CICT Mobile (688387) Guotai Junan Securities·2024-10-29 13:05Investment Rating - The report maintains a "Buy" rating for the company despite lowering the profit forecast and target price [3][5][7]. Core Views - The company's performance in Q3 2024 was below expectations, with a quarterly revenue decline of 37.15% year-on-year, resulting in a loss of 1.08 billion yuan [5][6]. - The report highlights the impact of reduced capital expenditure from telecom operators, which is expected to continue affecting the company's operations in the short term [5][6]. - The G60 satellite launch program and new policies from Guangdong province are seen as potential catalysts for growth in the commercial aerospace sector, which may benefit the company's related business [5][6]. Financial Summary - For the first three quarters of 2024, the company reported a revenue of 4.146 billion yuan, a year-on-year decrease of 21.50%, and a net loss of 1.70 billion yuan [5][6]. - The projected net profits for 2024-2026 are revised to -233 million yuan, 35 million yuan, and 345 million yuan, respectively, with corresponding EPS of -0.07, 0.01, and 0.10 yuan [5][6]. - The target price has been adjusted to 7.44 yuan, down from the previous 7.56 yuan, based on an industry average valuation of 4x PB for 2025 [5][7]. Industry Insights - The report notes that from August to October 2024, the G60 program successfully launched 18 satellites, with a total of 108 satellites expected to be launched this year [5][6]. - Guangdong's new action plan aims to develop the commercial aerospace industry to a scale of 300 billion yuan by 2026, which includes a comprehensive industrial chain from rockets to applications [5][6].