CATEC(SH:600879) China Post Securities·2024-04-08 16:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Insights - The company's aerospace products have maintained rapid growth, while losses in civilian products have impacted overall performance. In 2023, the company achieved operating revenue of 18.727 billion, a year-on-year increase of 7.16%, and a net profit attributable to shareholders of 0.525 billion, a year-on-year decrease of 14.35% [5][6]. - The company is expected to benefit from the rapid development of the domestic commercial aerospace sector and has made breakthroughs in both domestic and international markets for unmanned systems [6]. - The company plans to transfer 51% of its subsidiary, Aerospace Electric, which will help focus on its main business and optimize its industrial structure [6]. - The forecast for net profit attributable to shareholders for 2024-2026 is 0.756 billion, 0.895 billion, and 1.107 billion, representing year-on-year growth rates of 44%, 18%, and 24% respectively [7]. Financial Summary - In 2023, the company's aerospace products generated revenue of 14.349 billion, up 15.46% year-on-year, with a gross margin of 23.09%. Civilian products generated revenue of 4.230 billion, down 12.86% year-on-year, with a gross margin of 10.06% [6]. - The company’s total assets as of 2023 amounted to 46.436 billion, with a debt-to-asset ratio of 49.1% [9]. - The projected operating revenue for 2024 is 20.880 billion, with a growth rate of 11.49% [8].