PIESAT(SH:688066) Guotou Securities·2024-04-14 16:00Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of 27.2 CNY, which corresponds to a dynamic P/E ratio of 40 times for 2024 [10][14]. Core Insights - The company experienced significant revenue fluctuations in 2023, with total revenue of 1.819 billion CNY, a year-on-year decline of 25.98%. The net profit was -374.2 million CNY, a decrease of 241.51% year-on-year [22]. - The company's revenue in Q4 2023 was 232 million CNY, down 78.18% year-on-year. The revenue breakdown includes 154 million CNY from space infrastructure planning and construction (YoY -18.92%), 1.588 billion CNY from the PIE+ industry (YoY -27.44%), and 77 million CNY from cloud services (YoY +1.03%) [1][22]. - The decline in revenue is attributed to external factors, including a concentrated customer base in government and large state-owned enterprises, which faced pressure from the macroeconomic environment and delays in project bidding processes due to the suspension of military procurement qualifications [1][4]. - The company is expected to recover revenue growth in 2024, supported by the resumption of bidding qualifications and increased demand for orders in disaster recovery and flood control due to the issuance of government bonds [1][4][14]. Summary by Sections Revenue Performance - The company’s revenue for 2023 was 1.819 billion CNY, down 25.98% year-on-year. The Q4 revenue was particularly affected, showing a 78.18% decline [22]. - The revenue from various business segments showed mixed results, with space infrastructure planning and construction down 18.92%, PIE+ industry down 27.44%, and cloud services slightly up by 1.03% [1]. Profitability - The gross margin decreased from 48.05% in 2022 to 35.92% in 2023, primarily due to mismatches in cost and revenue recognition timing, alongside fixed expenses amid declining revenue [1][22]. - The net profit for 2023 was -374.2 million CNY, reflecting a significant drop compared to the previous year [22]. Future Outlook - The company is projected to achieve revenues of 2.548 billion CNY, 3.378 billion CNY, and 4.183 billion CNY for 2024, 2025, and 2026 respectively, with net profits expected to recover to 177.4 million CNY, 326.8 million CNY, and 491.9 million CNY in the same years [30]. - The company has secured its first overseas order worth 22.387 million USD, indicating its growing competitiveness in international markets [23].