Description of the event
On April 30, the company released the 2023 Annual Report and the 2024 First Quarter Report. According to the announcement, the company's revenue in 2023 was 3,567 billion yuan, up 3.08% year on year; net profit to mother was 606 million yuan, up 16.47% year on year. The company's revenue for the first quarter of 2024 was 693 million yuan, down 0.62% year on year; net profit to mother was 121 million yuan, up 4.22% year on year.
The company's products have made some progress in many fields
In terms of T/R components, the company is actively expanding the application field of T/R modules. It has carried out technology research and product development work in low-orbit satellites and commercial aerospace, and various products have already begun to be delivered to customers.
In terms of RF integrated circuits, in the field of mobile communication base stations, the main product performance of next-generation metal-ceramic-encapsulated GaN RF modules and molded PAM products in terms of linearity, efficiency, and reliability is comparable to the level of mainstream international products, and product coverage, variety, and technology have reached the level of advanced international manufacturers. The company's GaN RF modules are mainly used in 4G and 5G base station equipment, and are actively deploying 6G mobile communication applications. It is one of the few companies in the world with the ability to supply GaN RF modules in batches.
In the field of mobile communication terminals, Guobo Electronics has developed and completed RF amplification chip products such as WiFi and mobile phone PA, and the performance has reached the advanced level in China, and is also developing new products. In terms of RF control chips, the company mass-produces RF switches and antenna tuner products used in terminals. Multiple RF switches are introduced by customers and delivered in batches. DiFEM-related chips have begun mass production and delivery, and product performance has reached the advanced level in China.
The company has carried out technical research and product development work for various RF integrated circuits in the field of satellite communications, and various products have been introduced by customers. A variety of RF integrated circuits have been used in 5.5G integrated sensing base stations. The business demand for high-linear controller components used in next-generation smart antennas at base stations is strong, and product iterative development and new product development continues to be carried out in response to the development needs of 5.5G communication. RF front-end modules for drones were shipped in batches, and the next generation of high-performance RF front-end modules have completed sample development. The company will continue to increase investment in R&D to continuously improve the performance and quality of products to meet market demand. At the same time, the company will also pay close attention to the latest developments and technology trends in the industry, adjust the company's strategic direction in a timely manner, and ensure that we maintain our competitive advantage in market competition.
Investment advice
According to the 2024 quarterly report, we adjusted the profit forecast. The company's net profit for 2024-2026 is expected to be 696 million yuan, 841 million yuan, and 1,011 million yuan (2024/2025 pre-2025 value was 828 million yuan/1,078 million yuan), respectively, with year-on-year growth rates of 14.8%, 20.9%, and 20.1%. Corresponding PE was 42.17, 34.88, and 29.03 times, respectively. Maintain a “buy” rating.
Risk warning
Downstream demand fell short of expectations, R&D fell short of expectations, and capacity release fell short of expectations.