FHEC(SZ:000561) AVIC Securities·2024-04-26 09:30Investment Rating - The investment rating for the company is "Buy" with a target price of 10.00 yuan, corresponding to a PE ratio of 39 times for 2024-2026 forecasted EPS [2][21]. Core Viewpoints - The company is positioned as a leading enterprise in military shortwave communication and is expanding into high-tech communication fields through the acquisition of Longling Technology, which is expected to enhance its product line and performance [21][16]. - The company has a comprehensive research and production capability layout, focusing on next-generation communication technologies to meet user needs in various scenarios [1]. - The company has experienced fluctuations in revenue and profit due to downstream demand adjustments, with a reported revenue of 1.47 billion yuan in 2023, down 8.11% year-on-year, and a net profit of 52.34 million yuan, down 46.41% [21][33]. Summary by Relevant Sections Financial Performance - The company reported a revenue of 1.47 billion yuan in 2023, a decrease of 8.11% compared to the previous year, with a net profit of 52.34 million yuan, down 46.41% [21][33]. - For 2024-2026, projected revenues are 3.00 billion yuan, 3.33 billion yuan, and 3.66 billion yuan, with corresponding net profits of 125.33 million yuan, 143.23 million yuan, and 163.32 million yuan [2][3]. Business Development - The company is focusing on high-tech communication and has plans to acquire 98.40% of Longling Technology, which specializes in radar and related products, to enhance its capabilities in high-tech communication [16][21]. - The company has successfully developed multiple generations of shortwave communication equipment, representing the highest level in the industry [1]. Market Outlook - The company is expected to benefit from the modernization of national defense and military communication construction, as well as the growing demand for civil emergency communication systems [16][21]. - The market for emergency communication products is anticipated to expand, with increasing investments in various sectors such as public safety and disaster prevention [16].