China Spacesat(SH:600118) Zheng Quan Shi Bao Wang·2025-09-09 05:10Core Viewpoint - The Chinese satellite industry is facing a complex and uncertain international environment, leading to challenges in performance despite a market-oriented and commercial transformation supported by policies and capital [1] Financial Performance - In 2023, the performance of China Satellite has shown signs of fatigue, with revenue and net profit declining for two consecutive years. In the first half of this year, the company reported a net profit loss of 30.49 million yuan despite a 28% year-on-year revenue increase [2][3] - The main revenue source, satellite manufacturing and application products, experienced a nearly 27% decline in gross profit in the first half of the year, with an expected 26.31% decline for the entire year of 2024 [2] - The company has recorded net profit losses in five quarters from early 2023 to the second quarter of 2025, with a net profit decline exceeding 450% in the first half of this year compared to the industry average decline of less than 50% [2] Cost Management - Since 2021, the growth rate of operating costs has consistently outpaced revenue growth. In 2024, revenue is expected to decline by 25.06%, while operating costs are projected to decline slightly less than 25% [5] - In the first half of this year, while revenue increased by 28%, operating costs surged by over 41%, indicating a lack of effective cost control [5][6] Debt Levels - The asset-liability ratio of China Satellite has remained above 40%, reaching 41.45% by the end of the second quarter of 2025, which is significantly higher than the industry average of below 35% [8] ESG Transparency - The company has room for improvement in ESG practices, particularly in environmental disclosures. The transparency of quantitative indicators related to climate change and greenhouse gas emissions has been notably low [10] - Employee numbers have decreased, with a total of 3,159 employees by the end of 2024, down by 260 from the previous year, and revenue per employee has dropped nearly 20% [10] Shareholder Returns - Although the cash dividend rate has increased in 2024, the company has never implemented a buyback since its listing, and its dividend rate of 27.48% is below the industry average of over 30% [11]