Event
Space satellite industrial development has been one of domestic focuses among topics during the two conferences. Issues such as development impetus in the coming two years and whether it will sustain the rapid growth as in 2008 have been the hotspots.
In 2008, the company reported business turnover of Rmb1994mn (+30.99% yoy), and net profit of Rmb176mn (+32.8% yoy).
Our Analysis and Estimation
Turnover of satellite research & development accounts for over 60% of the total business income.
Satellite application exceeds 30% of the company’s total turnover, including surface equipment manufacturing, satellite navigation, satellite telecommunication, informational chain & picture transference and operation service, etc.
The company’s business will sustain a steady growth in 2009, but overall performance increase will fall back compared with that of the previous year.
Investment Suggestion
We predict the company’s EPS in 2009-2010E to be Rmb0.70 and Rmb0.81 respectively. Given P/E ratio of 30x, its valuation in 2009 and 2010 is Rmb21 and Rmb24.3 separately.