The listing platform for the China Telecom Communications sector maintains the “buy” rating company as the listing platform for the China Telecom Communications sector, and is a leading domestic special printed circuit board manufacturer, rail transit private network communication supplier, and independent third-party communications planning and design institute. We believe that the company's moat is stable and is expected to benefit from the increase in industry prosperity. We maintain our original profit forecast. We expect the company's net profit from 2023-2025 to be 2.46, 2.83, and 327 million yuan, respectively, and EPS of 0.36, 0.41, and 0.48 yuan/share, corresponding to the current stock price PE, 63.8, 55.6, and 48.1 times, respectively, maintaining the “buy” rating.
Event: The company released its 2023 three-quarter report. Short-term performance fluctuations In the first three quarters of 2023, the company achieved operating income of 3.887 billion yuan, a year-on-year decrease of 6.36%; realized net profit of 64 million yuan, a year-on-year decrease of 46.98%.
Satellite Internet is a sea of stars, and the company is expected to ride the wind
According to Interactive Easy, the company will actively plan and rely on the electronics group's technology accumulation in satellite Internet, continue to follow up and participate in related business in the field of satellite communication, and actively participate in standards and technology research related to satellite Internet.
In addition, the thermostatic crystal oscillators developed and produced by Far East Communications, a subsidiary of the company, can be applied to satellite communications and other fields; the current business of the subsidiary Electric Navigation involves Beidou short message terminals and communication services, and Beidou short messages can provide satellite data communication services. We are optimistic about the company's business layout in the field of satellite communications and the empowerment of the Electronics Technology Group, which is expected to benefit from the development of satellite Internet.
Intelligent manufacturing: Market segmentation remains leading, and industry expansion is worth looking forward to. The company is a large-scale, technology-leading domestic PCB manufacturer for models, express shipments, and high-end special fields.
In the first half of 2023, the company's market share in aerospace and other special fields continued to remain stable. In the future, it is optimistic that the company will further consolidate its dominant position in PCB business in special fields. In addition, customer demand for automobiles and rail transit, which the company laid out ahead of schedule, has also increased significantly, which is expected to lead to a considerable increase in performance.
Risk warning: Downstream investment falls short of expectations; increased market competition risks; company R&D falls short of anticipated risks.