PIESAT(SH:688066) HTSC·2024-09-01 06:03Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 19.89 [1][4]. Core Views - The company's revenue continues to face pressure year-on-year, with a reported revenue of RMB 843 million for H1 2024, down 17.66% year-on-year. The net profit attributable to the parent company was a loss of RMB 185 million, a significant decline of 1798.65% year-on-year [4]. - The report anticipates a gradual recovery in revenue growth driven by projects in constellation construction, low-altitude economy, and overseas expansion. The earnings per share (EPS) estimates for 2024-2026 are adjusted to RMB 0.39, RMB 0.82, and RMB 1.62 respectively [4][8]. - The company has seen a significant decline in its space infrastructure planning and construction revenue, which fell by 88.44% year-on-year, while the PIE+ industry business revenue increased by 21.06% year-on-year, indicating a faster commercialization pace in sectors like meteorology and emergency response [5]. - The overseas business is expected to open up new revenue growth opportunities, with recent contracts signed in Bolivia and Pakistan, and the establishment of branches in multiple countries [6]. - The integration of AI with remote sensing technology is anticipated to create competitive advantages for the company's products, enhancing its capabilities in data analysis and knowledge extraction [7]. Summary by Sections Financial Performance - H1 2024 revenue was RMB 843 million, down 17.66% year-on-year, with a net loss of RMB 185 million [4]. - Q2 2024 revenue was RMB 622 million, down 16.99% year-on-year but up 180.72% quarter-on-quarter [4]. - The company’s revenue projections for 2024-2026 have been revised downwards due to changes in the external environment [4][8]. Business Segments - The space infrastructure segment saw a revenue decline of 88.44% year-on-year, while the PIE+ industry segment grew by 21.06% [5]. - Cloud service revenue decreased by 74.17% year-on-year [5]. Market Expansion - The company is expanding its overseas operations, with contracts in Bolivia and Pakistan, and has established branches in various countries [6]. - The report suggests that these international projects could significantly contribute to revenue growth from 2024 to 2026 [6]. Technological Advancements - The integration of AI with remote sensing is expected to enhance product competitiveness, with over 20 new aerospace AI models developed [7].