Haige Communications(SZ:002465) AVIC Securities·2024-09-09 03:04Investment Rating - The investment rating for the company is "Buy" with a target price of 11.50 CNY, indicating an expected return of over 10% relative to the CSI 300 index in the next six months [1][28]. Core Views - The report highlights significant growth in the Beidou navigation business, driven by the replacement of the Beidou II system with Beidou III, which is expected to enhance the company's market position [7][8]. - The company is actively expanding into emerging fields such as satellite internet, low-altitude economy, and unmanned systems, which are anticipated to provide new business opportunities [12][14]. - Despite a decline in revenue and net profit in the first half of 2024, the company is expected to recover as demand in the wireless communication sector stabilizes and the Beidou navigation business continues to grow [3][17]. Summary by Sections Financial Performance - In the first half of 2024, the company reported revenue of 2.591 billion CNY, a decrease of 9.93%, and a net profit of 196 million CNY, down 37.11% [1][5]. - The gross margin was 32.12%, down 1.85 percentage points, while the net margin was 8.63%, down 2.44 percentage points [1][5]. - The company experienced a significant increase in R&D expenses, which rose by 13.20% to 477 million CNY, reflecting a focus on new technologies [4][5]. Business Segments - Beidou Navigation: Revenue increased by 275.45% to 414 million CNY, accounting for 15.96% of total revenue, with a gross margin of 60.73% [1][3]. - Wireless Communication: Revenue fell by 44.60% to 731 million CNY, representing 28.23% of total revenue, with a gross margin of 40.42% [1][3]. - Aerospace: Revenue grew by 16.57% to 157 million CNY, with a gross margin of 35.58% [3][9]. - Digital Ecosystem: Revenue remained stable at 1.246 billion CNY, accounting for 48.07% of total revenue, but with a slight decline in gross margin to 15.22% [3][10]. R&D and Emerging Fields - The company is increasing its investment in R&D, with a focus on areas such as vehicle networking, satellite internet, low-altitude economy, and 6G technology [4][12]. - The establishment of a new subsidiary in Chongqing aims to enhance the company's presence in the southwest region and support its strategic initiatives in satellite internet and Beidou navigation [14][16]. Market Outlook - The company is well-positioned to benefit from the ongoing demand for defense information technology and the transition to Beidou III systems, which are expected to drive growth in the medium to long term [17][19]. - The report forecasts revenue growth for the company, projecting revenues of 6.875 billion CNY in 2024, 8.063 billion CNY in 2025, and 9.402 billion CNY in 2026, with corresponding net profits of 720 million CNY, 918 million CNY, and 1.158 billion CNY respectively [19][27].