The company disclosed its 2024 semi-annual report. The company achieved operating income of 0.476 billion yuan, a year-on-year decrease of 9.15%; net profit to mother of 20.3978 million yuan, a year-on-year decrease of 9.04%; after deducting non-net profit of 19.3276 million yuan, a year-on-year decrease of 3.46%.
Performance is under pressure in the short term. The company achieved operating income of 0.476 billion yuan, a year-on-year decrease of 9.15%, achieved net profit attributable to listed shareholders of 20.3978 million yuan, a year-on-year decrease of 9.04%, and net profit after deducting non-recurring profit and loss of 19.3276 million yuan, a year-on-year decrease of 3.46%. Looking at a single quarter, the company achieved operating income of 0.272 billion yuan, a year-on-year decrease of 13.46%, and realized net profit attributable to listed shareholders of 10.5642 million yuan, a year-on-year decrease of 20.97%. Net profit after deducting non-recurring profit and loss was 10.1673 million yuan, a year-on-year decrease of 11.44%.
Business segment performance differentiation. The core business of Aerospace Intelligent Equipment covers railway vehicle safety inspection systems, intelligent test simulation systems and microsystem components, and intelligent nuclear equipment. The railway vehicle safety inspection system achieved revenue of 95.8115 million yuan, an increase of 4.23% over the previous year, but gross margin decreased by 11.78pct to 36.17%.
The revenue of the intelligent test and simulation systems and microsystem components business was 0.163 billion yuan, down 13.89% year on year, while gross margin increased by 2.90 pct to 18.60%. The revenue of the nuclear intelligent equipment system was 0.201 billion yuan, a year-on-year decrease of 10.87%, and gross margin increased by 1.67 pct to 19.20%.
Gross margin increased, and cost control during the period showed results. In 2024, H1 achieved a gross profit margin of 24.09%, a year-on-year increase of 4.27 percentage points, and a net profit margin of 4.29%, a slight increase of 0.01 percentage points over the previous year. H1's expense ratio for the 2024 period was 18.28%, an increase of 3.03 percentage points over the previous year. The financial expense ratio was 0.59%, down 0.16 percentage points year on year, the management expense ratio was 8.03%, up 1.04 percentage points year on year, sales expense ratio was 3.75%, up 0.84 percentage points year on year, and R&D expenses rate was 5.91%, up 1.31 percentage points year on year.
Strengthen the leading position in core technology and meet market challenges with diversified strategies. Facing macroeconomic fluctuations and market competition, Aerospace Smart Equipment will pay close attention to economic trends, thoroughly study industry policies, and adjust strategic direction in due course. The company will continue to strengthen the leading position of core technology in rail transit, aerospace, and nuclear industries, actively explore new business segments, and rely on technological innovation to promote industrial upgrading. In order to enhance the ability to withstand risks, Aerospace Smart Equipment will optimize internal management, reduce costs, and improve operational efficiency. At the same time, emphasis will be placed on talent team building, attracting and retaining key talents, and supporting enterprise development with stable human resources.
In product development, the company will closely meet market needs, improve R&D processes, and reduce innovation risks.
In order to ensure the stability of talents, the company will further invest in improving the welfare system. Looking forward to the future, Aerospace Smart Equipment adheres to high-quality development as the core, seizes industry opportunities through diversified strategic initiatives, and strives to achieve continuous and healthy growth.
Profit forecast: Considering the slow development of satellite internet, we lowered our profit forecast for 2024-2026. We forecast the company's net profit to be 0.099 billion, 0.115 billion, and 0.137 billion, respectively, corresponding to valuations of 86, 74, and 62, maintaining the “gain” rating.
Risk warning: Risk of fluctuations in downstream demand, the company's product development progress falling short of expectations, and changes in the competitive landscape.