费控能力有所提升，存货与合同负债大幅走高或反映下游需求走高。从费用端看，2024 年一季度在研发费用保持24.21%同比增速的情况下，销售费用同比-41.78%，管理费用同比-4.40%，财务费用同比-686.45%，费控能力提升明显。截至一季度，公司存货9.43 亿元，同比+61.47%，合同负债5.53 亿元，同比+910.56%，考虑到军品以销定产的特点，存货及合同负债的增加反映下游需求的回暖，公司获得订单增加，有望实现更高收入。Incident: The company released its 2024 quarterly report. The company achieved operating income of 284 million yuan in the first quarter of 2024, -9.97% year-on-year, and realized net profit of 94 million yuan, +49.70% year-on-year.
Key points of investment
Net profit to mother surged 49.70% year on year, and operating income was under pressure in the short term. In the first quarter of 2024, the company achieved operating income of 284 million yuan, a year-on-year decrease of 9.97%, and realized a net profit of 94 million yuan to mother, an increase of 49.70% over the previous year. From the revenue side, considering that the company is still in a transition period of transformation and upgrading of the traditional set-top box business, the decline in the company's sales performance is in line with expectations. On the profit side, due to the implementation of cost control measures, the increase in non-recurring profit and loss, including government subsidies, financial management income, etc., and the reduction in credit impairment losses due to one-time litigation settlements, the company's net profit to mother increased sharply year-on-year.
Cost control capabilities have improved, and inventory and contract liabilities have risen sharply or reflect higher downstream demand. From the cost side, in the first quarter of 2024, while R&D expenses maintained a year-on-year growth rate of 24.21%, sales expenses were -41.78%, management expenses were -4.40%, and financial expenses were -686.45% year-on-year, and cost control capabilities improved significantly. As of the first quarter, the company had inventory of 943 million yuan, +61.47% year over year, and contract debt of 553 million yuan, or +910.56% year over year. Considering the characteristics of military goods based on sales and production, the increase in inventory and contract liabilities reflects a recovery in downstream demand. The company received an increase in orders and is expected to achieve higher revenue.
Joining Gus Aerospace, the satellite internet industry is booming. The company issued an announcement on August 23, 2023 to participate in the bid for the Shanghai Gusi Aerospace Technology Co., Ltd. capital increase and share expansion project with its own capital investment of 30 million yuan. In recent years, with domestic and foreign demand driven by technological innovation, low-orbit high-density constellation networking has developed rapidly, and the satellite Internet has been included in the scope of the country's “new infrastructure”. Gus Aerospace has potential in the satellite R&D design and intelligent manufacturing business market. The company hopes to seek business opportunities related to terrestrial equipment such as satellite user terminals through cooperation to promote the company's sustainable development.
Profit forecast and investment rating: The company's performance is in line with expectations. China is in a stage of accelerated development of national defense informatization. Demand for smart mechatronics is expected to be strong. At the same time, Galaxy Electronics is deeply deploying the satellite Internet industry. Based on the company's leading position within the industry, it is expected to benefit from downstream expansion. We are optimistic about the company's development and raised our previous forecast. The company's net profit for 2024-2026 is estimated to be 269/306/352 million yuan (previous value of 2.56/3.01/345 million yuan), and the corresponding PE is 20/18/15 times, respectively, maintaining the “buy” rating.
Risk warning: 1) Special equipment price review risk; 2) raw material price fluctuation and insufficient supply risk; 3) Market competition increases risk.
