Description of the event

On October 30, the company released its report for the third quarter of 2024. According to the announcement, the company's revenue for the first three quarters of 2024 was 25.298 billion yuan, down 26.95% year on year; net profit to mother was 1.818 billion yuan, down 23.12% year on year.

The progress of contract signing affects revenue. The three quarterly reports of the company actively exploring emerging fields show that due to the progress of contract signing, the established demand for related products did not sign contracts as scheduled, and the company's revenue declined.

The company's investor relations activity record sheet on September 30 shows that the company is a large state-owned aviation equipment manufacturer and has a natural advantage in the “low altitude economy” industry. Currently, the company is in an active exploration stage. In the future, under the overall deployment of the Aviation Industry Group, the company will seize development opportunities in the “low-altitude economy”, transform civilian drone development and general military and civilian technology into breakthroughs, and explore development models such as application scenario construction and operation system support.

Investment advice

The company's net profit for 2024-2026 is estimated to be 3.703 billion yuan, 4.505 billion yuan, and 5.42 billion yuan, respectively, with year-on-year growth rates of 23.1%, 21.7%, and 20.3%. The corresponding PE was 34.53 times, 28.38 times, and 23.59 times, respectively. Maintain a “buy” rating.

Risk warning

Downstream demand fell short of expectations, R&D fell short of expectations, and capacity release fell short of expectations.