CICT Mobile (SH:688387) Dongxing Securities·2024-08-19 10:30Investment Rating - The report maintains a "Recommended" rating for the company [3] Core Views - The company achieved a revenue of 2.992 billion yuan in the first half of 2024, a year-on-year decrease of 13.2%, but turned profitable in the second quarter with a net profit of 97 million yuan [1][2] - The decline in revenue is attributed to reduced demand from operators for network construction and a slowdown in 5G investment [2] - The company is expected to achieve slight revenue growth for the full year due to an increase in bid amounts and entering the order fulfillment period in the second half of the year [2] - Cost control measures have led to a decrease in expenses, with operating costs at 2.237 billion yuan and a gross margin of 25.3%, which is an increase of 0.1 percentage points year-on-year [2] - The company continues to invest in satellite internet research and development, with a total investment of 680 million yuan in the first half of the year, indicating strong innovation capabilities [2] Financial Forecasts - The company is projected to generate revenues of 8.433 billion yuan, 9.577 billion yuan, and 11 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding net profits of 6.29 million yuan, 131.13 million yuan, and 227.53 million yuan [3][7] - The price-to-earnings (PE) ratios are expected to be 2680X, 129X, and 74X for the same years [3][7]