SHENGLU TELECOM(002446) 民生证券·2024-04-28 06:30Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its business layout and technological advancements in the military electronics and satellite internet sectors [9]. Core Insights - The company reported a revenue of 1.187 billion yuan in 2023, a year-on-year decrease of 16.56%, with a net profit attributable to shareholders of 52 million yuan, down 78.49% year-on-year. For Q1 2024, revenue was 279 million yuan, a decrease of 19.19% year-on-year, and net profit was 34 million yuan, down 53.08% year-on-year [9]. - The decline in performance is attributed to goodwill impairment, which significantly impacted the company's earnings. In Q4 2023, the company recorded a revenue of 213 million yuan, a year-on-year decrease of 36.91%, resulting in a net loss of 111 million yuan [9]. - The demand in both military and civilian sectors is increasing, with the 5G infrastructure in China continuing to expand. By the end of 2023, there were 3.377 million 5G base stations, a 46% increase year-on-year. Additionally, national defense spending reached 1.58 trillion yuan, a 7.2% increase year-on-year [9]. - The company is increasing its R&D investment, with R&D expenses reaching 114 million yuan in 2023, a 5.10% increase year-on-year. The R&D expense ratio was 9.64%, up 1.99 percentage points year-on-year [9]. - The company expects net profits for 2024, 2025, and 2026 to be 220 million yuan, 280 million yuan, and 360 million yuan, respectively, with corresponding PE ratios of 28x, 22x, and 17x [9]. Financial Summary - The company's revenue for 2023 was 1.187 billion yuan, with a projected increase to 1.662 billion yuan in 2024, 2.078 billion yuan in 2025, and 2.556 billion yuan in 2026 [9][18]. - The net profit attributable to shareholders is expected to rise from 52 million yuan in 2023 to 222 million yuan in 2024, 282 million yuan in 2025, and 358 million yuan in 2026 [9][18]. - The company's gross margin for 2023 was 37.58%, a decrease of 1.56 percentage points year-on-year, while the net profit margin was 4.38%, down 12.66 percentage points year-on-year [9].