Genew(688418) 国盛证券·2024-09-24 03:37Investment Rating - The report maintains a "Buy" rating for the company, reflecting positive expectations for its future performance [4] Core Views - The company achieved a turnaround in H1 2024 with revenue of 376 million yuan, up 16.2% YoY, and net profit of 7.73 million yuan [1] - Overseas telecom orders are accelerating recovery, with significant project wins in South Asia, Southeast Asia, Middle East, and Africa [2] - The company is emerging as a core supplier in satellite communication, securing a 112 million USD contract and multiple satellite internet core network projects [2] - Domestic public and private network businesses remain stable, with continued cooperation with major telecom operators and successful bids for 5G projects [2] Financial Performance - Q2 2024 revenue reached 196 million yuan, up 4.3% YoY, with net profit of 740,000 yuan [1] - Revenue is expected to grow to 1.11/1.33/1.53 billion yuan in 2024-2026, with net profit projected at 40/100/140 million yuan [2] - The company's PE ratio is estimated at 69/28/20x for 2024-2026 [2] Business Development - Overseas telecom market recovery is driving growth, with increased project deliveries and improved gross margins [2] - The company has secured multiple international projects, including: - Bangladesh: Banglalink ISBC Phase III, Ringtech ICX Phase II, AGNI ICX Phase II [2] - Southeast Asia: Cloud PBX project [2] - India: TATA IMS expansion and BSNL optical transmission maintenance [2] - Middle East: Iraq fixed network expansion [2] - Africa: Angola 5G private network and Mauritania ATSS Phase IV [2] Satellite Communication - The company is positioning itself as a key player in satellite communication, with: - 112 million USD satellite communication equipment and service contract [2] - Multiple satellite internet core network project wins [2] - Development of 5G+satellite integrated services, including BeiDou satellite multimedia communication [2] Domestic Market - Continued strong performance in domestic public and private networks: - China Telecom: TianTong-1 core network expansion [2] - China Unicom: 5G private network gateway Phase II [2] - China Broadcasting Network: 5G core network Phase II welcome message system [2] - Multiple provincial XG-PON equipment projects [2] - Successful bid for China Broadcasting Network's 5G to B private network project [2] Financial Projections - Revenue growth is expected to continue at 25.1%/19.8%/15.1% in 2024-2026 [3] - Net profit margin is projected to improve from -9.8% in 2023 to 3.7%/7.5%/9.1% in 2024-2026 [9] - ROE is forecast to turn positive, reaching 4.7%/10.3%/12.5% in 2024-2026 [9]