Chengchang Technology(SZ:001270) Shanxi Securities·2024-08-29 03:15Investment Rating - The report maintains a "Buy-B" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index [2][6]. Core Views - The company's performance in H1 2024 has been under pressure due to the rhythm of downstream orders, but a demand turning point is gradually approaching [2][3]. - The company reported a revenue of 72 million yuan in H1 2024, a year-on-year decrease of 56.55%, and a net profit attributable to shareholders of -24 million yuan, a year-on-year decrease of 137.58% [1][3]. - The company is focusing on maintaining strong partnerships with research institutes and related enterprises, continuing to iterate satellite communication TR chip solutions, and expanding its product lines in ground and airborne sectors [1][3]. Financial Performance - The company’s revenue for 2024 is projected to be 279 million yuan, a decrease of 3% year-on-year, with net profit expected to be 76 million yuan, down 4.4% year-on-year [3][4]. - The gross profit margin is expected to decline to 59.2% in 2024, down from 62.3% in 2023 [3][5]. - The company’s inventory and work-in-progress have increased by 26% and 41% respectively compared to the beginning of the year, indicating positive downstream order guidance [1][3]. Market Position and Outlook - The company is well-positioned in the satellite industry, with a solid market position as one of the few private enterprises capable of providing complete and advanced T/R chip solutions [1][3]. - The report anticipates a significant growth in the domestic satellite industry between 2025 and 2026, driven by the simultaneous development of remote sensing and low-orbit satellite constellations [1][3]. - The company is expected to see a recovery in demand in H2 2024, with concentrated deliveries anticipated based on production plans [1][3].