CICT Mobile (SH:688387) Tianfeng Securities·2024-08-21 00:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of 10%-20% over the next six months [6]. Core Insights - The company achieved a turnaround in the second quarter of 2024, reporting a net profit of 97.17 million yuan, compared to a loss of 110 million yuan in the same period last year [1]. - Despite a slowdown in operator investments, the company increased its market share and bidding amounts, leveraging its technological advantages in various sectors including transportation and energy [2]. - The company is a key player in the 5G-A construction, securing major contracts and maintaining a leading position in the industry [3]. - The company is actively investing in 6G, 5G-R, and satellite communication technologies, with a focus on user-centric and autonomous network solutions [4]. Financial Performance Summary - For the first half of 2024, the company reported revenues of 2.992 billion yuan, a decrease of 13% year-on-year, while the net loss was reduced to 61.41 million yuan, improving by 11.60 million yuan [1]. - The projected net profits for 2024-2026 are 0.6 million yuan, 20.6 million yuan, and 33.7 million yuan respectively, reflecting a downward adjustment from previous forecasts [4]. - The company's revenue for 2024 is expected to be 7.854 billion yuan, with a growth rate of only 0.08% [5]. Market Position and Strategy - The company has a strong foothold in the satellite internet sector, with early advantages in technology and market presence [2]. - It is involved in the formulation of standards for 5G-R in the railway sector and has achieved significant milestones in satellite communication technology [4]. - The company is focusing on enhancing its organizational performance and improving development quality to counteract the impact of macroeconomic factors [1].