Guobo Electronics (SH:688375) SINOLINK SECURITIES·2024-04-30 02:30Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company reported a revenue of 3.57 billion RMB in 2023, a year-on-year increase of 3.1%, and a net profit attributable to shareholders of 606 million RMB, up 16.5% year-on-year [13][18] - The company is expanding its product applications in satellite communication, 5.5G, and low-altitude economy, with multiple products in the low-orbit satellite and commercial aerospace sectors starting to be delivered to customers [5][6] - The gross margin for 2023 was 32.3%, an increase of 1.6 percentage points year-on-year, while the net profit margin was 17.0%, up 2.0 percentage points year-on-year [18][20] Revenue and Profitability - In Q4 2023, the company achieved a revenue of 741 million RMB, a decrease of 7.3% year-on-year and 18.1% quarter-on-quarter, while the net profit was 156 million RMB, an increase of 31.3% year-on-year [13][18] - For Q1 2024, the company reported a revenue of 693 million RMB, down 0.6% year-on-year and 6.4% quarter-on-quarter, with a net profit of 121 million RMB, up 4.2% year-on-year [13][18] - The company expects net profits for 2024-2026 to be 670 million, 820 million, and 990 million RMB respectively, with year-on-year growth rates of 10%, 23%, and 21% [6][32] Product Performance - The revenue from T/R components and RF modules in 2023 was 3.38 billion RMB, a year-on-year increase of 7.6%, while RF chip revenue was 130 million RMB, down 53.0% year-on-year [16][20] - The gross margin for T/R components and RF modules was 31.9%, an increase of 2.69 percentage points year-on-year, while the gross margin for RF chips was 33.54%, a decrease of 9.07 percentage points year-on-year [20][22] Financial Metrics - The company’s diluted earnings per share for 2023 was 1.516 RMB, with a return on equity (ROE) of 10.11% [9][10] - The price-to-earnings (P/E) ratio is projected to be 44, 36, and 30 for 2024, 2025, and 2026 respectively [6][9] Capacity and Investment - The company’s fixed assets increased by 108.4% in 2023, primarily due to the completion of the RF integrated circuit industrialization project [28][30] - The company’s capital expenditure in 2023 was 659 million RMB, a year-on-year increase of 30.3% [28][30]