SHENGLU TELECOM(002446) 上海证券·2024-07-05 01:30Investment Rating - The report gives a "Buy" rating for the company, with expected revenue growth and profitability improvements in the coming years [89][107] Core Views - The company is transitioning from 5G infrastructure construction to application innovation, with a focus on indoor communication systems and satellite communication [9][16] - Military electronics business remains the core profit driver, with high gross margins above 50% [85][137] - Emerging businesses in satellite communication and autonomous driving are expected to become new growth drivers [107][63] 5G Industry Analysis - China has built 2.312 million 5G base stations by end-2022, accounting for 63.5% of global total [1] - Global 5G smartphone penetration is expected to reach 72% by 2024, indicating limited growth space [5] - China's 5G package users reached 1.374 billion by end-2023, showing high market penetration [7] Company Business Segments Military Electronics - Contributed 48.8% of total revenue in 2023 with gross margin above 50% [137] - Subsidiaries have over 20 years of technical expertise in microwave and millimeter-wave components [74] Civil Communication - Base station antenna business expected to grow 43% in 2024 [82] - Microwave communication antenna revenue projected to increase 10-14% annually from 2024-2026 [84] - Indoor terminal antenna business forecast to grow 5.5% annually [75] Emerging Businesses - Satellite antenna business expected to grow rapidly from 12.5 million yuan in 2024 to 225 million yuan in 2026 [84] - Autonomous driving related GNSS equipment development progressing well [63] Technological Advantages - Developed new cable-free base station antenna technology to reduce costs [24] - Achieved mass production of dual-frequency microwave antennas with 98% pass rate [29] - Possesses leading ultra-wideband up/down conversion technology in domestic market [72] Market Position - Won 18.24% share in 2022 operator antenna procurement [39] - Maintains stable partnerships with major telecom operators and equipment manufacturers [20][22]