Genew(SH:688418) Southwest Securities·2024-05-08 11:00Investment Rating - The report maintains a "Hold" rating for the company, indicating that the stock is expected to perform in line with the market over the next six months [11][16]. Core Insights - The company achieved a revenue of 889 million yuan in 2023, representing a year-on-year growth of 66.1%. The net profit attributable to the parent company was -90 million yuan. In Q1 2024, the company reported a revenue of 180 million yuan, up 32.6% year-on-year, with a net profit of 6.99 million yuan, an increase of 46.8% [16]. - The company is focusing on overseas markets and satellite internet, with significant growth in overseas revenue, which reached 320 million yuan in 2023, a 117.3% increase year-on-year. The company has also secured multiple domestic and international satellite internet core network projects [16][17]. - The gross margin improved to 40.5% in 2023, up 1.4 percentage points year-on-year, due to enhanced product value and effective cost control, with a comprehensive expense ratio of 43.9%, down 23.5 percentage points [16]. - The company is investing in quantum encryption, AI, and integrated scheduling technologies, with R&D expenditure of 200 million yuan in 2023, accounting for 22.8% of total revenue [16]. Financial Forecasts - The company is expected to achieve earnings per share (EPS) of 0.53 yuan, 0.83 yuan, and 1.06 yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 35, 22, and 18 [16][17]. - Revenue projections for 2024 to 2026 are 884 million yuan, 1.293 billion yuan, and 1.896 billion yuan, with growth rates of 66.1%, 46.2%, and 46.6% respectively [17].