Revenue and profit both declined, and expenses continued to rise on the revenue side. The company's revenue for the 2023 3Q was 223 million yuan, an increase of 30.1% over the previous year, and the company's 2023 Q3 revenue was 85 million yuan, up 15.0% year on year, mainly due to downstream bidding and delays in company delivery.

On the cost side, the company's sales, management and R&D expenses for the first three quarters of 23 years were 1.72, 1.07 and 152 million yuan, up 29.8%, 27.1%, and 17.5% year on year, mainly due to 1) downstream customer development and business execution; 2) increased management expenses such as equity payments.

In terms of cash flow, the company's net cash flow from operating activities in the first three quarters of 23 years was -350 million yuan, down 29.5% year on year; net cash flow from investment activities was 5300 million yuan, up 69.1% year on year; and net cash flow from financing activities was 500 million yuan, up 371.0% year on year.

On the net profit side, the company's net profit for the first three quarters of 23 million yuan was 270 million yuan, down 19.2% year on year; net profit for Q3 in '23 was 0.8 billion yuan, down 1.0% year on year, mainly due to continued business development, but the pace of delivery and acceptance fell short of expectations.

The number of winning bids increased significantly year-on-year throughout the year, and I am optimistic about future performance

According to incomplete statistics, as of October 30, 2023, the company won a total of 36.28 million yuan in 23 years, or 583% of the bid volume for the full year of '22. The company announced the stock incentive plan on March 14, 2023. Among them, the revenue assessment targets for 2024-2026 are: based on 2021 revenue, corresponding to target revenue of 7.4, 9.9, and 1.19 billion yuan for 24-26; trigger values corresponding to 24-26 revenue of 6.6, 8.6 billion yuan, and 1.02 billion yuan, respectively. We believe that the company's current business situation still has great potential, focusing on delivery in the fourth quarter.

Investment advice

We expect Starlink to achieve revenue of 51/75/ 1.04 billion yuan in 2023-2025, respectively, an increase of 37%/47%/39% over the previous year; net profit of -2.0/-1.5/-0.9 (previous value -1.3/-0.5/0.17) billion yuan, an increase of 25.9%/21.7%/44.2% year on year. Maintain a “buy” rating.