Description of the event

On August 25, the company released its 2024 semi-annual report. According to the announcement, the company's revenue for the first half of 2024 was 1.303 billion yuan, down 32.21% year on year; net profit to mother was 0.245 billion yuan, down 20.77% year on year.

The company continues to promote technological innovation

In the first half of 2024, facing pressure from the external environment, the company was guided by national strategies and market needs, always focusing on main business development and core technological innovation, continuing to promote technological innovation, and enhancing the ability to meet different applications and needs.

In the field of T/R components, the company continues to carry out relevant key technical research, actively promote commercialization technology for heterogeneous integration technology, and lay the foundation for next-generation product development. In addition, the company actively expands the application field of T/R components, and has carried out technology research and product development work in low-orbit satellites and commercial space. Currently, various products have begun to be delivered to customers; in the RF module field, the company released a variety of GaN RF module products in the first half of the year. It is expected that in the future, the company will continue to advance research on new technologies to improve the linearity and efficiency of products; in the field of RF chips, the company actively promotes the development of products based on Product development work for new semiconductor processes is actively promoting ODU and satellite communication chip development and promotion in new fields and new customers. Some products have already entered the customer certification stage.

Investment advice

According to the 2024 semi-annual report, we adjusted the profit forecast. The company's net profit for 2024-2026 is 0.587 billion yuan, 0.743 billion yuan, and 0.944 billion yuan (the value before 2024/2025/2026 was 0.696 billion/ 0.841 billion yuan/1.011 billion yuan), with year-on-year growth rates of -3.2%, 26.5%, and 27.2%, respectively. Corresponding PE was 39.00, 30.84, and 24.25 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.