Tianfeng Securities gave an overweight rating to SIEMIC Mobile

Mondo Finance Updated on 2024-01-30

Tianfeng ** shares *** Kang Zhiyi, Tang Haiqing, Wang Yihong recently conducted research on SIEMIC Mobile and released a research report "Steady Growth of Mobile Communication Equipment, Deep Participation in Low-orbit Satellite Internet", this report gives an overweight rating to SIEMIC Mobile, and the current stock price is 6$94.

SIEMIC Mobile (688387).

A global leader in the field of mobile communications, with continuous improvement in operation.

The company is the only high-tech enterprise controlled by a central enterprise engaged in the formulation of international standards for mobile communications, the research and development and industrialization of core technologies, and its products mainly include mobile communication network equipment and mobile communication technology services. After Datang Mobile and Hongxin Communications jointly reorganized and established CITIC Mobile Communication Technology Co., Ltd., CITIC Mobile was successfully listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange in September 2022. With the steady progress of China's 5G construction, revenue has grown steadily and losses have continued to decrease.

The share of new domestic construction continued to increase, and overseas revenue continued to grow rapidly.

Since 2011, the company has carried out research on 5G standards and basic technologies, and is one of the main undertaking units of national 5G science and technology projects, and has led or independently undertaken 5 6G projects of the Ministry of Science and Technology. By the end of 2022, the company's 5G proposal contribution accounted for 389%, ranking 7th. In 2020, China Mobile's 5G wireless main equipment will be procured, and the company's share will only account for 262%, while in 2023-2024 5G700M macro base stations and 26g/4.The comprehensive winning share of 9G base station centralized procurement bidding exceeded 7%. In recent years, thanks to the "One Belt, One Road" policy, the company has accelerated the construction of its international marketing system, and its international business revenue will increase by more than 100% year-on-year in 2022.

The mobile communication technology service business ranks among the top in China.

The company's mobile communication integration service is mainly composed of three parts: wireless network planning, wireless network construction and wireless network optimization. As of September 2022, the company has set up branches, representative offices and technical support centers in 31 provinces, municipalities and autonomous regions across the country. According to the first half of 2018-2021, there are 7 non-communication operator enterprises, and the company ranks third, with a comprehensive market share of about 231%, second only to Zhongbei and Runjian.

Deeply participate in the low-orbit satellite Internet, and promote the formulation of domestic and foreign standards.

The Earth's low earth orbit can accommodate about 60,000 satellites, and countries around the world are accelerating the construction of low-orbit satellite networks. The company is deeply involved in the construction of China's low-orbit satellite Internet, and has the ability to provide a full range of products and technical services such as communication payloads, information stations, core networks, network management, and test instruments, and actively expands the civil satellite Internet market. The company has established a satellite-ground fusion laboratory and issued a first-class policy to vigorously promote the formulation of domestic and foreign standards for 5GNTN.

Profit** & Investment Advice.

It is estimated that the net profit attributable to the parent company from 2023 to 2025 will be -28.7 billion yuan, 61.71 million yuan, 48.2 billion yuan, a year-on-year increase of %. We believe that the company's domestic share of mobile communication equipment has increased, overseas platforms have achieved rapid growth, and the company is deeply involved in the construction of low-orbit satellite Internet, which can provide rich products, and there is a possibility of rapid growth in the future. Initial coverage, with an "overweight" rating.

Risk warning: the risk of not yet making a profit;There is a risk of a large gap compared with international leading enterprises;The risk of high customer concentration;The risk that the 5G application business model is not yet mature.

A total of 3 institutions have rated the stock in the last 90 days, ** 2 have rated and 1 have overweight ratings.

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