Leading manufacturer of communication antennas, strong technical competitiveness, high customer quality. The company is an early domestic enterprise engaged in the field of mobile communication base station antennas. It has a strong R&D team. After more than 20 years of technology accumulation, it has certain technical research and development advantages in the field of communication antennas and RF devices. It has independent intellectual property rights in the core technology and key components of base station antennas, and is a scarce company in the industry that also has integrated design technology for base station antennas and filters. The company was the first in the industry to launch an AFU (integrated antenna filter) 5G large-scale MIMO solution. With leading R&D strength and product quality, the company has obtained certification from leading domestic and foreign communication operators and equipment integrators. 5G large-scale MIMO antennas are successfully connected to Ericsson, ZTE, Datang and Samsung base station systems; sheet metal filters are cooperated with Ericsson for mass production. The company's customers include China Mobile, China Telecom, China Unicom, Huawei, ZTE, Datang Telecom, Ericsson, Nokia, Samsung, Vodafone, etc.
5.5G is being deployed commercially, and the low-altitude economy is expected to become an important application scenario for integrated sensing, and the company's supporting antennas and other products are expected to benefit. On March 28, China Mobile launched the world's first commercial deployment of 5G-A. Synesthetic integration, one of the core innovations of 5G-A, is expected to become the core technology for digital control of the low-altitude economy. Compared with the significant increase in the number of antenna oscillators and filters in traditional 5G base stations and 5G-A base stations, the company has accumulated relevant technology in the field of 5.5G antennas and participated in the development of Huawei's 5.5G microwave antenna products. The 5.5G commercial process is expected to further enhance the company's performance.
The layout of the satellite communications field is constantly being improved. The company laid out the satellite communication field through the acquisition of Xi'an Xinghengtong in 2017. In early 2023, the company established a wholly-owned subsidiary “Chengdu Juji Millimeter Wave Technology Co., Ltd.” to develop satellite communication terminals, radar, millimeter wave and data link terminals and ground station products for special scenarios based on leading 5G large array antenna technology. In November 2023, the company established Tongyu Satellite Communications (Hubei) Co., Ltd. in Xianning, Hubei, to invest in the construction of a satellite communications industrial park. The related business covers sales of terminal products, satellite wireless routers, space-borne phased array antennas, and related communication equipment based on ground stations. Experimental samples for supply from national research institutes have been accepted, and ground station products are provided for low-orbit high-orbit satellites.
Profit forecast: Tongyu Communications is a leading manufacturer of communication antennas and RF devices in China. It is optimistic that the company's satellite communications and 5G-A antenna business will benefit from the high downstream boom and achieve relatively rapid growth. The company is expected to achieve revenue of 11.12/13.08/1,578 billion yuan in 2023-2025, and net profit of 0.74/0.83/124 million yuan, corresponding to EPS of 0.18/0.21/0.31 yuan. This is the first coverage, giving it an “increase in wealth” rating.
Risk warning: The promotion of the 5G-A industry falls short of expectations, and market competition intensifies.