Guobo Electronics (688375) 中航证券·2024-11-20 05:49Investment Rating - The investment rating for Guobo Electronics (688375) is "Buy" with a target price of 70.00 CNY, indicating an expected return of over 10% relative to the CSI 300 index in the next six months [1][6][29]. Core Insights - Guobo Electronics is a leading enterprise in T/R component production, primarily serving the military electronics sector, with a significant focus on active phased array T/R components and RF integrated circuits [1][6]. - The company reported a revenue of 1.814 billion CNY for Q1-Q3 2024, a decrease of 35.83% year-on-year, and a net profit of 306 million CNY, down 31.93% year-on-year. However, the gross margin improved to 36.39%, up 4.14 percentage points [1][5]. - The report anticipates a recovery in the industry, with expectations for revenue growth in the coming years, projecting revenues of 2.827 billion CNY, 3.316 billion CNY, and 3.958 billion CNY for 2024, 2025, and 2026 respectively [6][12]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 511 million CNY, a year-on-year decline of 43.51%, and a net profit of 62 million CNY, down 56.28% year-on-year. The gross margin reached a historical high of 39.58% [1][5]. - The company's operating cash flow turned positive with a net cash flow of 147 million CNY, primarily due to increased cash receipts from maturing notes [5][6]. - The report highlights a slight increase in operating expenses, with sales expenses decreasing by 1.30% to 7 million CNY, while management expenses rose by 4.27% to 97 million CNY [5][6]. Market Position and Growth Potential - Guobo Electronics is positioned to benefit from its backing by China Electronics Technology Group Corporation and is the only listed platform under its subsidiary, which enhances its market competitiveness [1][6]. - The company has successfully delivered products in the low-altitude sensing and satellite communication sectors, indicating a diversification of its revenue streams [5][6]. - The report emphasizes the potential for growth in the low-altitude RF modules and chips, as well as in the low-orbit satellite and commercial aerospace markets, which are expected to accelerate in the coming years [6][12].