CICT Mobile (688387) Jianghai Securities·2025-01-21 11:38Investment Rating - The report assigns a "Buy" rating for the company for the first time [5] - Current price is 5.59 CNY with a target price of 7.58 CNY over a 12-month period [5] Core Insights - The company is a core enterprise under the China Information and Communication Technology Group, focusing on autonomous innovation in the telecommunications sector [5][8] - The company has shown steady revenue growth, with total revenue increasing from 5.15 billion CNY in 2018 to 7.848 billion CNY in 2023, reflecting a 5-year CAGR of 8.79% [18] - The company aims to build a 5G ecosystem and support digital transformation through its comprehensive mobile network deployment solutions [8] Financial Summary - Total revenue forecast for 2024-2026 is 76.25 billion CNY, 81.62 billion CNY, and 89.04 billion CNY respectively [5] - The company’s net profit attributable to shareholders has improved from a loss of 673.97 million CNY in 2022 to a loss of 357.31 million CNY in 2023, with a year-on-year reduction in loss of 46.97% [20] - The company’s gross margin has remained stable, with a gross margin of 21.34% in 2023 [21] Business Overview - The company specializes in mobile communication technology services and network equipment, including system equipment, feeder equipment, and industry-specific network equipment [25] - The company has a strong market presence in the satellite internet sector and is actively involved in the standardization of 5G satellite communication [5][8] - The management team has extensive industry experience, with key executives having backgrounds in leading telecommunications firms [15][17] Market Position - The company has a solid shareholder structure, with the largest shareholder holding 41.01% of the shares, ensuring stability and strong backing [14] - The company has been recognized as a key contributor to the development and standardization of 5G technology [5][8] - The company’s operational efficiency is improving, as evidenced by the rising accounts receivable turnover ratio from 1.23 in 2020 to 1.55 in 2023 [27]