CATEC(SH:600879) Xin Lang Cai Jing·2025-10-18 00:29Core Viewpoint - Aerospace Electronics (600879) is a high-tech listed company under China Aerospace Science and Technology Corporation, focusing on aerospace electronic measurement and control, electronic countermeasures, guidance, and electronic components, with a projected revenue of 14.28 billion in 2024, reflecting a decrease of 23.7% [1] Group 1: Financial Performance - In 2024, the company is expected to generate a revenue of 14.28 billion (-23.7%) and a net profit attributable to shareholders of 548 million (+4.4%) [1] - For the first half of 2025, the company anticipates a revenue of 14.28 billion (-24.5%) and a net profit of 174 million (-30.37%) [1] - The revenue from aerospace military products in the first half of 2025 is projected to be 5.783 billion (+0.65%), with a gross margin of 20.42% (-1.71 percentage points) [1] Group 2: Investment Logic - The company is positioned as a leader in aerospace electronic information systems and is expected to benefit from the booming satellite internet and commercial aerospace sectors [2] - The company has developed a series of inertial navigation systems and is poised to benefit from the increase in guided weapon production and the growth of commercial aerospace [2] - The company has made significant advancements in laser communication terminals, preparing for mass production to capitalize on the acceleration of satellite internet construction in China by the second half of 2025 [2] - The commercial rocket development in China is thriving, and the company's aerospace measurement and control business is expected to benefit significantly [2] - The company is embracing the trend of unmanned and intelligent equipment development, with a comprehensive product lineup in drones and related systems [2] Group 3: Asset Restructuring and Value Enhancement - The company is actively shedding inefficient assets, having completed the transfer of 51% of its subsidiary Aerospace Electric in August 2024, which is expected to enhance profitability [3] - The company plans to engage in asset swaps to improve its value, with a preliminary estimate of the incoming assets' book value ranging from 800 million to 1 billion [3] Group 4: Profit Forecast and Valuation - The company forecasts revenues of 15.336 billion, 19.307 billion, and 24.112 billion for 2025, 2026, and 2027, respectively, representing year-on-year growth rates of 7.4%, 25.9%, and 24.9% [4] - The net profit attributable to shareholders is projected to be 586 million, 815 million, and 1.075 billion for the same years, with growth rates of 7.0%, 39.0%, and 31.9% [4] - The company is assigned a target price of 14.82, based on a 60x PE ratio for 2026, reflecting its leadership in aerospace electronic information systems and unmanned equipment [4]