FY profit and cash upgrades: FY revenue is now fully covered by orders, and Q3 trading in line with management expectations leads to FY profit expectations now being at the upper end of consensus. FY net debt is expected to be materially better at c.£60m, i.e. flat vs 1H20 despite increased investment, driven by continued strong operating cash conversion. Cover building: FY21E order cover (on increased revenue) is now c.60%, with Countermeasures & Energetics (C&E) at 82%, and the shorter-cycle Sensors & Information (S&I) at 47%, where order intake was up 32% vs the prior period. Divisional summary: In S&I, delivery milestones were met against the HMDS Sensors programmes, EMBD progressed to low-rate initial production ahead of plan, and JBTDS and AVCAD testing continue. Roke delivered the first “Resolve-Light” EW systems in the period and security markets remain buoyant. In C&E, the Australian business has made excellent progress, delivering against the US DoD F-35 contract. The UK business is meeting volume objectives and is now focused on operational improvement. The US businesses have seen some CV-19 related challenges, but these have not had a material impact on deliveries. Tennessee capacity expansion is progressing as planned. There is strong demand from space customers in Energetics. Changes to estimates: FY20E revenue increases by 5%; FY21E/22E increase by 3%/2% respectively. FY20E adj. operating profit increases by 3%. We hold FY21E/22E profit forecasts, with increased growth (e.g. in U.S. Sensors) having a modest mix effect. FY20E net debt improves 21% to £60m. Path to 400p: In our view, progress being delivered across the Group should increase the level of confidence in our Bull case, which we summarise in this note. Chemring continues to benefit from market-leading positions across 80% of its revenues, and remains a key Buy. We raise our TP to 300p (from 265p).