Research Brief | Tongyu Telecommunications Hosts Research Visits by 83 Institutions Including Southern Fund, with Satellite Communications Business as Focal Point (Satellite Institutions)

The company introduced the basic situation, business developments in the first half of 2025, and future business development plans during the meeting. It also provided an analysis of the 2025 interim financial data. In the first half of 2025, microwave antenna business revenue reached approximately 119 million yuan, marking a year-on-year growth of around 84%, with a gross margin of 33%, accounting for 22% of total operating revenue. This segment is the highest-margin among the core business areas. Optical module business revenue grew by 98% year-on-year, currently representing 0.67% of total revenue. Satellite communication business revenue increased by 2.59% year-on-year, reaching 26 million yuan.
Key Points for Investor Interaction
Global Information: The target language for translation is English. R1: "Internet plus" must be translated as "Internet plus" R2: "the Belt and Road" must be translated as "the Belt and Road" Original Content: Satellite Communication Business Growth Prospects: The company's low-orbit broadband satellite internet layout, driven by national strategies, involves collaboration with major operators. Its products cover "star - ground - terminal" scenarios, participate in multiple constellation programs, and have entered the supply chain system of Yuanxin. Although the commercial satellite development progress slowed in the first half of 2025, the company remains optimistic about its business prospects, viewing it as a second growth curve and investing in the upstream and downstream of the related industrial chain. Overseas Market Expansion Plan: The company's overseas sales account for nearly half of its total revenue, with growth driven by 4G construction in Belt and Road countries and 5G network upgrades in some nations. The company has established a sales network in Southeast Asia and plans to strengthen market development in Africa and the Middle East. Its MACRO WIFI product has performed well in testing across multiple countries and has begun small-scale deliveries. The company will seize the opportunity of 4G/5G upgrades in Belt and Road countries to expand MACRO WIFI sales channels, focus on high-end market network upgrade opportunities, and address restrictions in some countries. Special Scenario Product Development and Market Expansion: MACRO WIFI aims to address network coverage issues in remote areas. The company is committed to enhancing regional communication capabilities, with expansion potential in both traditional and satellite communication fields. Related products have significant demand in domestic and international markets, particularly in Southeast Asia, Australia, and other regions. Business Structure and Adjustment Plan: The company is rooted in microwave antennas, optimizing domestic and overseas sales structures. It regards satellite communication as the second growth curve for the next five years, adopting a multi-point development strategy to advance growth. Investment in Sichuan Guangwei Communication: Sichuan Guangwei Communication performed well last year, with stable performance in 400G and 200G products. Its 100G products are developed in collaboration with overseas partners, while 800G products have already been delivered in small quantities abroad. Utilizing silicon photonics technology and low-power design, these products are suitable for multiple applications and are expanding into overseas markets not yet covered. Base Station Antenna Business Planning: The company is optimistic about the base station antenna market over the next 3-5 years. While direct procurement by domestic operators has declined, collaboration with ZTE, Huawei, and operators has ensured overall stability in the domestic market. Overseas markets will benefit from 4G construction and 5G investment growth. The company will intensify its presence in the high-end market, launching the A+P series and green antenna product lines, reducing costs, improving efficiency, optimizing technology, ensuring gross margins, stabilizing traditional business, and actively participating in 5G-A and 6G space-air-ground integrated antenna development