Guobo Electronics (SH:688375) Soochow Securities·2024-08-28 18:30Investment Rating - The report assigns a "Buy" rating for Guobo Electronics (688375) for the first time [1] Core Views - The company faces intense external competition, leading to a significant decline in revenue and net profit in the first half of 2024, with revenue at 1.303 billion yuan, down 32.21% year-on-year, and net profit at 245 million yuan, down 20.77% year-on-year [2][3] - Despite the competitive environment, the company is focused on core business development and technological innovation, continuing to push forward with technology advancements [3] - The company has made significant investments in R&D, totaling 180 million yuan in the first half of 2024, representing 13.81% of revenue, and is working on domestic semiconductor technology projects [3] - The company has established a strong reputation in the downstream market, with products in the active phased array T/R components and RF integrated circuits gaining recognition and entering mass production [3] - Future growth prospects are promising, with ongoing development in low-orbit satellites and commercial aerospace, as well as significant supply in the domestic 4G and 5G mobile communication sectors [3] Financial Summary - The total revenue for 2022 was 3.461 billion yuan, with a projected decline to 3.249 billion yuan in 2024, followed by growth to 4.028 billion yuan in 2025 and 5.097 billion yuan in 2026 [2][7] - The net profit attributable to the parent company is forecasted to decrease from 606.23 million yuan in 2023 to 567.28 million yuan in 2024, before increasing to 735.60 million yuan in 2025 and 962.20 million yuan in 2026 [2][7] - The report predicts a P/E ratio of 39.91 for 2024, decreasing to 30.78 in 2025 and 23.53 in 2026, indicating a potential improvement in valuation as earnings grow [2][7] - The company’s cash flow from operating activities is expected to be 1.520 billion yuan in 2024, with a significant increase to 2.023 billion yuan in 2026 [8]