Event description

On October 27, the company released its third quarter report for 2023. According to the announcement, the company realized operating income of 2.266 billion yuan in the first three quarters, with an increase of 2.37%; net profit attributable to parent company was 308 million yuan, with an increase of 2.06% at the same time.

Insist on seeking motivation from science and technology and make new achievements in scientific research

According to the "Record Form of Investor Relations Activities of Tianjin 712 Communication Broadcasting Co., Ltd." issued by the Company on 5 September 2023, it was disclosed that in the first half of 2023, the Company focused on improving its scientific and technological innovation capability, strengthening its originality and leading technological breakthrough, and further enhancing its core competitiveness. Among them, the achievements in the field of data link: ① The company won the bid for the joint general data link shipboard equipment with the first excellent result, marking that the company has made breakthrough progress in the field of data link communication, and also opened up a new application platform for the company in the shipboard field.② Winning the bid for integrated data link piggyback and vehicle-mounted terminals, supporting access to integrated data link networks and satellite channels, and further strengthening communication support capabilities.③ Winning the bid for a platform collaborative data link terminal, realizing two-way information interaction between platforms and between platforms and ground command and control stations, further expanding the new platform market.

Investment suggestion

According to the financial report, we adjust the profit forecast, and it is estimated that the net profit of the parent company from 2023 to 2025 will be RMB 9.02 billion, RMB 1.168 billion and RMB 1.494 billion respectively (the value before 2023/2024 is RMB 1.132 billion/RMB 1.424 billion), with a year-on-year growth rate of 16.4%, 29.5% and 27.9%. The corresponding PE were 22.74, 17.56 and 13.72 times respectively. Maintain a "Buy" rating.

Risk hint

Downstream demand was lower than expected, and research and development fell short of expectations.