Company incident: Recently, Hangzhou held a mobilizing conference for specialty, special and new famous cities. At the conference, enterprises that have obtained titles such as “Little Giant”, a national specialty, and new “Little Giant” were awarded licenses. 3D Communications won this honor and became a national specialized, special and new “little giant” enterprise.

Focus on key aspects of the radio frequency network industry, and high-quality satellite services form a new level of productivity.

The company focuses on the wireless communication market segment, achieves domestic substitutions for leading products in key links of the industrial chain supply chain, and is a leading enterprise with excellent quality and efficiency. Specifically, it is reflected in “Specialized” - focusing on professionalism. The company takes wireless radio frequency technology as the core, and has become a leading enterprise in excellent wireless communication network equipment and solutions. With the investment and construction of repeaters and passive rooms by domestic operators, the company continues to carry out iterative product upgrades and development work. In recent years, the communications equipment manufacturing industry has shown a trend of gradual increase in gross margin. “Refinement” - Striving for excellence. The company has passed certification requirements such as TL9000 and ISO14000 in the telecommunications industry quality system, and high product quality has helped the company gradually increase its market share. In addition, the company has a total of 311 invention patents, and many self-developed technologies have reached the international advanced level, and has been recognized as a “national innovative pilot enterprise” and “leading innovative enterprise in Zhejiang Province”. “Special” - Excellent characteristics. The company leads the optimization of wireless network coverage equipment, successfully solves the problem of “co-building and sharing” of wireless signal indoor coverage and communication infrastructure, provides a “last mile” overall solution for new infrastructure in the digital economy, and empowers the development of industry applications. “New” — led by innovation, in the face of insufficient network coverage of existing communication networks in places where human activity is scarce, such as deserts, seas, and skies, involving 3 billion people unable to achieve Internet coverage. The company's satellite business applications continue to innovate and expand. Haiweitong has provided broadband Internet services to thousands of satellite stations around the world, serving more than 40,000 crew users, and the number of cooperative merchant ships continues to grow. The company is expected to find market opportunities for satellite applications in more scenarios. Overall, the company's innovative business development is expected to exceed expectations with the strongest guarantee and enhanced subsidies to support the high-quality development of innovative enterprises.

Profitability is steady, cash reserves are abundant, and R&D innovation has enabled active expansion of domestic and foreign markets.

The company achieved revenue of 9,942 billion yuan/ +34.0% in the first three quarters, and achieved net profit of 95.1235 million yuan/ +7.61%. The company's performance maintained a good growth trend. The company's monetary capital reached 656 million yuan, and transactional financial assets were 302 million yuan. Overseas, the company has R&D centers in the US and Canada, and invests 10% of its revenue in R&D and innovation every year to continuously explore overseas market layout and accelerate the cultivation of new businesses. In addition, the company uses AIGC applications such as virtual live streaming rooms and robots that automatically generate creative materials to reduce live streaming costs and increase profitability. The company's R&D expenses in the first three quarters reached 119 million yuan/ +18.44%, accounting for more than 15% of the revenue in the communications sector, and deepened vertical applications based on the communications industry. The company has successively been tested and approved by high-end customers such as global operators, and the market space is expected to be further opened up.

Investment advice: The company recently used its own funds to repurchase the company's shares and is intended to implement the company's share incentives or employee stock ownership plans. We are optimistic about the company's future high growth and business development trends. Based on the company's latest performance, we gave the company a net profit forecast value of 160 million yuan, 194 million yuan, and 243 million yuan for 2023-2025, corresponding EPS of 0.20 yuan, 0.24 yuan, 0.30 yuan, corresponding PE of 33.33 times, 27.51 times, and 21.92 times, maintaining a “recommended” rating.

Risk warning: risk of exchange rate fluctuations; risk of rising raw material prices; risk of fluctuations in customer demand; risk of new product marketing falling short of expectations, etc.