Core Viewpoint - The company, Beifang Navigation, has reported no significant changes in its main business operations, focusing on dual-use military and civilian products centered around navigation control and ammunition information technology [1] Group 1: Business Overview - Beifang Navigation's dual-use product business primarily revolves around "navigation control and ammunition information technology" [1] - The company is committed to developing eight specialized technical systems, including guidance and control, AI target autonomous recognition, electro-optical detection and guidance, advanced materials application, intelligent manufacturing, comprehensive thermal management, cluster networking communication, and intelligent integrated connectivity [1] - The company is advancing three industrial ecosystems: navigation and control, military communication, and intelligent integrated connectivity [1] Group 2: Operational Status - The company has conducted a self-inspection and confirmed that its current operational status is normal [1] - There have been no significant changes in the external market environment or industry policies affecting the company [1]

Core Viewpoint - The company's performance in 2024 is under pressure due to factors such as contract signing delays, but a significant recovery is expected in Q1 2025. The company is a leader in weapon guidance and control, with a well-established industrial chain and highly certain demand, indicating potential for continuous performance improvement [1][4]. Investment Highlights - The target price has been lowered to 18.9 yuan while maintaining a "buy" rating. The company is expected to benefit from the "14th Five-Year Plan" for equipment construction, leading to steady growth in future performance. The EPS for 2025 has been revised down to 0.21 yuan (previously 0.23 yuan), while the EPS for 2026 remains at 0.29 yuan, and the EPS for 2027 is projected at 0.34 yuan. The average PE for comparable companies in 2025 is 66 times, and given the company's leading position in guidance and control, a PE of 90 times is assigned for 2025 [2][3]. Company Performance - In 2024, the company achieved revenue of 2.748 billion yuan (down 22.91%), primarily due to changes in product technical status and delays in order contracts, resulting in a net profit of 59 million yuan (down 69.29%). In Q1 2025, the company reported revenue of 352 million yuan (up 347.47%) due to an increase in product deliveries, with a net profit of -17 million yuan (compared to -50 million yuan in Q1 2024). The gross margin for 2024 slightly decreased to 22.64% (down 2.16 percentage points), with R&D investment of 280 million yuan and an R&D intensity of 10.19%, indicating a significant increase in R&D investment [3][4]. Industry Outlook - The demand in the industry is highly certain, with expectations for a long-term high boom in related sectors due to the evolution of modern warfare towards informationization and automation. The company's technical system and industrial ecosystem are well-established, focusing on navigation control and ammunition information technology, and aiming to enhance high-end industries while modernizing traditional sectors. 2025 is a critical year for the "14th Five-Year Plan," and with strong downstream demand and improved operational efficiency, the company is poised for a recovery and rapid growth [4][5].