Analysis of the Reasons and Sustainability of the Strong Performance of Zhenyou Technology (688418)

Zhenyou Technology (688418) is a communication equipment enterprise listed on the STAR Market, with core businesses covering localized VPX voice switches, mining 4G communication systems, and satellite network core equipment[0]. The driving factors behind its recent strong performance can be interpreted from multiple dimensions:

1. Policy and Industry Catalysts
   : The State Council’s 14th Five-Year Plan focuses on developing new emergency command communication platforms, driving demand for private network communications. The company is deeply involved in new government and enterprise projects in Inner Mongolia and Guangxi[1], aligning with policy directions. Meanwhile, the communication equipment industry is recovering overall, with growing demand for 5G and private network communications[0].
2. Performance and Fundamental Support
   : From 2017 to 2023, the company’s revenue compound annual growth rate reached 22.47%. In 2023, project delivery and acceptance increased, leading to revenue growth, gross margin improvement, optimized cost control, and enhanced profitability[1]. Institutions like Tianfeng Securities have given an “Overweight” rating, recognizing its growth potential[1].
3. Satellite Internet Business Potential
   : The company is actively deploying satellite network core network projects, and the satellite business is expected to bring new performance flexibility[1], which is in line with the current market focus on the satellite communication sector[0].

The strong performance of Zhenyou Technology is highly aligned with national communication industry policies (emergency communications, satellite internet), and its layout in private network communications and satellite fields allows it to benefit from the industry’s deterministic trends. Positive ratings from institutions further strengthen the market’s confidence in its growth potential[1]. However, technical analysis has limitations due to the lack of real-time data, and subsequent price and volume changes need to be combined to verify the trend strength.

• Sustained policy support: Implementation of the 14th Five-Year Plan for emergency communications and satellite internet policies drives demand growth[1].
• Industry recovery: The communication equipment industry is recovering overall, with increased demand for private network and 5G-related businesses[0].
• Satellite business flexibility: The advancement of satellite internet commercialization may bring incremental revenue to the company[1].

• Satellite business commercialization risk: Slow progress in satellite communication commercialization at home and abroad, and infrastructure progress falling short of expectations[1].
• Overseas business pressure: The global economic downturn affects the construction plans of overseas operators, and export recovery falls short of expectations[1].
• Exchange rate fluctuations: Increased foreign exchange settlement volume from overseas business may lead to exchange losses due to exchange rate fluctuations[1].
• Policy uncertainty: Future policy changes in satellite internet, 5G, and other fields may affect the company’s operations[1].

The strong performance of Zhenyou Technology (688418) is mainly driven by policy catalysts, performance improvement, and satellite business potential, with institutional ratings providing fundamental support. However, due to the lack of real-time technical data, it is necessary to pay attention to signals such as subsequent price breakthroughs and volume expansion to judge the sustainability of the trend. At the same time, vigilance against risk factors such as satellite business commercialization and overseas markets is needed.