Event

The company released its 2023 semi-annual report after the close on August 24, 2023.

Comments:

Achieve rapid growth in performance and continue to increase investment in research and development

In the first half of 2023, the company achieved operating income of 134.3234 million yuan, an increase of 21.81% over the same period last year. This is mainly due to the fact that with the stabilization of the external environment, the company actively promoted the implementation of business delivery, resulting in a steady increase in operating income. The net profit returned to the home was 11.4447 million yuan, an increase of 27.78% over the same period last year. The company's sales expenses, management expenses and R & D expenses increased by 26.27%, 13.59% and 16.29% respectively compared with the same period last year.

Leo satellite measurement demand is expected to grow rapidly, company orders to achieve rapid growth with the successful launch of China's first satellite Internet technology test satellite, China's Leo communication satellite industry is expected to enter the fast lane. Leo satellite measurements are widely distributed in all aspects of its industrial chain, including satellite payloads, whole satellites and ground stations. The measurement market demand for Leo satellites has appeared and is expected to maintain a rapid growth trend. The company seized the market opportunity and achieved a rapid increase in orders for satellite-oriented electromagnetic measurement system business (including phased array calibration measurement system and RF measurement system) in the first half of the year. In terms of product research and development, the company continues to vigorously develop the key hardware in the electromagnetic measurement system, and has successfully developed hardware products such as high-precision multi-degree-of-freedom turntable, super large scanning frame, low scattering metal test rack, and so on, which have been applied in the project one after another, further improving the independent controllability of the measurement system, shortening the delivery cycle and improving the delivery capability.

Layout of new phased array products, research and development work progresses smoothly

In the business section of phased array products, the company continued to promote the development of multiple models of phased array products in the first half of the year. With the continuous emergence of all kinds of new equipment platforms, the demand for the development of new phased array antennas continues to increase. At present, how to effectively reduce the development and production cost of phased array radar on the premise of ensuring its performance index, and how to meet the requirements of high performance and high integration according to the technical requirements of all kinds of equipment platforms is the main technical development trend in the industry. The phased array products developed by the company in the first half of the year are all new products in the low-cost direction, including miniaturized new phased array antennas, multi-mode common-aperture integrated antennas, and low, small and slow target detection radars, etc. part of the product prototypes have completed the development and testing work and delivered, some of the product prototypes have completed the development work, and some of the new development requirements have entered the prototype development stage.

Profit forecast and investment suggestion

The continuous promotion of national defense information construction has brought new development opportunities for relevant electronic information companies, and the company is expected to fully benefit. It is predicted that the operating income of the company from 2023 to 2025 is 4.74,6.37 and 841 million yuan. with reference to the operating situation in the first half of the year, the net profit is adjusted to 0.80,1.16,158 million yuan, EPS is 1.10,1.59,2.18 yuan per share, and the corresponding PE is 43.83,30.41,22.20 times.

Since the listing, the company's PE has mainly run between 48 and 148. taking into account the growth of the company and the change of market valuation, adjust the company's target PE to 60 times in 2023, corresponding to the target price of 66.00 yuan. Maintain a "buy" rating.

Risk hint

The risk of industrial policy change; the risk of intensified market competition; the risk of seasonal fluctuations in income; the risk of product upgrading and technology iteration; the risk of leakage of core algorithms; the risk of brain drain.