Investment Rating - The report maintains a "Buy" rating for the company with a target price of 29.28 CNY, based on a 48x PE for 2025 [2][3]. Core Views - The company is expected to achieve small batch production and delivery of various aircraft landing gear in 2025, indicating a significant expansion in the landing gear market [6]. - The military demand is anticipated to recover, while the civil aviation brake market presents substantial domestic replacement opportunities due to geopolitical tensions affecting supply chains [6]. - The company has established a dedicated team to improve accounts receivable collection, which is expected to enhance profitability [6]. Financial Forecasts - Revenue is projected to decline to 538 million CNY in 2024, followed by a rebound to 1,078 million CNY in 2025, representing a growth of 100.3% [2][9]. - The net profit attributable to the parent company is expected to drop to 16 million CNY in 2024, but recover to 203 million CNY in 2025, reflecting a growth of 1159.7% [2][9]. - The company's gross margin is forecasted to decrease to 49.8% in 2025, with a gradual recovery to 50.7% by 2027 [2][9]. Key Financial Metrics - The company’s earnings per share (EPS) is adjusted to 0.61 CNY for 2025, with further increases to 0.82 CNY in 2026 and 1.06 CNY in 2027 [2][9]. - The net profit margin is expected to improve from 3.0% in 2024 to 22.7% in 2027 [2][9]. - The return on equity (ROE) is projected to rise from 0.6% in 2024 to 11.5% in 2027, indicating improved profitability [2][9].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook for investment over the next 6-12 months [6]. Core Insights - The company experienced a significant decline in revenue in 2024, with a total revenue of 538 million yuan, down 43.62% year-on-year, and a net profit attributable to shareholders of 16 million yuan, down 92.57% [1][2]. - In Q1 2025, the company reported a revenue of 262 million yuan, reflecting a year-on-year increase of 9.27%, and a net profit of 53.8 million yuan, although this was still a decline of 26.72% compared to the previous year [1][2]. - The company’s landing gear business is expected to ramp up, with significant revenue potential as various models reach important application milestones [3]. - The domestic aviation brake products are poised to benefit from the trend of localization and self-sufficiency in the aviation supply chain, particularly as domestic airlines face rising import costs [4]. Summary by Sections Financial Performance - In 2024, the company’s revenue from various segments included 163 million yuan from aircraft brake control systems, 210 million yuan from wheels, 65.83 million yuan from testing, and 83.62 million yuan from landing gear, with respective year-on-year changes of -60.60%, -35.98%, -65.80%, and +1766.18% [2]. - The gross margins for these segments were 56.08%, 63.46%, 64.90%, and 13.91% respectively, indicating a shift towards lower-margin products [2]. Business Development - The company has made progress in the research and delivery of multiple landing gear types, with expectations for continued revenue growth in 2025 [3]. - A new surface treatment production line for military and civilian large aircraft landing gear has been put into operation, which is expected to enhance cost efficiency and support production and delivery timelines [3]. Market Outlook - The report forecasts a recovery in net profit, projecting 188 million yuan in 2025, 355 million yuan in 2026, and 461 million yuan in 2027, with corresponding EPS estimates of 0.57, 1.07, and 1.39 yuan [4][5]. - The company’s current stock price corresponds to a PE ratio of 47x for 2025, 25x for 2026, and 19x for 2027, suggesting potential for valuation improvement as earnings recover [4][5].

Core Viewpoint - The company reported a significant decline in revenue and net profit for 2024, primarily due to delayed contract signings and an increase in the proportion of lower-margin landing gear business, but anticipates a recovery in demand and growth in the coming years [1][4]. Group 1: Financial Performance - In 2024, the company achieved revenue of 538 million yuan, a year-over-year decrease of 43.62%, and a net profit of 16.15 million yuan, down 92.57% year-over-year [1]. - The company's various business segments experienced revenue declines, with the aircraft brake control systems and wheels generating 163 million yuan (down 60.60%), testing and inspection services at 210 million yuan (down 35.98%), and brake discs at 66 million yuan (down 65.80%) [2]. - The landing gear business, however, saw a remarkable increase in revenue to 84 million yuan, a year-over-year growth of 1766.18%, marking it as a new growth curve for the company [2]. Group 2: Future Outlook - For Q1 2025, the company reported revenue of 262 million yuan, a year-over-year increase of 9.27%, while net profit was 54 million yuan, down 26.72% due to increased R&D expenses and credit impairment losses [3]. - The company expects demand in the military aircraft sector to gradually recover, with significant growth anticipated in the wheels and brake discs segments, and the landing gear business emerging as a new growth point [3]. - The civil aviation brake business is expected to benefit from domestic substitution opportunities, particularly as the cost of imported materials rises, leading to potential rapid growth [3]. Group 3: Profit Forecast and Valuation - The company forecasts net profits of 249 million yuan, 351 million yuan, and 459 million yuan for 2025-2027, reflecting a downward adjustment due to increased R&D investment and a higher proportion of lower-margin landing gear revenue [4]. - The target price for the company is set at 40.60 yuan, based on a 54 times PE ratio for 2025, indicating a significant increase from the previous target of 23.46 yuan [4].

Core Viewpoint - Beijing Beimo High-Tech Friction Material Co., Ltd. (referred to as "Beimo High-Tech") reported significant declines in multiple financial metrics for the year 2024, including a 92.57% drop in net profit and a 207.51% increase in financial expenses, indicating a challenging operational environment that warrants investor attention [1][3][10]. Revenue Performance - In 2024, Beimo High-Tech achieved operating revenue of 537,899,353.73 yuan, a decrease of 43.62% from 954,016,301.63 yuan in the previous year, primarily due to delays in contract signing and pricing [2]. - Military product revenue was 473,341,934.65 yuan, down 35.55%, while civilian product revenue fell 70.59% to 64,557,419.08 yuan [2]. - Key product revenues saw significant declines, with aircraft brake control systems and wheels down 60.60%, brake discs down 65.80%, and testing income down 35.98% [2]. Profitability Analysis - The net profit attributable to shareholders was 16,154,211.77 yuan, a sharp decline of 92.57% from 217,431,178.89 yuan in the previous year, driven by revenue decline, changes in product mix, and slower accounts receivable collections [3]. - The net profit excluding non-recurring gains and losses was 6,156,135.22 yuan, down 97.05% from 208,948,387.28 yuan, indicating severe deterioration in core profitability [4]. Earnings Per Share - Basic earnings per share dropped to 0.05 yuan, a decrease of 92.42% from 0.66 yuan in the previous year, reflecting a significant reduction in shareholder returns [5]. - The diluted earnings per share, excluding non-recurring items, was only 0.02 yuan, further highlighting the challenges in core business profitability [6]. Expense Overview - Financial expenses surged by 207.51% to 7,799,648.09 yuan, primarily due to increased interest expenses from loans related to the acquisition of minority interests in Jinghan Yu [10]. - Sales expenses decreased by 16.42% to 29,347,420.78 yuan, potentially due to adjustments in sales strategies [7]. - Management expenses also fell by 19.45% to 62,202,563.96 yuan, suggesting cost control measures [8]. Research and Development - R&D expenses decreased by 32.78% to 57,603,921.26 yuan, representing 10.71% of operating revenue, indicating a need for balance between cost control and innovation [11]. - The number of R&D personnel decreased by 18.72% to 165, with a notable drop in the number of undergraduate staff, which may impact innovation capabilities [12]. Cash Flow Analysis - Operating cash flow net decreased by 8.03% to 184,515,302.06 yuan, primarily due to reduced sales collections [13]. - Investment cash flow net decreased by 27.30% to -109,729,044.51 yuan, reflecting a more cautious investment strategy [14]. - Financing cash flow net saw a dramatic decline of 13,006.27% to -422,283,601.29 yuan, largely due to borrowings for acquisitions and cash dividends [15].