Investment Rating - The report assigns a "Buy" rating for the company with a target price of 24.05 CNY, based on a current price of 19.99 CNY [7]. Core Insights - The company is a core supplier of military communication products and is expected to benefit from a new procurement cycle driven by the military's informationization efforts and the upcoming "15th Five-Year Plan" [4][41]. - The company has faced a significant decline in revenue and net profit in 2024, primarily due to industry cyclical adjustments and a decrease in new orders [3][23]. - The military communication sector is anticipated to experience a recovery in orders, which could lead to a reversal in the company's performance [4][24]. Summary by Sections Company Overview - The company, established in 1936, is a major electronic enterprise focused on military and civilian wireless communication, as well as environmental monitoring [2][14]. - It was listed on the Shanghai Stock Exchange in 2018 and is controlled by the Tianjin State-owned Assets Supervision and Administration Commission [2][14]. Market Opportunities - The "14th Five-Year Plan" is nearing its end, and the company is expected to release previously delayed orders, which, combined with the new equipment from the "15th Five-Year Plan," may lead to a new inventory cycle in the military information sector [3][24]. - The demand for military and civilian communication products is projected to increase due to the modernization of military capabilities and the expansion of transportation infrastructure [4][42]. Financial Performance - In 2024, the company reported a revenue of 2.16 billion CNY, a decrease of 34.09% year-on-year, and a net loss of 248.82 million CNY, a decline of 156.58% [3][6]. - The company’s revenue and net profit showed an upward trend from 2019 to 2022, but faced challenges in 2024 due to market conditions [3][24]. Profitability Forecast - The report forecasts a recovery in revenue growth from 2025 onwards, with expected growth rates of 30%, 25%, and 20% for the years 2025 to 2027 [46][47]. - The company is projected to maintain a relatively high gross margin and return on equity (ROE) despite recent declines [28][29]. R&D and Competitive Advantage - The company emphasizes R&D, with R&D expenses accounting for 29.27% of revenue in 2024, reflecting its commitment to innovation and maintaining a competitive edge [33][34]. - It holds numerous patents and has been involved in the development of various wireless communication standards, enhancing its industry influence [33][34].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 24.05 CNY, based on a current price of 19.99 CNY [7]. Core Viewpoints - The company is positioned as a core supplier of military communication products, benefiting from the ongoing modernization of military communication systems and the anticipated recovery in orders during the "15th Five-Year Plan" period [3][4]. - The company has experienced a significant decline in revenue and net profit in 2024, primarily due to industry cyclical adjustments and a decrease in new orders, but it is expected to recover as delayed orders are released and new equipment is procured [3][24]. - The company maintains a strong focus on R&D, with R&D expenses constituting 29.27% of revenue in 2024, which supports its competitive advantage in the military communication sector [33][34]. Summary by Sections Company Overview - The company, established in 1936, is a major electronic enterprise specializing in military and civilian wireless communication, as well as environmental monitoring [2][14]. - It was listed on the Shanghai Stock Exchange in 2018 and is controlled by the Tianjin State-owned Assets Supervision and Administration Commission [2][14]. Financial Performance - In 2024, the company reported revenue of 2.15 billion CNY, a year-on-year decrease of 34.09%, and a net loss of 248.82 million CNY, a decline of 156.58% [3][6]. - The company’s revenue and net profit showed an upward trend from 2019 to 2022, but faced challenges in 2024 due to market conditions [24][26]. Market Outlook - The military communication sector is expected to see increased demand due to the modernization of the military and the emphasis on information technology in warfare [37][41]. - The civilian communication market is also projected to grow, driven by national transportation infrastructure development and the integration of various transportation systems [42][44]. Profit Forecast and Valuation - The company is expected to see revenue growth in the coming years, with projected increases of 30% in 2025, 25% in 2026, and 20% in 2027 for terminal products [46][47]. - The report suggests that the company’s competitive advantages and market position will allow it to outperform its peers in the military communication sector [5][46].

Investment Rating - The investment rating for the company is "Buy" with a target price set at 36.3 yuan, maintaining the rating for the next six months [6]. Core Views - The company reported a total revenue of 2.802 billion yuan for 2024, a decrease of 20.04% year-on-year, and a net profit attributable to shareholders of 195 million yuan, down 38.9% year-on-year. The decline in revenue is attributed to macroeconomic factors and a slow recovery in downstream market demand, particularly due to a significant reduction in demand from trade business clients. However, there is an expectation of a demand turning point in the future [1]. - The company’s self-produced components business generated sales revenue of 992 million yuan, accounting for 35.40% of total revenue, with a year-on-year decline of 11.77%. The company is expected to benefit from a new round of procurement cycles driven by military informationization and the release of previously delayed orders [2]. - The new materials segment achieved sales revenue of 141 million yuan, representing 5.02% of total revenue, with a year-on-year decline of 19.41%. The core products have made progress in downstream applications, and the demand for new materials is anticipated to recover as the aerospace equipment construction demand remains clear [3]. Financial Data and Valuation - The company’s financial projections indicate a recovery in net profit, with estimates of 502 million yuan, 722 million yuan, and 950 million yuan for 2025, 2026, and 2027 respectively, corresponding to P/E ratios of 33.40, 23.22, and 17.64 [4][3]. - The company’s revenue is projected to grow significantly in the coming years, with expected growth rates of 33.98%, 33.24%, and 31.69% for 2025, 2026, and 2027 respectively [4]. - The company’s total assets are projected to reach 8.238 billion yuan by 2025, with a debt-to-asset ratio of 25.82% [13].