Geovis(688568) 国泰君安·2024-10-23 00:10Investment Rating - The report initiates coverage on the company with an "Overweight" rating, setting a target price of 50.72 RMB [3][4] Core Views - The company is a leader in the digital earth field, leveraging its core advantages in geospatial big data to expand into low-altitude economy and commercial aerospace sectors, driving rapid revenue growth [2][3] - The company's core product, GEOVIS Digital Earth, has undergone multiple technological iterations and is a well-known brand in the industry [3] - The company is actively exploring new opportunities in commercial aerospace and low-altitude economy, aiming to integrate AI deeply into these sectors to enhance product and service intelligence [3][10] Financial Projections - Revenue is projected to grow from 3.856 billion RMB in 2024 to 6.988 billion RMB in 2026, with EPS expected to increase from 0.89 RMB in 2024 to 1.79 RMB in 2026 [3][11] - Net profit attributable to the parent company is forecasted to rise from 482 million RMB in 2024 to 972 million RMB in 2026 [11] Business Segments - GEOVIS software sales and data services are expected to maintain a high growth rate of 40% from 2024 to 2026, with a gross margin of around 70% [11] - The system integration equipment business is projected to grow at a slower pace, with revenue growth rates of 40%, 30%, and 20% from 2024 to 2026, respectively, and a declining gross margin [11] Valuation Analysis - Using the PE valuation method, the company is valued at 38.5 times its 2025 earnings, resulting in a fair value of 27.557 billion RMB [13][14] - The PS valuation method suggests a fair value of 27.741 billion RMB, based on a 5.1 times multiple of 2025 sales [15][17] Industry and Market Position - The company is a pioneer in the digital earth industry in China, with a strong market position and technological advantages [19][20] - The global digital earth market is expected to grow significantly, with the company well-positioned to capitalize on this growth due to its leading position in the domestic market [54][55] Strategic Initiatives - The company is focusing on expanding its commercial aerospace and low-altitude economy businesses, aiming to build a comprehensive and self-sufficient industrial system [3][10] - The company is also developing a "4+2" model for commercial aerospace, covering satellite manufacturing, launch, application, and service, as well as ground infrastructure [36] Technological Innovation - The company has built its own digital earth supercomputer and connected it to a national-level intelligent computing center, enhancing its technological capabilities [3][21] - The company is continuously innovating in areas such as big data, cloud computing, and AI, which are critical for its future growth [22][23] Market Opportunities - The company is well-positioned to benefit from the rapid growth of the commercial aerospace and low-altitude economy sectors, which are expected to drive future revenue growth [3][10] - The company's strategic focus on digital earth technology and its integration with AI and other advanced technologies will likely open up new market opportunities [20][21]