Main points of investment

Event: on August 30, 2023, Shanghai Hankun released a report for the first half of 2023, saying that the company realized operating income of 147 million yuan in the first half of 2023, a decrease of 19.67% over the same period last year, and a net profit of-15 million yuan, a decrease of 163.13% over the same period last year. Deducting the non-return net profit was-35 million yuan, a decrease of 297.79% over the same period last year.

Full-chain layout of broadband mobile communications, short-term performance fluctuations waiting to be repaired. The company's products cover broadband communication chips, communication modules, terminals, base stations, application systems, etc., and have formed the layout of the whole industry chain of "chip-module-terminal-base station-system", realizing the independent control of R & D and production. and ranked first in the evaluation of customer broadband mobile communication projects for many times. In the field of broadband mobile communications in the industry, the company is in a leading position in terms of technology reserve, product capability, number of models and equipment and market share. Due to the influence of external factors, the company's performance experienced short-term fluctuations. In the first half of 2023, the company achieved an operating income of 147 million yuan, a decrease of 19.67% over the same period last year, and a net profit of-15 million yuan, a decrease of 163.13% over the same period last year. The non-homed net profit was-35 million yuan, down 297.79% from the same period last year.

The position of broadband tactical communication is stable, and there are many breakthroughs in network chain and unmanned services. In the first half of 2023, the project group progressed smoothly, which consolidated the company's leading position in the broadband tactical communications industry, and expanded the scope of the company's product allocation to the team level and individual soldiers: in the field of ① traditional special broadband communication services, the company continued to smoothly progress a number of model development projects, and won the new bid for the development of type 2 equipment of a certain service. The special 5G series product development tasks undertaken by ② Company have successively completed customized development tasks such as access and return integration and anti-interference, and are about to turn to the model development stage; ③ has achieved excellent results in all two major technology series in the competition for the development of a new generation of terminal communication systems of certain military services. In addition, the company has also actively developed the network chain business, and has won the development tasks of four models, such as networking of all kinds of information equipment and fire control, and has completed the appraisal and started batch installation from the end of this year to next year. At the same time, the company has also strengthened its cooperation with various overall and platform units to develop various types of communication, measurement and control equipment for drones, unmanned vehicles and unmanned boats, which will continue to invest more R & D forces in the future.

Strong R & D to accumulate long-term momentum and achieve breakthroughs in technological innovation. Investment in R & D in the first half of 2023 was 95 million yuan, an increase of 69.74 percent over the same period last year. As the overall technical unit, the company participated in the research and development project of a general equipment model of the industry broadband mobile communication system. On the basis of the civil fourth generation mobile communication technology (4GTD-LTE), aiming at the special needs of customer applications, a series of technological innovations and breakthroughs have been achieved in high mobility long-distance communication, self-organizing networking communication, spectrum sensing, broadband anti-interference communication, system self-synchronization and so on. By the end of June 2023, the company has 38 core patents, 115 software copyrights, and the core intellectual property rights are independently controllable, and have been identified as high-tech enterprises, Shanghai innovative enterprises, Shanghai municipal technology center, Shanghai Little Giant Enterprises, key software enterprises in the national planning layout and the Ministry of Industry and Information Technology.

The satellite factory is expected to be put into operation by the end of 2023, and the development of the "G60 star chain" is expected to accelerate. Shanghai Songjiang has accelerated the construction of the low-orbit broadband multimedia satellite "G60 Star chain". The experimental satellites have been launched and successfully networked. 1296 satellites will be implemented in the first phase, and more than 12000 satellites will be networked in the future. The "G60 Star chain" industrial project starts with the construction and operation of the global low-orbit satellite communication network, driving the development of clusters such as research and manufacture of satellites and departmental components, guidance of remote terminals and network equipment, network operation and satellite operation and maintenance, industry application and value-added services, etc. the project is divided into three phases. at present, the first phase of the project will build a digital satellite manufacturing plant, a satellite in-orbit operation and control center and a satellite Internet operation center. The design capacity of the satellite factory will reach 300 pieces per year, and the cost of a single satellite will be reduced by 35%. It is expected to be put into use by the end of 2023. With the accelerated construction of domestic satellite Internet, satellite communications are expected to become an important part of national defense informatization. As the equipment supplier and overall solution supplier of private network broadband mobile communication system, the company may benefit from the development of the industry.

Investment suggestion: the company has a leading advantage in the field of broadband mobile communications in the industry. under the background of the improvement of the strategic status of national defense informatization, the company will continue to benefit for a long time. We forecast that the operating income from 2023 to 2025 will be 7.49 million yuan, an increase of 86.9%, 44.5%, 69.9%, and net profit of 2.33, 342, 522 million, respectively, an increase of 172.3%, 47.0%, 52.6%, corresponding to 0.37, 0.54, 0.83 and PE, respectively, covering for the first time. Give a rating of "overweight".

Risk tips: customer purchase orders fluctuate, satellite construction is not as expected, and market competition intensifies.