Revenue has clearly accelerated, and net profit has increased steadily
According to the company's semi-annual report for 2023, the company's 1H23 revenue/net profit attributable to parents was 2,877/311/252 million yuan, an increase of 15.80%/6.80%/7.63%, respectively, over the previous year. The company's revenue/net profit after deducting non-attributable net profit for the 2Q23 single quarter was 1,843/2.69/240 million yuan, respectively, an increase of 19.15%/12.45%/16.79% over the previous year. We maintain our profit forecast. We expect net profit to be 8.58/9.94/1150 million yuan from 2023 to 2025, and the average expected average of PE25x for the comparable company Wind in 23. Considering the synergistic effects of the company's layout in various fields, we have given PE36x a target price of 13.40 yuan/share for 23 years, corresponding to a target price of 13.40 yuan/share, and maintain the “increase in holding” rating.
Breakthroughs continue in the field of wireless communications. Looking at Beisan products entering the batch order stage by sector, the wireless communication/Beidou navigation/aerospace/digital intelligence ecosystem business achieved revenue of 13.20/1.10/1.35/1,266 billion yuan, compared to +37.45%/-52.99%/+26.86%/+10.07%. The decline in Beidou business was mainly affected by the time new contracts were signed and revenue was confirmed. The company consolidated its main wireless communication business. The next generation of shortwave and ultra-high frequency products and satellite guidance products successfully entered the new market, breaking through the field of digital communication for private power networks for the first time. In terms of the Beidou business, the company's Beidou-3 terminal has entered the certification and batch order stage in the institutional market, and has successively won bids for Beidou-3 application projects in the energy industry in the industry market. In terms of aerospace, Chida Aircraft has received large orders one after another, and operating efficiency has been improved. The digital intelligence ecosystem business won a major mobile bid, and its position in the industry continues to be stable.
Increase investment in emerging fields and continue to build competitive advantage
In the field of satellite Internet, the company has obtained development qualifications and officially joined the ranks of system developers; in the field of unmanned information, the Haeger Tianteng Information Industry Base has begun laying the foundation stone to build the first unmanned information industry base in China covering various fields of land, sea and air. At the same time, the company plans to issue shares to specific targets to raise funds and has obtained approval from the Securities Regulatory Commission for registration, and will further increase investment in next-generation information technology fields such as “Beidou+5G,” “unmanned information industry,” and “satellite Internet.” As the company continues to strategically invest in emerging fields on the basis of consolidating its core business and opening up a second growth curve, its competitive advantage is expected to continue to expand.
Maintain an “increase in holdings” rating
We maintain our profit forecast. We expect net profit to be 8.58/9.94/1150 million yuan for 23-25. According to Wind's unanimous expectations, the average PE value of comparable companies in 2023 is 25x. Considering the synergistic effects of the company's layout in various fields, we have given a 23-year target of PE36x, corresponding to a target price of 13.40 yuan/share, and maintain the “increase in holdings” rating.
Risk warning: Downstream market demand falls short of expectations; development of defense informatization falls short of expectations.