Guobo Electronics (688375) Soochow Securities·2024-10-31 06:41Investment Rating - The report maintains a "Buy" rating for Guobo Electronics [1] Core Views - The company's revenue and profit have been under pressure due to a decline in the price of T/R components and RF modules, resulting in a 35.83% year-on-year decrease in revenue to 1.814 billion yuan and a 31.93% drop in net profit to 306 million yuan for the first three quarters of 2024 [1][2] - The decline in demand for RF integrated circuits and GaN RF modules is attributed to a slowdown in base station investments following the peak of 5G investments, impacting sales performance [1] - Despite progress in technology research and product development in low-orbit satellites and commercial aerospace, these efforts have not yet contributed significantly to market performance [1] Financial Performance Summary - For Q3 2024, the company reported revenue of 511 million yuan, down 43.51% year-on-year, and a net profit of 62 million yuan, which is a 56.28% decrease [1] - The net cash flow from operating activities reached -214 million yuan in Q3 2024, an increase of 45.19% year-on-year, while the cash flow for the first three quarters was 147 million yuan, up 159.40% year-on-year [2] - R&D expenses for Q3 2024 were 77 million yuan, down 8.38% year-on-year, and totaled 257 million yuan for the first three quarters, a decrease of 2.34% [2] Shareholder Actions - The controlling shareholder, Guojin Southern, plans to increase its stake by no less than 400 million yuan and up to 700 million yuan, indicating confidence in the company's future development and long-term investment value [3] - This share buyback is expected to enhance market confidence in Guobo Electronics and potentially attract more investors [3] Earnings Forecast and Valuation - The company has revised its net profit forecasts for 2024-2026 to 476 million, 556 million, and 703 million yuan, respectively, with corresponding P/E ratios of 70, 60, and 47 times [3]