A listed platform in the China Telecom Communications sector, maintaining a “buy” rating

We maintain our original profit forecast. The company's net profit for 2023-2025 is 0.37, 2.31, and 323 million yuan, respectively, and EPS is 0.05, 0.34, and 0.47 yuan/share, respectively, corresponding to the current PE price, which is 460.8, 73.0, and 52.1 times, respectively. The company is a listed platform for China's telecommunications sector, which is expected to benefit from the satellite Internet and the blue ocean of the low-altitude economy, and maintain a “buy” rating.

Event: Signed a strategic cooperation agreement with Western Electric

On April 11, the company announced that it signed a strategic cooperation agreement with Xi'an University of Electronic Science and Technology. Facing the development needs of satellite Internet and low-altitude economy industries, the company decided to form a deep, comprehensive long-term strategic partnership to jointly establish a “Xidian-Putian Technology (Universal Integrated Information Network) Joint Laboratory” by integrating their respective advantages in terms of resources, technology, talents, and platforms. The Joint Laboratory focuses its work in the direction of ubiquitous information networks. It further deepens cooperation in the fields of production, learning, research, and application integration, carries out technical research, academic exchanges, and talent training work, and jointly promotes the development of the Tiandi Integrated Ubiquitous Information Network industry.

The ISN National Heavy Duty Office has deep accumulation in the field of aerospace information and communication, and is expected to deeply empower the company's growth. According to the laboratory's official website, the “National Key Laboratory of Space and Earth Integrated Business Network (ISN National Key Laboratory)”, it has broken through aerospace intelligent information processing and transmission technology, solved the urgent needs of information transmission and services in major national projects such as next-generation wireless communication systems, manned space, deep space exploration projects, etc., and entered the first batch of construction lists of national key laboratories in the field of information technology in 2022. It has deep technical accumulation in the field of network communication, which is expected to empower the company to upgrade its product technology.

Realize strong alliances to lay out satellite internet and low-altitude economy

The joint laboratory will focus on integrated ubiquitous information networks. The two sides will carry out joint research and cooperation in the direction of intelligent networking architectures, terminal development, system platforms and industry applications, jointly develop related products, and establish a comprehensive academic exchange, knowledge training, and technical guidance cooperation mechanism. We are optimistic that cooperation between the two sides is expected to share high-quality resources between the two sides, use mutual advantages to achieve cooperation and development in scientific and technological innovation, transformation of achievements, and talent training, and help the company innovate and upgrade its products and land in the industry.

Risk warning: Industry implementation falls short of expectations; market competition increases risk; company R&D falls short of expectations risk.