A leading company in the global mobile communications field, with continuous improvement in operations
The company is the only high-tech enterprise controlled by a central enterprise engaged in international standard setting, core technology development and industrialization of mobile communications. Its products mainly include mobile communication network equipment and mobile communication technology services. Datang Mobile and Hongxin Communications jointly reorganized to establish CITIC Mobile Communication Technology Co., Ltd., and then successfully listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange in September 2022. As China's 5G construction progresses steadily, revenue has grown steadily and losses have continued to decrease.
The share of domestic new construction continues to rise, and overseas revenue continues to grow rapidly. The company has been carrying out research on 5G standards and basic technology since 2011. It is one of the main undertakers of 5G technology projects in the country, and has led or independently undertaken 5 6G projects of the Ministry of Science and Technology. By the end of 2022, the company's 5G proposal contributed 3.89%, ranking 7th. In 2020, China Mobile's 5G wireless main equipment procurement accounted for only 2.62%, while the combined bid share of 5G 700M and 2.6G/4.9G base station procurement tenders from 2023 to 2024 was over 7%. In recent years, thanks to the “Belt and Road” policy, the company has accelerated the construction of an international marketing system. In 2022, international business revenue increased by more than 100% year-on-year. In the future, the company is expected to use the Group's overseas business platform, Fenghuo International, to create more incremental space for its subsequent business development.
The mobile communication technology service business is at the forefront of the country
The company's integrated mobile communication service mainly consists of three parts: wireless network planning, wireless network construction, and wireless network optimization. As of September 2022, the company has branches, representative offices and technical support centers in 31 provinces, cities and autonomous regions across the country. According to 7 non-telecom operator companies in the first half of 2018-2021, the company ranked third, with a comprehensive market share of about 2.31%, second only to Zhongbei and Runjian.
Deeply participate in the low-orbit satellite Internet, promote domestic and foreign standards, the Earth's low-Earth orbit can accommodate about 60,000 satellites, and countries around the world are speeding up the construction of low-orbit satellite networks. The company is deeply involved in the construction of China's low-orbit satellite Internet. It has the ability to provide a full range of products and technical services such as communication payloads, communication stations, core networks, network management, and test instruments, and is actively expanding the civil satellite Internet market. The company established a satellite-terrestrial fusion laboratory, published a white paper, and vigorously promoted the formulation of 5G NTN standards at home and abroad.
Profit forecasting and investment advice
Net profit due to mother in 2023-2025 is estimated to be -287 million yuan, 61.71 million yuan, and 482 million yuan respectively, up 57%, 121%, and 682% year-on-year respectively. We believe that the domestic share of the company's mobile communication equipment has increased, and the overseas loan group platform has achieved rapid growth. At the same time, the company is deeply involved in low-orbit satellite Internet construction, which can provide rich products, and there is a possibility of rapid growth in the future. Covered for the first time, a “gain” rating was given.
Risk warning: the risk of not being profitable; the risk of a large gap compared to leading international companies; the risk of high customer concentration; the risk that the 5G application business model is not yet mature.