Transcom Instruments(831961) 中国银河·2024-08-07 11:00Investment Rating - The report gives a "Buy" rating for the company, based on strong product demand and core competitiveness [4]. Core Views - The company focuses on independent research and development in the wireless communication field, having received multiple national awards for its technological advancements [1][12]. - The company has a clear business structure and has shown improvement in gross and net profit margins, with a gross margin of 49.59% and a net margin of 11.81% in 2023 [1][28]. - The industry is experiencing rapid growth due to supportive national policies and increasing downstream demand, particularly in sectors like defense, smart connected vehicles, and satellite internet [1][40]. Summary by Sections Company Overview - The company specializes in RF communication testing technology and provides comprehensive solutions, having won the National Science and Technology Progress Award in 2023 [1][12]. - It has a strong focus on three main product directions: wireless communication, radio monitoring, and smart manufacturing [16]. Financial Performance - In 2023, the company achieved a revenue of 270 million yuan and a net profit of 34 million yuan, with a projected revenue growth of 33.70% in 2024 [1][3]. - The company’s R&D expenses were 86.86 million yuan in 2023, representing a high percentage of revenue [32]. Industry Dynamics - The wireless communication testing equipment industry is expected to grow significantly, driven by advancements in 5G and 6G technologies, as well as increasing demand from various sectors [1][40]. - The defense sector's budget has been increasing, which will benefit companies providing testing solutions [40][43]. Investment Recommendations - Revenue projections for 2024-2026 are 361 million yuan, 412 million yuan, and 472 million yuan, with corresponding net profits of 46 million yuan, 54 million yuan, and 62 million yuan [1][3]. - The report highlights the company's strong product demand and broad application range, supporting the "Buy" rating [1][4].