NNCC(600435) 民生证券·2024-04-26 11:00Investment Rating - The report maintains a "Recommended" rating for the company [9] Core Views - The company is experiencing a temporary performance pressure in Q1 2024, with a significant year-on-year revenue decline of 86.5% due to slower contract signing progress [8] - Despite the revenue drop, the gross margin improved by 25.8 percentage points to 53.2%, although the net margin decreased significantly [8] - The company is focusing on its core business and aims to achieve a revenue of 3.8 billion yuan in 2024, reflecting a year-on-year growth of 6.6% [8] - The company has divested non-core assets and is implementing equity incentives to enhance development quality [8] Financial Summary - Revenue projections for 2023A, 2024E, 2025E, and 2026E are 3,565 million yuan, 4,672 million yuan, 6,106 million yuan, and 7,932 million yuan respectively, with growth rates of -7.2%, 31.1%, 30.7%, and 29.9% [2] - Net profit attributable to shareholders is forecasted to be 192 million yuan in 2023A, increasing to 253 million yuan in 2024E, 332 million yuan in 2025E, and 435 million yuan in 2026E, with growth rates of 3.9%, 31.8%, 31.1%, and 31.1% respectively [2] - The company’s PE ratio is projected to decrease from 70 in 2023A to 53 in 2024E, 40 in 2025E, and 31 in 2026E, indicating an improving valuation [2][6] Operational Insights - The company reported a net cash flow from operating activities of -700 million yuan in Q1 2024, down from 10 million yuan in Q1 2023, primarily due to insufficient revenue from uncontracted orders [8] - The company’s focus on its main responsibilities and core business has led to a significant improvement in profitability metrics, with a net profit margin increase observed post-divestment of non-core assets [8]