JIANGXI GUOKE DEFENCE GROUP CO.(SH:688543) Minsheng Securities·2024-04-30 05:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 53.59 yuan [4]. Core Views - The company reported strong performance in Q1 2024, achieving revenue of 180 million yuan, a year-on-year increase of 26.0%, and a net profit attributable to shareholders of 33 million yuan, up 249.0% year-on-year [2]. - The significant growth in net profit is attributed to the delivery of high-margin products such as solid engine power and control products for guided equipment [2]. - The company has increased its R&D investment, with R&D expenses doubling to 20 million yuan in Q1 2024, representing a 10.7% R&D expense ratio [2]. - The company has successfully transitioned 12 products from research to mass production and has a robust project reserve with nearly 50 ongoing pre-research projects [2]. - The company is actively expanding its customer base and product offerings, having added 8 new projects in 2023, which opens up long-term growth opportunities [2]. Financial Summary - For Q1 2024, the company achieved a gross margin of 43.2%, an increase of 9.7 percentage points year-on-year, and a net profit margin of 19.1%, up 11.4 percentage points year-on-year [2]. - The company forecasts revenues of 1.271 billion yuan, 1.565 billion yuan, and 1.836 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 197 million yuan, 247 million yuan, and 300 million yuan [5]. - The projected PE ratios for 2024, 2025, and 2026 are 42x, 33x, and 27x respectively [5].