GREAT MICROWAVE(SH:688270) Guotou Securities·2025-08-27 11:48Investment Rating - The report assigns a "Buy-A" investment rating to the company with a 12-month target price of 87.30 CNY [3][5]. Core Views - The company achieved a revenue of 205 million CNY in H1 2025, representing a year-on-year increase of 73.64%, and a net profit of 62 million CNY, up 1007% year-on-year [1]. - The recovery in downstream demand has led to rapid performance release, with the company's net profit margin increasing by 25.6 percentage points to 30.4% in H1 2025 [1]. - The company continues to strengthen its first-mover advantage in specialized fields such as data chains, electronic countermeasures, and wireless communication terminals [1][2]. Financial Performance - In H1 2025, the company's revenue from RF transceiver chips and high-speed high-precision ADC/DAC chips reached 81 million CNY, up 71.8% year-on-year, with a gross margin of 96.5% [1]. - Revenue from power management chips was 103 million CNY, reflecting a 95.8% year-on-year increase, with a gross margin of 86.2% [1]. - The company reported a significant increase in R&D investment, reaching 67 million CNY in H1 2025, with an R&D expense ratio of 32.5% [2]. Future Growth Projections - The company is expected to achieve net profits of 112 million CNY, 188 million CNY, and 260 million CNY for the years 2025, 2026, and 2027, respectively, with growth rates of 529%, 67.6%, and 38.2% [3]. - The report highlights the potential for growth driven by the mass production and delivery of satellite-related products as demand in the commercial aerospace sector increases [2].