CITIC COHC(SZ:000099) Huachuang Securities·2024-04-26 08:02Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation of outperforming the benchmark index by 10%-20% over the next six months [31]. Core Insights - The company achieved a record high net profit attributable to shareholders of 0.84 billion yuan in Q1 2024, representing a year-on-year growth of 21.7%. The operating revenue for the same period was 4.57 billion yuan, up 13.0% year-on-year [1]. - The report emphasizes the potential of the low-altitude economy, highlighting that it has the necessary conditions for rapid industrial development. The government has elevated "low-altitude economy" to a strategic emerging industry, which is expected to catalyze growth similar to that seen in the new energy sector [1]. - The company is positioned as a core player in the low-altitude economy, with a strategy focused on integrating manned and unmanned operations, as well as helicopter and fixed-wing services [1]. Financial Performance Summary - In Q1 2024, the company reported a gross profit margin of 19.6%, an increase of 4.4 percentage points year-on-year, and a net profit margin of 18.3%, up 1.3 percentage points year-on-year [1]. - The operating costs for Q1 2024 were 3.68 billion yuan, reflecting a year-on-year increase of 7.2%. The company’s three expense ratios were 7.6%, up 2.2 percentage points year-on-year [1]. - The report forecasts net profits for 2024, 2025, and 2026 to be 2.7 billion, 3.2 billion, and 3.7 billion yuan, respectively, with corresponding earnings per share (EPS) of 0.35, 0.41, and 0.48 yuan [1][36]. Industry Outlook - The report suggests that the commercialization process of the low-altitude economy may progress faster than market expectations, particularly with advancements from domestic eVTOL companies [1]. - The company is expected to benefit from the expansion of the C-end consumer market, including low-altitude tourism and short-distance transportation, as well as from government support for strategic emerging industries [1]. - The report highlights the potential for the company to participate in the establishment of new low-altitude operational network standards, as it is recognized as a leading enterprise with extensive experience in low-altitude operations [1].