FIBOCOM(SZ:300638) Haitong Securities·2024-07-30 04:01Investment Rating - The investment rating for the company is "Outperform the Market" [17] Core Views - The company has sold its overseas vehicle-mounted communication module business for USD 150 million to maintain stable development amid complex international circumstances. This sale is expected to avoid significant goodwill impairment risks and improve cash flow [7][8] - The domestic vehicle-mounted business is performing well, with profitability gradually improving in 2023. The company is also expanding into AI and robotics sectors, indicating a positive outlook for future growth [8][9] Financial Performance Summary - Revenue for 2023 is projected at CNY 7.716 billion, with a year-on-year growth of 36.7%. Expected revenues for 2024, 2025, and 2026 are CNY 8.292 billion, CNY 8.687 billion, and CNY 10.673 billion respectively [10][12] - Net profit for 2023 is estimated at CNY 564 million, with projections of CNY 709 million for 2024, CNY 606 million for 2025, and CNY 775 million for 2026. The net profit growth rates are 54.5% for 2023 and 25.8% for 2024, followed by a decline in 2025 [10][12] - The company’s EPS is expected to be CNY 0.74 in 2023, CNY 0.93 in 2024, CNY 0.79 in 2025, and CNY 1.01 in 2026 [10][12] Business Segmentation - The wireless communication equipment segment is projected to generate revenue of CNY 7.511 billion in 2023, with a growth rate of 35.4%. The segment is expected to continue growing, reaching CNY 9.982 billion by 2026 [11][12] - Other business segments are expected to see significant growth, with revenue projected to increase from CNY 204.76 million in 2023 to CNY 691.08 million by 2026, reflecting a growth rate of 106.99% in 2024 [11][12] Valuation Metrics - The company is assigned a PE range of 20-25 for 2025, translating to a reasonable value range of CNY 15.83 to CNY 19.78 [9][12] - The average PE for comparable companies is noted to be 30, indicating potential undervaluation of the company relative to its peers [11]