Actively lay out core businesses such as satellites to achieve more growth. The company is committed to making efforts in the fields of smart transportation, safe cities, intelligent manufacturing, electronics manufacturing, etc. Judging from the growth in business, there are currently three major highlights. 1) Beidou Satellite: The company has low-orbit satellite mobile communication technology, which can be widely used in the Internet of Things, machinery/vehicles/ships, etc.

In 2023, the company joined forces with Southeast University, Xingsi Semiconductor and other organizations to establish the “Low Orbit Satellite Internet Terminal Industry Chain Alliance” to conduct research on next-generation satellite communication terminals. In addition, Panda Communications won the bid for the next-generation satellite terminal project, with a bid amount of more than 9 million yuan. 2) Robots: The company mainly develops controller technology, offline programming technology and vision technology. Servo systems are mainly purchased. The products are mainly industrial robots, which are used in integrated services for intelligent manufacturing system equipment. As of November 2023, the company has sold more than 90 sets of industrial robots, with a contract amount of about 8 million yuan. 3) Brain-computer interface: “Research and development of key technologies for multi-modal human-computer interaction system integration based on brain-computer interface technology”, led by the company's Ministry of Planning and Technology, was successfully selected as the 2022 Jiangsu Key R&D Plan industry outlook and key core technology project.

The precision card satellite terminal market continues to be deeply cultivated to open up room for long-term growth. 1) Strategic layout in the field of satellite terminals. The company's next-generation satellite communication terminal projects include software and hardware products, which support satellite communication between terminals, and are used in mobile phones, vehicles, ships, airborne, etc.; the subsidiary Panda Communications develops and produces timing products, which are manufactured by purchasing Beidou modules for assembly; and the subsidiary Jinghua Electronics develops and produces automotive satellite navigation products, mainly using the ODM model for export. 2) Winning bids for important projects shows one's strength. The company took the lead in establishing the “Low Orbit Satellite Internet Terminal Industry Chain Alliance”; the subsidiary Panda Communications won the bid for the next-generation satellite terminal project with a bid amount of more than 9 million yuan. The device can support satellite communication between terminals, which is a key step for the company in the field of next-generation satellite communication. 3) An important strategic cooperation has been reached with Xingsi Semiconductor, and long-term potential can be expected. Shanghai Xingsi Semiconductor focuses on 5G/6G communication technology to provide customers with full-scene integrated space-ground baseband chips and solutions. The first 5gemBB baseband chip CS6810 was successfully streamed at the end of 2022, and the broadband satellite phone baseband chip CS7610 and the ultra-wideband satellite terminal baseband chip CS7810 were launched in early 2023. At the same time, Samsung Semiconductor launched the Everthink 76106G broadband satellite baseband chip platform, Everthink 7810 6G ultra-wideband satellite baseband chip platform, and satellite communication solutions.

Investment proposal: The company has a comprehensive layout of the low-orbit satellite Internet terminal industry, and the next-generation satellite communication terminal project can support satellite communication between terminals, covering technical scenarios such as mobile phones, vehicles, ships, airplanes, etc.; at the same time, it has reached a strategic cooperation with Shanghai Xingsi Semiconductor, which focuses on the development of 5G/6G satellite communication baseband chips. With the continuous improvement of satellite internet infrastructure, the vast blue ocean market can be expected in the future. The company is currently in a transition period to lay out new services such as satellite internet. Therefore, it is mainly examined. The company's revenue for 2023-2025 is estimated to be 34/39/43 billion yuan. The corresponding PS is 3X, 3X, and 3X, respectively, covered for the first time, and given a “recommended” rating.

Risk warning: the risk of increased competition in the industry; the advancement of new technology falls short of expectations; the recovery of industry demand falls short of expectations.