Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return that will outperform the market benchmark by more than 15% over the next 6-12 months [6][15]. Core Views - The company's revenue for the first half of 2025 reached 2.935 billion yuan, a year-on-year increase of 0.47%, while the net profit attributable to the parent company was 86.6952 million yuan, a year-on-year decrease of 77.49% [1][2]. - Despite a decline in performance, the company has seen a rapid growth in orders, particularly in defense, new energy, and data communication sectors, although revenue growth has not kept pace due to extended customer product acceptance cycles [2][3]. - The company is focusing on enhancing its production capacity and has implemented measures to optimize order scheduling and supply chain resources, which is expected to lead to improved performance in the second half of the year [3]. Summary by Sections Financial Performance - In H1 2025, the company's gross margin and net margin were 31.94% and 3.91%, respectively, both showing a decline of 15.58 percentage points and 11.16 percentage points year-on-year [2]. - The company has actively managed costs, with sales expense ratio, R&D expense ratio, and management expense ratio decreasing by 0.86 percentage points, 2.02 percentage points, and 1.41 percentage points, respectively [2]. Order and Production Capacity - The company has secured opportunities for three key new projects and has seen over 30% year-on-year growth in orders from new industries [3]. - A total of 15 major industrialization projects have been identified, contributing to a significant increase in orders [3]. Profit Forecast and Valuation - The net profit forecasts for 2025 and 2026 have been revised down by 51% and 37% to 442 million yuan and 713 million yuan, respectively, with a new forecast for 2027 at 988 million yuan [3]. - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.97 yuan, 1.56 yuan, and 2.17 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 56x, 34x, and 25x [3][5].

Group 1 - The core viewpoint of the article highlights that Shenglu Communication's microwave electronic products are utilized in various advanced fields such as radar, electronic countermeasures, remote sensing telemetry, and satellite communication [2] Group 2 - The company's microwave electronic product offerings include microwave devices, microwave components, sub-systems, and multifunctional chips [2]

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook based on its market position and growth potential [9]. Core Insights - The company is a leading service provider in the domestic television channel coverage sector, benefiting from the ongoing development of the audiovisual industry and the transformation of the broadcasting sector. It is also expanding into the microwave components business, which is expected to contribute to revenue growth [9]. Company Overview - The company was established in 2011 and has evolved from a hardware supplier to a comprehensive enterprise that integrates technology product development, broadcasting and operator channel services, and digital marketing. It was listed on the Beijing Stock Exchange in November 2021 and has received various accolades, including being recognized as a "Specialized and Innovative Small Giant" by Beijing in February 2022 [3][13]. - The company's revenue has grown from 128 million yuan in 2014 to 760 million yuan in 2023, with a CAGR of 22%. The net profit attributable to shareholders increased from 7.67 million yuan in 2014 to 20.21 million yuan in 2023, with a CAGR of 11% [3][15]. Television Channel Comprehensive Operation Service - The television channel coverage service is a core business, with significant growth potential driven by the audiovisual market, which is expected to grow from 71.5 billion USD in 2023 to 97.5 billion USD by 2028, at a CAGR of 5% [5][38]. - The company has provided coverage services for over 30 satellite channels, 11 shopping channels, and 5 cartoon channels, effectively negotiating coverage fees to reduce costs and expand market share [6][45]. Microwave Components Business - The market for microwave components is expected to benefit from increasing national defense spending, which is projected to grow by over 7% in 2023 and 2024, outpacing GDP growth. This trend is anticipated to drive the development of domestic microwave components [7][61]. - The company's microwave components business has shown significant growth, with revenue reaching 37.02 million yuan in 2023, a year-on-year increase of 271.61% [8][68]. Financial Analysis - The company's revenue is projected to decline in 2024 before rebounding in subsequent years, with net profits forecasted at -22 million yuan in 2024, 30 million yuan in 2025, and 58 million yuan in 2026 [2][9]. - The gross margin has remained stable, with a slight increase in 2024, indicating effective cost management and operational efficiency [20][58]. Market Outlook - The audiovisual industry is expected to continue growing, with the total revenue of the broadcasting and network audiovisual industry in China reaching 1.41 trillion yuan in 2023, a year-on-year increase of 13.74% [38]. - The company is well-positioned to leverage technological innovations and expand its service offerings, enhancing its competitive edge in the market [45][47].