The three-quarter report was released on October 28, 2023. From the beginning of the year to the end of the reporting period, the company achieved revenue of 2.266 billion yuan, an increase of 2.37 percent over the same period last year, and net profit of 308 million yuan, an increase of 2.06 percent over the same period last year. Basic earnings per share and diluted earnings per share were both 0.40 yuan per share, an increase of 2.56 percent over the same period last year.

Corporate governance continued to improve, hedging against the downward pressure of gross profit margin, net interest rate rose instead of falling. In the first three quarters of 2023, the company's gross profit margin was 44.41%, which was 14.22% lower than that of the same period last year, while the net profit margin was 14.22% higher than that of the same period last year. The gross profit margin decreased, but the net profit margin continued to pick up compared with the same period last year. From the expense side, the expense rate during the sales period of the company in the first three quarters of 2023 was 30.84%, which was lower than that of the same period last year, reflecting the remarkable progress made by the company in reducing costs and increasing efficiency, and the level of management has been improved.

Some of the company's products are used in the field of satellite communications and satellite navigation, and are expected to continue to benefit from the accelerated development of the Beidou industrial chain. The company said publicly on the investor platform that the products include a certain frequency band satellite communication equipment, a certain Beidou 3 satellite navigation equipment, Beidou 3 precision approach ground equipment, navigator, portable differential Beidou take-off and landing guidance equipment and other equipment. Recently, the relevant responsible person of the Ministry of Industry and Information Technology made it clear that "it will actively expand the application of Beidou in industrial Internet, Internet of things, vehicle Internet and other emerging fields." it is expected that with policy support, all parties may speed up the layout of the field of Beidou. The company's satellite communications business is expected to become a new growth pole.

[investment advice]

Combined with the current operating situation of the company, we adjust the profit forecast. It is estimated that the operating income of the company from 2023 to 2025 will be RMB 4.707max 56.20max RMB 6.881 billion, the net profit belonging to the parent company is RMB 1.31max 1.24max RMB 1.386 million, the EPS RMB 1.21pm 1.46max RMB 1.80 respectively, and the PE is respectively times that of 22-18-15. We believe that as the main supplier of domestic military wireless communication equipment, the company's traditional military business remains stable, while deeply participating in the domestic Beidou satellite communications chain, the company continues to expand its new business and maintains the company's "overweight" rating.

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