Incidents:
The company released its semi-annual report in August 2023, and achieved revenue of 134 million yuan in the first half of the year, an increase of 21.81% over the previous year. Net profit for the return was 111 million yuan, an increase of 27.78% over the previous year, and basic earnings per share were 0.22 yuan.
The number of customers in the electromagnetic field simulation analysis and verification business continues to increase
During the reporting period, the company further expanded digital radar simulation modules based on complex electromagnetic environment applications. By simulating radio frequency links, signal processing links and data processing links, it accumulated a rich library of RF device models and multi-resolution radar models; by connecting to complex electromagnetic environment platforms, it carried out battlefield-level complex electromagnetic inference and system-level performance evaluation, providing comprehensive solutions for radar system designers. At this stage, the number of customers and potential customers of the company's core product, the 3D electromagnetic simulation software RDSim, continues to increase, and is being used in aerospace, shipping, universities and other related organizations.
The electromagnetic measurement system business has seized market opportunities and expanded applications in the satellite field. During the reporting period, the company has shortened the delivery cycle and improved delivery capacity. The types of products delivered include phased array calibration and measurement systems, radar scattering cross-sectional area measurement systems, and radio frequency measurement systems.
In terms of market development, the company's satellite-oriented electromagnetic measurement system business has achieved positive results, and the satellite-oriented electromagnetic measurement system business (including phased array calibration and measurement systems and radio frequency measurement systems) has achieved rapid growth in orders.
R&D investment continues to increase
The company continues to step up research and development efforts. During the reporting period, the company's R&D expenses were 210 million yuan, 16.29% over the same period; the number of R&D personnel increased to 81, an increase of 18 over the same period last year; and employee remuneration was 115 million yuan, an increase of 58.48% over the same period last year, a significant increase. The company has 6 research projects, including low-orbit satellite detection and radar simulation. The company invested 21 million yuan during the reporting period, indicating that the company is actively improving its R&D capabilities, which is conducive to future long-term development.
Profit Forecasts, Valuations, and Ratings
We expect the company's operating income for 2023-2025 to be 4.59/6.14/795 million yuan, the corresponding growth rate is 36.45%/33.89%/29.36%, the net profit of the returned mother is 0.70/0.99/139 million yuan, the corresponding growth rate is 39.46%/40.27%/40.79%, EPS is 0.97/1.36/1.91 yuan/share, and the 3-year CAGR is 40.26%. Referring to comparable companies, the company was given 60 times PE in 2023, with a target market value of 4.218 billion yuan and a corresponding stock price of 57.99 yuan, maintaining the “increase in holdings” rating.
Risk warning:
Downstream demand falls short of anticipated risks; new product development falls short of anticipated risks; industry competition heightens risks.