CATEC(600879) 华西证券·2024-06-06 10:02Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for future performance [4]. Core Views - The company is a key player in domestic aerospace electronics, being the only publicly listed platform under the Aerospace Science and Technology Corporation's Ninth Academy [2][6]. - The company is expected to benefit significantly from the burgeoning satellite internet and laser communication markets, with projected sales from related activities increasing by 91.15% to 7.5 billion yuan in 2024 [2][22]. - The demand for laser communication terminals is anticipated to exceed 170 billion yuan, driven by the Starlink and G60 satellite constellations [24]. Summary by Sections Company Overview - The company operates in several sectors including measurement and control communication, inertial navigation, electromechanical components, integrated circuits, unmanned systems, and electrical cables (the latter is planned for divestiture) [2][7]. - In 2023, the company achieved revenue of 18.727 billion yuan, a year-on-year increase of 7.16%, with a net profit of 525 million yuan [2][13]. Business Segments - The company has a strong presence in satellite internet and laser communication, with its laser communication terminals already being integrated into user equipment [2][24]. - The unmanned systems segment, particularly through its subsidiary Feihong, has seen significant growth, with a revenue increase of 126% in 2023 [30]. Financial Projections - The company is expected to achieve revenues of 17.157 billion yuan, 19.665 billion yuan, and 21.977 billion yuan from 2024 to 2026, with corresponding net profits of 755 million yuan, 916 million yuan, and 1.145 billion yuan [4][16]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.23 yuan, 0.28 yuan, and 0.35 yuan, respectively [4]. Investment Strategy - The company is focusing on core aerospace electronics and plans to divest its loss-making civil cable business to enhance overall profitability [13][16]. - A recent capital increase raised 4.136 billion yuan to invest in unmanned systems, satellite communication, and inertial navigation, aimed at expanding its product offerings and technological capabilities [16][17].