Investment Rating - The report maintains a "Buy" rating for the company [6][4]. Core Views - The company's performance has been under pressure due to industry adjustments and high R&D investments, with Q3 revenue at 928 million RMB, down 21.02% year-on-year and 22.00% quarter-on-quarter. The net profit attributable to shareholders was -178 million RMB, a significant decline of 1529.15% year-on-year and 312.51% quarter-on-quarter [1][4]. - The company is expected to achieve growth in 2026-2027 driven by two main growth drivers: the realization of business in Beidou, unmanned equipment, satellites, and low-altitude sectors, and a gradual recovery in wireless communication terminal business as the military informationization "14th Five-Year Plan" construction cycle begins [1][4]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of 3.158 billion RMB, down 16.17% year-on-year, and a net profit of -175 million RMB, down 194.73% year-on-year. The non-recurring net profit was -227 million RMB, down 374.65% year-on-year [1][3]. - The gross margin for the first three quarters was 23.99%, a decrease of 5.98 percentage points year-on-year, primarily due to changes in revenue structure with a higher proportion of lower-margin civilian products [3]. R&D and Strategic Initiatives - The company has maintained high R&D investment levels, with R&D expenses reaching 690 million RMB in the first three quarters, resulting in an R&D expense ratio of 21.85%, an increase of 3.21 percentage points year-on-year. This investment is aimed at building a solid competitive advantage in the long term [3][4]. - The company is actively expanding into emerging sectors such as chips, satellite internet, Beidou, intelligent unmanned systems, low-altitude economy, 6G, robotics, brain-computer interfaces, and smart wearables, while also accelerating its international market presence [2][4]. Profit Forecast and Valuation - The revenue and profit margin forecasts have been adjusted downward due to slower-than-expected recovery in military product business and pricing impacts. The projected net profits for 2025-2027 are 41 million RMB, 486 million RMB, and 652 million RMB, respectively, reflecting significant downward adjustments [4][17]. - The target price for the company is set at 13.70 RMB, based on a 70x PE valuation for 2026, considering its leading position in the navigation industry and strategic layouts in emerging sectors [4][20].

Group 1 - The fourth Beidou Scale Application International Summit was held in Zhuzhou, Hunan, showcasing Haige Communication's innovations in "navigation and communication integration" [1] - Haige Communication, in collaboration with China Mobile, launched the first consumer-oriented chip supporting "Beidou short message + Beidou positioning," integrating bidirectional communication and dual-frequency high-precision positioning [1][3] - The Beidou system is expected to become a core time-space foundation for digital communication networks, providing reliable support for communication in remote areas [3] Group 2 - Haige Communication introduced a series of navigation and communication integration IP products at the summit, designed for low-orbit narrowband communication and navigation enhancement [3] - The company is involved in the research of key technologies for navigation and communication integration, contributing to the formulation of national and industry standards in sectors like transportation and energy [3][4] - As a leading enterprise with core technologies in navigation and communication integration, Haige Communication is rapidly promoting the large-scale application of technological innovations in the "Beidou + consumer electronics" market [4]

Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, primarily due to industry client adjustments and cyclical fluctuations, alongside increased investment in emerging fields, which has pressured short-term profits [1][2]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 2.229 billion yuan, a year-on-year decrease of 13.97% [2]. - The net profit attributable to shareholders was 2.5138 million yuan, representing a drastic year-on-year decline of 98.72% [1][2]. - The overall gross margin was 27.36%, down by 4.76 percentage points compared to the previous year [3]. Revenue Breakdown - Wireless communication revenue was 690 million yuan, a slight decrease of 5.73%, accounting for 30.93% of total revenue [2]. - Beidou navigation revenue fell to 280 million yuan, down 32.25%, with its share dropping from 15.96% to 12.57% [2]. - Aerospace revenue was 140 million yuan, a minor decline of 11.04% [2]. - Smart ecological revenue was 1.082 billion yuan, down 13.15%, but still contributed nearly half of total revenue [2]. R&D and Strategic Initiatives - The R&D expense ratio reached a historic high of 20.05%, indicating the company's commitment to transformation [3]. - The company is advancing the development of "Beidou + 5G" integrated chips and has collaborated with China Mobile on consumer-grade chips [3]. - The company has initiated a share repurchase plan of 200 to 400 million yuan for equity incentives [3]. Future Outlook - The company has revised its profit forecasts downward, expecting net profits of 334 million yuan and 567 million yuan for 2025 and 2026, respectively, with a new estimate of 1.027 billion yuan for 2027 [4]. - Despite the current challenges, the company maintains a "buy" rating due to its leadership in wireless communication and Beidou navigation, benefiting from long-term trends in defense informationization and active engagement in satellite internet and low-altitude economy sectors [4].