Events:
The company recently announced that the China Star 26 satellite has entered the scheduled orbit as planned and will be handed over to China Satcom (hereinafter referred to as "the company") for operation and management after passing the in-orbit test.
Comments:
The capability of high-throughput satellite Internet has been further improved. The launch satellite adopts the Dongfanghong 4 enhanced satellite platform and uses the hybrid propulsion design of electric propulsion and chemical propulsion, so that the satellite can carry more Ka band high-throughput communication loads. The satellite has also designed 94 user beams, which can cover the whole territory of China and its surrounding areas and waters, East Asia, Southeast Asia, parts of South Asia, and parts of the Pacific and Indian Oceans. At this point, the company has 17 operational satellites in orbit. Among them, China Satellite 26 will work with China Satcom's existing China Star 16 satellite and China Star 19 satellite to provide users with high-speed private network communications and satellite Internet access and other services, and the capability of high-throughput broadband services has been greatly improved.
Super 100 Gbps high-throughput satellite ushered in a new era of satellite Internet. According to the company's disclosure, high-throughput satellites can provide high-speed private network communications and satellite Internet access to aviation, navigation, emergency, energy, forest and grass industries and universal service users. to provide safe and reliable means of information transmission with wider coverage for remote areas. We expect that the high-orbit broadband communication network built by the company will form effective coordination with the low-orbit network planned by the National Star Network Group, and the company already has a first-mover advantage in terms of the huge demand for broadband communications for air travel and long voyages. Orbital resources + satellite resources + networking technology + mature operation experience + head customer ecological group to promote the company to open a new era of satellite Internet. Taking the airborne Internet as an example, the company delivered the first airborne satellite communication terminal to Air China's BMY 737 at the beginning of the year, marking the stage of refitting and obtaining evidence of Air China's BMY 737 Ka aviation Internet aircraft. The draft of the implementation Plan for accelerating Air access to the Internet issued by the Civil Aviation Administration of China mentioned that the entire fleet is planned to access the Internet over the air in 2022, which has been delayed by the epidemic in the past two years, but according to Comac's forecast, by 2040, China's fleet will reach 9957, which is expected to become the world's largest airborne Internet market.
Investment suggestion: optimistic about the company's business development capability relying on high-orbit satellites, we forecast that the company's operating income from 2022 to 2024 will be 2742 million yuan, respectively, and the net profit of returning to the mother will be 7.08 million yuan, respectively. 975 million yuan, corresponding to the EPS of 0.17 picks, 0.23 yuan per share, corresponding to PE81.1/68.46/58.88X, the first coverage, given a "buy" rating.
Risk tips: impairment of satellite assets, profit forecasts and valuations are not up to expectations, airborne supply chain is limited