CICT Mobile (SH:688387) Tianfeng Securities·2025-05-05 09:03Investment Rating - The investment rating for the company is "Accumulate" [7] Core Views - The company continues to experience losses in 2024, primarily due to a significant decline in capital expenditures from operators, but the losses are narrowing and operating cash flow has turned positive [1] - The company reported a revenue of 6.491 billion yuan in 2024, a year-on-year decrease of 17%, with a net profit attributable to the parent company of -279 million yuan, a reduction in losses by 79 million yuan compared to the previous year [1] - The company is expected to face short-term performance pressure due to reduced spending from downstream operators, but areas such as satellite communications, 5G-A, and 5G-R are anticipated to become growth points in the future [5] Financial Performance Summary - In 2024, the system equipment revenue decreased by 40% to 1.392 billion yuan, while the gross margin improved by 3.2 percentage points to 39.34% [2] - The revenue from industry-specific networks and other income grew by 85% to 1.054 billion yuan, with a gross margin increase of 1.5 percentage points to 36.75% [3] - Other business segments, including integrated mobile communication services, saw a revenue decline of 21% to 2.273 billion yuan, while feeder equipment and indoor equipment revenues decreased by 19% and 16%, respectively [4] Profit Forecast and Investment Recommendations - Due to the decline in operator capital expenditures, profit forecasts have been adjusted, with expected net profits for 2025-2027 being 4.23 million yuan, 140 million yuan, and 258 million yuan respectively [5] - The company maintains an "Accumulate" rating, indicating a positive outlook despite current challenges [5]