Guobo Electronics (SH:688375) Tebon Securities·2025-01-02 09:10Investment Rating - The report initiates coverage on Guobo Electronics (688375.SH) with a "Buy" rating [4]. Core Views - Guobo Electronics is a leading supplier of active phased array T/R components and RF integrated circuits, serving both military and civilian sectors. The company is positioned to benefit from the ongoing construction of satellite internet infrastructure, which is expected to drive significant growth in demand for its core products [3][54]. Summary by Sections Company Overview - Guobo Electronics primarily engages in the research, production, and sales of active phased array T/R components and RF integrated circuits, making it a leading enterprise in China capable of mass production of these products [3][65]. Revenue and Profitability - The company forecasts total revenues of 2,850 million, 3,648 million, and 4,419 million CNY for 2024, 2025, and 2026 respectively, with net profits of 457 million, 625 million, and 761 million CNY for the same years. The projected PE ratios are 62.65, 45.77, and 37.61 for 2024, 2025, and 2026 respectively [4][75]. Market Position and Competitive Landscape - Guobo Electronics is the largest R&D and production platform for active phased array T/R components in China, with a significant market share among military groups. In the civilian sector, the company competes with international leaders like Skyworks and Qorvo, providing core RF components for mobile communication base stations [3][37]. Growth Drivers - The report highlights three key demand segments supporting T/R component revenue: precision-guided munitions, radar detection, and satellite communication. The active phased array radar market is expected to grow significantly, with Guobo Electronics positioned to benefit from this trend [28][31][97]. Satellite Internet Development - The report notes that China's satellite internet initiatives are lagging behind, with only 54 satellites launched compared to over 7,400 by SpaceX. However, the company anticipates a significant increase in satellite launches in the coming years, which will create demand for T/R components [34][54].