Haige Communications(SZ:002465) Soochow Securities·2024-09-18 03:00Investment Rating - The report assigns a "Buy" rating for the company, Haige Communication [1]. Core Viewpoints - Haige Communication is a leading enterprise in defense informationization, with a strong focus on wireless communication and BeiDou navigation, benefiting from the ongoing demand for military wireless communication in China [3][4]. - The company has established a comprehensive layout in the BeiDou navigation sector, achieving a full industry chain from chips to systems, and is positioned to benefit significantly from the upcoming replacement cycle of BeiDou equipment [3][4]. - The strategic placement of directed share placements aims to enhance capabilities in "BeiDou + 5G" integration, unmanned information industries, and satellite internet, indicating a proactive approach to emerging business opportunities [3][4]. Summary by Sections 1. Military Communication and Navigation Leader - Haige Communication has evolved from a single-purpose manufacturer to a comprehensive provider in military communication, covering a wide range of products and frequencies [11][13]. - The company is well-positioned to capitalize on the accelerating pace of national defense informationization, which is crucial for modern warfare [28][31]. 2. Wireless Communication - The military communication market in China is expected to grow significantly, with a compound annual growth rate exceeding 12% over the past decade, driven by increased defense spending on information technology [38][40]. - Haige Communication's products cover all frequency bands and are widely used across various military branches, showcasing its strong market position [41][43]. 3. BeiDou Navigation - The completion of the BeiDou-3 satellite system marks the beginning of a significant replacement cycle for ground navigation equipment, which is expected to drive demand from special institutions [49]. - The BeiDou navigation market is expanding rapidly, with applications in various sectors, including transportation and public safety, contributing to the overall growth of the satellite navigation and positioning services industry [45][47]. 4. Financial Forecast and Valuation - The company is projected to achieve net profits of 741 million, 1,028 million, and 1,309 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 28, 20, and 16 [2][4]. - The revenue growth trajectory indicates a stable increase, with total revenue expected to rise from 6,449 million yuan in 2023 to 10,274 million yuan by 2026 [2][4].