StarNeto(002829) Soochow Securities·2024-04-29 23:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [12]. Core Insights - The company has experienced revenue and profit growth, particularly in its drone business, despite a decline in overall revenue and net profit for 2023 [11][12]. - The company has a strong market position in the unmanned systems sector, with significant advancements in core technologies and product offerings [18]. - The financial forecasts for 2024-2026 show a recovery in net profit, with estimates of 1.67 billion, 2.18 billion, and 2.70 billion respectively, reflecting a positive trend in profitability [12]. Financial Summary - Revenue for 2023 was 771 million, a decrease of 28.25% year-on-year, while net profit was 54 million, down 74.99% [17]. - The company’s operating cash flow is projected to improve significantly in 2024, with an expected cash flow of 110 million [2]. - The projected P/E ratios for the next three years are 26, 20, and 16, indicating a potential for valuation improvement as earnings recover [12]. Business Development - The company has expanded its product range in inertial navigation and optical detection, with applications in various sectors including transportation and security [11]. - The unmanned systems segment generated 500 million in revenue, showcasing the company's leadership in this market [18]. - The company is actively increasing its production capacity for optical detection products to meet future demand [11].