ComNav Technology (SH:688592) AVIC Securities·2024-05-13 01:30Investment Rating - The investment rating for the company is "Buy" [2][49]. Core Views - The company has shown significant growth in revenue and profit, with a 22.66% increase in revenue to 4.12 billion and a 15.57% increase in net profit to 0.42 billion in 2023. This growth is attributed to enhanced market expansion capabilities across multiple sectors [74][56]. - The company is focusing on high-precision satellite navigation technology, which is expected to benefit from the integration of the "Beidou+" and "+Beidou" industry development trends, leading to new market opportunities [120][93]. - The company has established a full industry chain business model, integrating basic products, terminals, and data applications, which is expected to enhance its market competitiveness [117][45]. Revenue and Profit Analysis - In 2023, the company's revenue from high-precision GNSS boards/modules decreased to 0.64 billion, a decline of 22.15%, while the gross margin remained high at 63.98% [7][22]. - Revenue from data collection equipment increased by 20.48% to 2.14 billion, maintaining a stable gross margin of 58.68% [20][22]. - The agricultural machinery autonomous driving system saw a significant revenue increase of 119.74% to 0.55 billion, with a gross margin improvement to 26.71% [20][22]. Market Expansion and R&D Investment - The company has increased its R&D investment by 23.78% to 0.85 billion in 2023, with a stable growth in the number of R&D personnel [41][83]. - The company is actively expanding its market presence, particularly in emerging sectors such as drones, smart driving, and the Internet of Things, which are expected to provide substantial growth opportunities [46][120]. Financial Forecast - The company is projected to achieve revenues of 5.15 billion, 6.49 billion, and 8.33 billion for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 0.49 billion, 0.59 billion, and 0.72 billion [49][94].