Introduction to this report:
The company's 2023 performance was slightly lower than expected. The introduction of new products downstream of the company accelerated, the product matrix was constantly being enriched, while actively expanding application scenarios, and its market share increased steadily.
Key points of investment:
Maintain an increase in holdings rating. Considering the short-term decline in the company's downstream demand, the performance was slightly lower than expected. EPS in 2023-25 was lowered to 1.04/1.36/1.74 yuan (originally 1.36/1.84/2.42 yuan), referring to the 2024 industry PE 36.69 times, giving 2024 PE 36 times, and lowering the target price to 48.96 yuan to increase holdings.
The performance was slightly lower than expected: the company released its 2023 performance report. In 2023, the company achieved revenue of 255 million yuan (+15.08%), net profit of 87 million yuan (+7.19% year over year); achieved revenue of 87 million yuan (-10.07% year over year) in a single quarter, and net profit of 34 million yuan (-24.23% year over year).
The product matrix continues to be rich, and the introduction of new products is accelerating. The company's R&D investment continues to grow rapidly, and the comprehensive performance and functions of wireless channel simulator products continue to iterate. As the complexity of R&D requirements in various downstream fields continues to increase, the company's shipments of high-performance model products continue to grow. Products such as RF microwave signal generators have become more mature, and new spectrum/vector signal analyzers are gradually being tested and tested by downstream users, and certain orders have been formed. The product matrix continues to be enriched, and the comprehensive capabilities of the industry's system-level test and simulation solutions are steadily improving.
Actively expand downstream application fields, and the market share is steadily increasing. The application scenarios of the company's wireless channel simulator products continue to be enriched, gradually forming important breakthroughs in markets such as satellite communications and semiconductors. At the same time, products such as RF microwave signal generators continue to be recognized by downstream users. At the same time, the company's system-level solutions have obvious advantages. They have expanded from radio testing and simulation to solutions such as analog training and electromagnetic environment digital twins to meet the testing and simulation needs of customers in different scenarios.
Risk warning: New product development falls short of expectations; domestic substitution process falls short of expectations.