It covered the National Expo Electronics for the first time. The target price was 110.41 yuan, and the space was 37.62%, giving it an “increase in holdings” rating. Benefiting from the continuous increase in demand for active phased array radars spawned by the upgrading of various types of defense equipment such as land, sea, air, and sky, etc., the active phased array T/R components provided by the company will usher in a surge in demand. 5G has spawned a peak in base station RF device renewal, leading to a boom in demand for communication base station RF devices and chip-related products. The company's 2023-2025 EPS is expected to be 1.68/2.07/2.61 yuan, with a target price of 110.41 yuan, giving it an “increase in holdings” rating.
Active phased array radar has reached the mainstream trend, and the global military radar market will increase to 15.7 billion US dollars in 2025. Active phased array radar has been widely used in equipment such as missiles, aircraft, ships, etc., and has become the current mainstream trend in the development of radar technology. According to the “Global Military Radar Market 2015-2025” forecast published by Strategic Defense Intelligence, the size of the global military radar market will increase to 15.7 billion US dollars in 2025.
The performance of RFID module products was outstanding, contributing to the company's main revenue and profit. The top five manufacturers in the global RF integrated circuit market are all foreign manufacturers. In recent years, international trade frictions have been frequent, making import substitution the general trend, which to a certain extent has contributed to the sales and performance growth of the company's related products. From 2018 to 2022, the revenue of RFID module products increased steadily, and the share of revenue continued to grow, and the gross profit ratio was as high as 80%.
The military sector has a stable market position, and the civilian sector has excellent technical indicators. The company is the R&D and production platform for active phased array T/R components with the largest sales volume to domestic military industry groups. In the civil sector, the performance indicators of the main products of Guobo Electronics are already at the international advanced level.
Risk warning: The iterative progress of radar and other equipment has fallen short of expectations, and the 5G commercial process has fallen short of expectations.