CETC POTEVIO SCIENCE&TECHNOLOGY CO.(002544) 中泰证券·2024-10-31 10:05Investment Rating - The report initiates coverage on Putian Technology with an "Overweight" rating [1] Core Views - Putian Technology is a key asset under China Electronics Technology Group Corporation (CETC) with strong communication technology capabilities [1] - The company has integrated high-quality assets through multiple reorganizations and is actively expanding into satellite internet and low-altitude economy sectors [1] - Putian Technology's business covers four major sectors: public network communication, private network communication, smart applications, and intelligent manufacturing [1] - The company has a strong technical advantage in PCB manufacturing and 5G applications, solidifying its leading position in the communication industry [1] - Putian Technology has implemented a long-term equity incentive plan to motivate management and retain core talent, ensuring sustained performance growth [1] Business Overview Public Network Communication - Putian Technology provides consulting, design, 5G industry applications, and engineering services, aiming to build efficient communication networks for clients [30] - The company has formed a "one core, two solutions" capability system in the 5G field, including 5G small base stations, micro-distribution, and 5G industry terminals [50] - Putian Technology has supported the construction of over 2.7 million 5G base stations across more than 20 provinces in China [51] Private Network Communication - The global 5G private network market was valued at 34.55 billion by 2030 [1] - Putian Technology leads in customized and secure private network solutions for industries such as rail transit, energy, and emergency communication [1] - The company has a significant market share in rail transit communication, digital transportation, and energy power dispatch communication [58][61] PCB Manufacturing - The global PCB market was approximately 90.4 billion by 2028 [1] - Putian Technology is the largest domestic manufacturer of military PCBs, with high technical barriers providing long-term market advantages [1] - The company's PCB products are widely used in military and communication industries, offering high frequency, high density, and high reliability [69] Growth Opportunities Satellite Internet - Putian Technology is leveraging its shareholder resources to gain a first-mover advantage in the satellite internet sector, driving communication transformation in the 6G era [1] - The company has established strategic partnerships and technological innovations to enhance its competitiveness in satellite internet [1] Low-Altitude Economy - As a member of the Guangdong Digital Low-Altitude Professional Committee, Putian Technology is actively participating in the construction of low-altitude intelligent networks [1] - The company has partnered with Xi'an Electronic Science and Technology University to establish a joint laboratory, advancing the development of integrated space-ground information networks [1] Financial Performance - Putian Technology's revenue declined to 5.463 billion yuan in 2023 due to delays in private network projects and weak market demand [1] - The company's net profit attributable to shareholders dropped to 36 million yuan in 2023, an 83.10% year-on-year decrease [40] - However, the public network communication business showed recovery in the first half of 2024, with revenue and profit returning to growth [1] Valuation and Forecast - The report forecasts Putian Technology's net profit attributable to shareholders to be 95 million yuan, 181 million yuan, and 260 million yuan for 2024, 2025, and 2026, respectively [1] - Based on the closing price on October 29, 2024, the corresponding P/E ratios are 182.1x, 95.3x, and 66.4x for 2024, 2025, and 2026 [1]