Core Viewpoint - The company experienced a significant decline in revenue and profit due to delayed procurement cycles and slower contract signings from industry clients, alongside high R&D expenses [2][4]. Financial Performance - In Q1-Q3 2025, the company achieved revenue of 3.158 billion yuan, a year-on-year decrease of 16.17%, and a net profit attributable to shareholders of -175 million yuan, a year-on-year decline of 194.73% [1]. - In Q3 2025, the company reported revenue of 928 million yuan, down 21.02% year-on-year, with a net profit of -178 million yuan, reflecting a staggering year-on-year decline of 1529.15% [1]. R&D and Investment - R&D expenses for the first three quarters were 690 million yuan, a slight decrease of 1.7% year-on-year, indicating sustained investment despite negative net profits [2]. - The company has ongoing construction projects valued at 1.276 billion yuan, a year-on-year increase of 54.7%, reflecting continued investment in cutting-edge fields such as Beidou, 6G, and low-altitude economy [2]. Strategic Initiatives - The company is actively involved in satellite internet initiatives, with core products and terminals entering multiple in-orbit testing projects, and has begun formal development of RF and baseband chips [2]. - In the low-altitude economy sector, the company is leveraging its expertise in civil aviation communication and navigation to develop integrated communication networks and management platforms for low-altitude unmanned systems [3]. - The company has expanded its unmanned communication systems to various platforms, achieving breakthroughs in unmanned cluster communication [3]. Future Outlook - Despite the current downturn in revenue and profit, the company anticipates a recovery in downstream customer demand in 2026 and beyond, with new investments in emerging fields expected to gradually reflect in performance [4]. - The collaboration between China Mobile and the company is expected to strengthen, particularly in the "Beidou + 5G" sectors, potentially enhancing technical capabilities and market resources [4]. Profit Forecast - The company forecasts net profits attributable to shareholders of 9 million yuan, 380 million yuan, and 614 million yuan for 2025-2027, with year-on-year growth rates of -83%, 3988%, and 62% respectively [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [5] Core Views - The company is currently undergoing upgrades in its Beidou equipment and radio products, with future growth expected in these areas. Collaboration with China Mobile is deepening, which may lead to breakthroughs in mobile and automotive applications, enhancing the contribution of civilian products to the company's growth [2] - The company is leveraging its core technologies in communication and navigation to penetrate the unmanned combat sector, with significant investments in unmanned systems and terminal equipment, which are expected to yield substantial benefits [2] Financial Performance - In the first half of 2025, the company reported revenue of 2.229 billion yuan, a year-on-year decrease of 13.97%, and a net profit attributable to shareholders of 3 million yuan, down 98.72% year-on-year [4] - Revenue breakdown for 2025H1 shows: - Digital ecology: 1.082 billion yuan, down 13.15%, with a gross margin of 12.19% - Wireless communication: 690 million yuan, down 5.73%, with a gross margin of 38.31% - Beidou navigation: 280 million yuan, down 32.25%, with a gross margin of 55.68% - Simulation: 140 million yuan, down 11.04%, with a gross margin of 16.26% [4] Future Outlook - The company is expected to recover from the current downturn in customer demand, with significant investments in emerging fields likely to translate into improved performance in the future. The collaboration with China Mobile in "Beidou + 5G" is anticipated to create synergies that will drive growth [8] - Profit forecasts for 2025-2027 indicate net profits of 232 million, 508 million, and 815 million yuan, representing year-on-year growth rates of 336%, 119%, and 60%, respectively [8]