CATEC(SH:600879) Minsheng Securities·2024-04-29 02:30Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company's revenue for Q1 2024 was 3.81 billion yuan, a year-on-year decrease of 14.5%, with a net profit attributable to shareholders of 140 million yuan, down 21.4% year-on-year [2]. - The decline in performance is attributed to rising prices of key raw materials like copper and aluminum, intense competition in the cable industry, and a decrease in the delivery of aerospace products compared to the previous year [2]. - The gross profit margin for Q1 2024 was 19.2%, an increase of 0.82 percentage points year-on-year, while the net profit margin was 4.0%, a slight decrease of 0.05 percentage points year-on-year [2]. - The company expects a significant increase in related sales for 2024, projecting an 88% growth due to anticipated growth in China's aerospace launch missions [2]. - The unmanned systems business is accelerating, with a subsidiary achieving a revenue of 1.1 billion yuan in 2023, a year-on-year increase of 125.7% [2]. Financial Summary - For 2024, the company forecasts net profits of 738 million yuan, 894 million yuan in 2025, and 1.124 billion yuan in 2026, with corresponding PE ratios of 36x, 29x, and 23x [2][3]. - The total revenue is projected to grow from 21.594 billion yuan in 2024 to 28.795 billion yuan in 2026, reflecting a compound annual growth rate of approximately 15% [6]. - The company’s operating cash flow improved, with a net cash flow from operating activities of -1.26 billion yuan in Q1 2024, an improvement from -1.45 billion yuan in the same period last year [2].