Guobo Electronics (688375) 国信证券·2024-05-06 02:17Investment Rating - The report maintains a "Buy" rating for Guobo Electronics (688375 SH) with a target price of 73 68 yuan [4][10] Core Views - Guobo Electronics achieved revenue of 3 567 billion yuan in 2023, a year-on-year increase of 3 08%, with net profit attributable to shareholders of 606 million yuan, up 16 47% year-on-year [1][6] - The company's T/R component and RF module business generated revenue of 3 38 billion yuan in 2023, a year-on-year increase of 7 6%, while RF chip revenue decreased by 53% to 127 million yuan due to adjustments in product structure [1][7] - The company's overall gross margin in 2023 was 32 28%, an increase of 1 61 percentage points year-on-year, with T/R components and RF modules contributing to a 2 69 percentage point increase in gross margin [1][7] - Guobo Electronics is focusing on technological advancements, including miniaturization, lightweight, and multifunctional chip technologies, as well as digital array and phased array radar systems [1][7] - The company is actively developing 5 5G and 6G technologies, with several RF integrated circuits already being used in 5 5G base stations and drone RF front-end modules [1][7] Financial Performance and Forecast - In Q1 2024, the company's revenue was 693 million yuan, a slight decrease of 0 62% year-on-year, while net profit attributable to shareholders increased by 4 22% to 121 million yuan [1][6] - The company plans to issue a capital reserve transfer of 4 9 shares for every 10 shares held [1][6] - Revenue for 2024 is projected to reach 4 092 billion yuan, with net profit attributable to shareholders expected to be 726 million yuan, representing a year-on-year increase of 19 7% [3][10] - The company's T/R component and RF module business is expected to grow by 15%, 20%, and 25% year-on-year in 2024, 2025, and 2026, respectively, driven by increased defense budget allocations and new product demands [8][9] - RF chip revenue is forecasted to grow by 5%, 10%, and 15% year-on-year in 2024, 2025, and 2026, respectively, as the company expands its applications in terminals such as smartphones and drones [8][9] Industry and Market Trends - The establishment of the Information Support Force of the People's Liberation Army is expected to benefit Guobo Electronics, as the company's T/R components and chips are critical RF components in network infrastructure [2] - The company is well-positioned to capitalize on the development of 5 5G and 6G technologies, with several products already being adopted by customers in satellite communication and 5 5G base stations [1][7]