PIESAT(SH:688066) Guoyuan Securities·2024-04-22 09:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% compared to the Shanghai Composite Index within the next six months [21]. Core Views - The company's operating performance is under short-term pressure, with a significant decline in revenue and profit due to various factors, including project delays and a challenging macroeconomic environment. However, there is optimism regarding future overseas business growth and the potential for rapid order increases as international project experience accumulates [15][22][23]. Financial Performance Summary - In 2023, the company reported operating revenue of 1.819 billion yuan, a year-on-year decrease of 25.98%. The attributable net profit was -374.21 million yuan, with a non-recurring net profit of -454 million yuan [22]. - The revenue breakdown includes 154.04 million yuan from space infrastructure planning and construction, 1.587 billion yuan from the PIE+ industry, and 77.19 million yuan from cloud service products [22]. - The company forecasts revenues of 2.601 billion yuan, 3.503 billion yuan, and 4.610 billion yuan for 2024, 2025, and 2026, respectively, with attributable net profits of 147 million yuan, 305 million yuan, and 439 million yuan [24]. Growth Potential - The company is expanding its overseas market presence, having established branches in multiple countries and signed contracts for projects in South America. This strategic expansion is expected to enhance its implementation capabilities in remote sensing applications [17][23]. - The company is also focusing on cloud transformation and the development of AI models, which are anticipated to contribute to its growth in the AI + remote sensing sector [16][24]. Financial Ratios and Valuation - Key financial ratios for 2023 include a return on equity (ROE) of -16.39% and a price-to-earnings (P/E) ratio of -15.03. The company expects to improve these metrics in the coming years, with projected ROE of 6.05%, 11.18%, and 13.98% for 2024, 2025, and 2026, respectively [41].