PIESAT(SH:688066) Guotai Junan Securities·2024-10-27 23:40Investment Rating - The report initiates coverage with a "Buy" rating for the company [5][11]. Core Views - The company is a leader in the remote sensing industry, being the first in China to provide integrated services across the entire remote sensing satellite industry chain, with promising growth prospects in commercial aerospace and low-altitude economy [3][20]. - The company is expected to achieve revenue of 2.15 billion, 3.10 billion, and 4.15 billion RMB for the years 2024, 2025, and 2026 respectively, with EPS projected at 0.18, 0.78, and 1.53 RMB [13][11]. - The report highlights the company's competitive advantages through its comprehensive industry chain layout, including the construction of the "Nüwa Constellation" and the development of the PIE-Engine platform, which are expected to drive long-term growth [8][11]. Summary by Sections 1. Investment Recommendations - The company is projected to have a reasonable valuation of 76.77 billion RMB, corresponding to a target price of 29.38 RMB based on a PE ratio of 37.5 for 2025 [8][11]. 1.1 Revenue and Profit Forecast - The company’s revenue is expected to grow significantly, with a forecasted increase of 18.4% in 2024, 44.2% in 2025, and 33.7% in 2026 [9][13]. - The gross margin for the self-developed software sales is anticipated to remain high at around 95% from 2024 to 2026 [12]. 1.2 Valuation Analysis - The report employs both PE and PS valuation methods, with a focus on comparable companies in the commercial aerospace sector [15][17]. - The average PS ratio for comparable companies is noted to be 3.41, and a conservative PS of 2.5 is applied to the company for a reasonable market value of 77.62 billion RMB [17][18]. 2. Industry Leadership - The company is recognized as a leading player in the satellite internet sector and is actively pursuing the integration of remote sensing and geographic information software [20][22]. - The "Nüwa Constellation" project aims to enhance the company's global remote sensing data acquisition capabilities, achieving a revisit time of one hour and providing sub-meter level observation capabilities [21][22]. 3. Business Development and Competitive Edge - The company has established a robust competitive edge through its three main business lines: spatial infrastructure planning and construction, PIE+ industry products, and cloud service products [24]. - The company is expanding its international presence, having established branches in various countries and engaging in projects along the "Belt and Road" initiative [24].