The target price is 17.44 yuan, maintaining the “gain” rating
Radio and Television Measurement released its annual report. In 2023, it achieved revenue of 2,889 million yuan (yoy +10.94%), net profit to mother of 199 million yuan (yoy +8.39%), and deducted non-net profit of 174 million yuan (yoy +78.93%). Among them, Q4 achieved revenue of 926 million yuan (yoy -1.94%, qoq +26.43%) and net profit to mother of 666.206 million yuan (yoy -38.80%, qoq -8.25%). The company plans to pay an annual dividend of 0.15 yuan per share, with a dividend ratio of 43.3%, corresponding to a dividend rate of 1.0%. We expect the company's 2024-2026 EPS to be 0.51, 0.64, and 0.78 yuan respectively. Comparable to the 2024 Wind, the average PE is expected to be 28.5 times. Considering that the low altitude economy track has a clear first-mover advantage and high performance flexibility in 2024, the 2024 performance is more flexible. It gives 2024 34.2 times PE, with a target price of 17.44 yuan (previous value of 14.94 yuan), maintaining the “increase” rating.
Revenue from advantageous businesses continues to grow, and food/environmental revenue is under pressure
By business sector, 1) Measurement: revenue of 718 million yuan, +18.8% year over year, significant increase in human efficiency; 2) Reliability and environmental testing: revenue 663 million yuan, +8.2% year over year, gross margin +2.2pp to 43.5% year over year; 3) Electromagnetic compatibility: became an automotive chip solution verification agency, revenue +11.3% to 329 million yuan, gross margin -2.3 pp to 50.9% year over year; 4) Integrated circuit testing: revenue of 34.2% to 2.02.02 million yuan Gross profit margin 40.9%; 5) Chemical/food/environmental testing: revenue of 1.70/1.54/161 million (YoY +12.2/-14.5/ -9.6%), gross margin 43.7/24.7/ 23.6% (YoY +2.3/+10.2/+2.1pp).
Accelerate the layout of a new “low-altitude economy” track
Since 2013, Radio and Television Metrology has provided testing support services for drone products. The company participated in the preparation of the “Unmanned Helicopter Electromagnetic Compatibility Airworthiness Verification Guidelines”, and has deployed test capabilities in aviation and low-altitude economic industrial clusters such as Guangzhou, Wuxi, Shanghai, Beijing, Xi'an, and Chengdu. The Radio and Television Measurement Drone Training Center has been approved by the State Civil Aviation Administration (CAAC) and issued an operating license. It is a training unit certified by the China Civil Aircraft Owners and Operators Association (AOPA). It focuses on three major businesses:
The Civil Aviation Administration's drone driver's license and application skills training, application inspection services in various industries, and drone airworthiness forensics services. It will continue to improve technical service capabilities and promote the development of low-altitude economic industrial chains in various regions.
Approved by Ford Motor Company and Great Wall Motor's third party laboratory
Radio and television metrology has comprehensive technical capabilities in the field of integrated circuits and SiC, and has completed the verification of hundreds of types of chips, including MCU, AI chips, and security chips. The company provides testing and certification services for companies such as Rongxi Semiconductor, Xinjin Electronics, Shenzhen Guoxin, and Nanrui Semiconductor. It has AEC-Q and AQG324 full service capabilities in the field of vehicle regulations, and has been recognized by nearly 50 car manufacturers. On February 1, the company obtained Ford Motor's FMC1278 Rev 4 full inspection test global certification, and Great Wall Motor's EMC and electrical performance inspection certification.
Risk warning: Business development falls short of expectations, order execution progress falls short of expectations, asset impairment losses exceed expectations.