Core ideas:
Event: the company released its semi-annual report for 2023, with operating income of 2.877 billion yuan, an increase of 15.80% over the same period last year, a net profit of 311 million yuan, an increase of 6.80% over the same period last year, and a net profit of 252 million yuan, an increase of 7.63% over the same period last year. Gross profit margin 33.97%, reduced 3.63pcts year on year, net profit 11.07%, reduced 0.97pcts year on year. During the reporting period, the company's overall operating performance maintained steady growth, Beidou Navigation was affected by the replacement of business income decreased compared with the same period last year, and continued to make breakthroughs in the direction of satellite Internet in new areas. The company persists in market development and technological breakthroughs, and at the same time strategically increases its investment in the field of new generation information technology such as "Beidou + 5G", "unmanned information industry" and "satellite Internet", and constructs the continuous transformation of "stock-increment". Continue to expand the scale of operation.
Core investment logic: (1) Revenue-profit end, the company's main business covers four major areas: "Wireless Communications, Beidou Navigation, Aerospace, and Mathematical Intelligence Ecology". Wireless communications cover more comprehensive services and have a complete communication product pedigree. Beidou Navigation is the first to realize the layout of the whole industry chain of "chips, modules, antennas, terminals, systems and operations", which is expected to benefit from the continuous promotion of aerospace information construction. (2) at the end of the pattern, according to the 23 semi-annual report, the company is one of the most complete types of communication equipment in the wireless communication field, and the Beidou 3 chip has the most models and categories in the special organization market in the field of Beidou navigation. it is the first domestic supplier of independent D-level (highest level) simulator in aerospace field and the manufacturer with the most license to use civil aviation communication, navigation and monitoring equipment. It is an information and communication technology service provider with competitive advantage in the field of digital intelligence ecology; (3) on the business development side, the company plans to raise no more than 1.855 billion yuan to expand "Beidou + 5G", as well as the layout of unmanned information industry and satellite Internet. It is expected to form a new increment.
Profit forecast and investment advice: it is estimated that the EPS for 23-25 years will be 0.34,0.42,0.51 yuan per share respectively. It is optimistic that the company benefits from the continuous promotion of China's aerospace information construction and the continuous development of civil downstream applications, raising funds to help open up new areas and new increments, giving the company a PE valuation of 40 times for 23 years and a reasonable value of 13.62 yuan per share.
Risk tips: the list is not as expected, major policy adjustments, market development and fund-raising are not as expected.