The company released its first quarterly report for 2021 on the evening of April 29. In the first quarter of 2021, the company achieved operating income of 584 million yuan, down 4.06% from the same period last year; net profit of 104 million yuan, up 19.75% from the same period last year; and other income of 22.79 million yuan, an increase of 18.05 million yuan over the same period last year, mainly from the confirmation of increased income such as compensation and tax subsidies for extended C-band satellite transponders. Projects under construction totaled 1.336 billion yuan, an increase of 1.222 billion yuan over the same period last year, mainly due to increased investment in satellite construction in future launch plans.
Domestic communications satellite operation industry leader, will increase the plan to enhance the core strength. The company is the only basic telecom operator with independent controllable commercial communication and broadcasting satellite resources in China, and has an absolute competitive advantage in the domestic market. The company currently operates 15 communications satellites, including 2 high-throughput satellites, and is expected to launch at least six new satellites between 2021 and 2023. The company has issued a plan to raise no more than 3.3 billion yuan for three of the newly launched satellites.
Satellite Internet has been incorporated into the new infrastructure, and the company has developed marine and aviation Internet services. The National Development and Reform Commission has made it clear that satellite Internet will be included in the scope of the new infrastructure, and top-level design will promote the development of the industry. The company has its own high-throughput satellite resources and actively develops ocean and aviation Internet business, shipborne platform realizes Ka+Ku resources fusion networking operation, launches "Hangxing Tong" APP 2.0 version, optimizes video surveillance and other application capabilities; and space investment to form a professional subsidiary of Star Interconnection, which provides aviation Internet, and completes the maiden voyage of China's first Ka-band broadband satellite Internet aircraft.
China's aviation Internet penetration rate is only 5%, which is far lower than the 80% penetration rate of the United States, and the domestic market is vast. In the future, marine and aviation Internet business will become an important growth point for the company's performance.
The high-definition satellite radio and television market is full of new vitality. Satellite radio and television is an important application field of satellite communications. The upgrading of high-definition programs will put forward higher requirements for satellite communication capacity and make the market coruscate new vitality. The company has started the replacement star project of Zhongxing 6A, 6B and 9A in the C/Ku band, which will better meet the needs of future radio and television users to carry out high-definition and ultra-high-definition program transmission and promote business growth.
Profit forecast: the company's operating income in 2021-2023 is expected to be 27.65,28.75 and 3.048 billion yuan, the net profit returned to the parent is 5.55,6.16,678 million yuan, EPS 0.14,0.15,0.17 yuan, and the corresponding share price EV/EBITDA is 30.90,29.69,28.39 times. As a leader in the domestic communications satellite operation industry, the company has maintained a "buy" rating with a six-month target price of 20 yuan, benefiting from high-throughput satellite development and satellite Internet business development.
Risk tips: systemic risk, the risk of falling prices due to intensified competition in the international market, the risk of lower-than-expected high-throughput market expansion, satellite launch failure or major failure in orbit.