NNCC(SH:600435) 光大证券研究·2025-07-16 13:35Core Viewpoint - The company is expected to achieve significant profit growth in the first half of 2025, driven by increased product deliveries and improved demand in the downstream market [3][4]. Group 1: Performance Expectations - For the first half of 2025, the company anticipates a net profit attributable to shareholders of between 105 million to 120 million RMB, marking a turnaround from losses in the previous year [3]. - The expected net profit after deducting non-recurring items is projected to be between 95 million to 105 million RMB, also indicating a significant improvement year-on-year [3]. Group 2: Revenue and Delivery Growth - The primary reason for the expected profit increase is the rise in product deliveries, with a notable year-on-year increase in the first quarter of 2025, leading to revenues of 352 million RMB and a narrowed loss of 16.76 million RMB [4]. - The company's contract liabilities have decreased, with figures of 108 million RMB in Q1 2025 compared to 190 million RMB at the end of 2024, indicating improved operational efficiency [4]. Group 3: Business Goals and Sales Projections - The company aims to achieve a revenue target of 5 billion RMB and a total profit of 300 million RMB in 2025, reflecting strong growth confidence [5]. - Expected sales to the Weapon Group and its affiliates for 2024 are projected at 4 billion RMB, with actual sales amounting to 2.075 billion RMB, highlighting challenges in order confirmations due to technical changes and contract delays [5]. Group 4: Industry Position and Strategic Focus - The company specializes in dual-use military and civilian products, focusing on navigation control and ammunition information technology, and is positioned as a leader in several key technology areas [6][7]. - As a core enterprise in the navigation control segment of the Weapon Group, the company is well-positioned to benefit from the overall improvement in the industry chain's economic conditions [7].