Investment Rating - The report maintains an "Overweight" rating for the communication industry and its sub-sectors, including communication operators [9]. Core Insights - China Mobile has initiated a centralized procurement project for ordinary optical cable products for 2025-2026, with a notable decrease in both procurement scale and price limits, indicating a downward trend in capital expenditure for traditional connections [2][3]. - The optical fiber and cable manufacturers are expected to seek new growth points in saturated markets, such as undersea cables and data center interconnect (DCI) [2][3]. - The report highlights the need to monitor the bidding progress of optical fiber and cable manufacturers and their breakthroughs in new directions [2][3]. Summary by Sections Market Overview - The communication index rose by 4.96% last week, outperforming the Shanghai Composite Index and Shenzhen Component Index, which increased by 1.92% and 2.29%, respectively [2][13]. - The procurement scale for China Mobile's current round is 0.99 billion core kilometers, down 30.98% from 2021 and 8.65% from 2023 [14]. Procurement Details - The maximum price limit for this round is set at 5.675 billion yuan, a decrease of 42.44% from 2021 and 25.57% from 2023 [14]. - The average procurement price is 57.42 yuan per core kilometer, down 16.6% from 2021 and 18.72% from 2023 [14]. Company Recommendations - The report recommends several companies for investment, including China Mobile, China Telecom, and China Unicom, with target prices and ratings indicating a bullish outlook [10]. - Specific companies highlighted for their potential include Zhongji Xuchuang, Xinyi Sheng, and Tianfu Communication, all rated as "Buy" [10]. Industry Trends - The report notes a significant shift in focus towards AI computing chains and core asset value reassessment within the communication industry [4]. - The demand for optical cables in data centers is projected to account for approximately 5% of global demand by 2025, increasing to over 11% by 2030 [18]. Competitive Landscape - The competitive environment among optical cable manufacturers is expected to intensify due to the reduced procurement scale and price limits, with a maximum share of 19.36% for winning bidders [15][18]. - Major players are expanding into international undersea communication projects, with companies like Hengtong Optic-Electric actively participating in global markets [19].

Investment Rating - The report maintains a "Recommended" investment rating for the wind power industry, indicating an expectation of growth exceeding the benchmark index by more than 5% in the next 3-6 months [2][55]. Core Insights - The report highlights a significant increase in wind turbine bidding, with a total of 33.6 GW bid from January to April 2025, representing a year-on-year growth of 23.2% [11][20]. - The average bidding price for land-based wind power is 1554 RMB/kW, while for offshore wind power, it is 2589 RMB/kW, showing a month-on-month increase of 5.8% for land-based projects [36][40]. - The report identifies three main investment themes in the wind power sector: high domestic offshore wind project reserves, robust land-based wind bidding, and increasing overseas installation growth [40]. Summary by Sections Bidding Volume - From January to April 2025, wind turbine bidding reached 33.6 GW, with offshore and onshore projects accounting for 3.1 GW and 30.5 GW respectively, marking increases of 19.4% and 23.6% year-on-year [11][31]. - In April alone, 12.2 GW was bid, with offshore projects at 0.5 GW and onshore projects at 11.7 GW, reflecting a month-on-month increase of 60.3% for onshore projects [11][20]. Winning Volume - The total winning volume for wind power from January to April 2025 was 32.1 GW, a year-on-year increase of 46%, with offshore and onshore projects contributing 3.8 GW and 28.3 GW respectively [20][21]. - In April, the winning volume was 13.7 GW, with offshore projects at 3.1 GW, showing a significant month-on-month increase of 577.8% [20][21]. Average Winning Price - The average winning price for land-based wind power in April was 1554 RMB/kW, while for offshore wind power, it was 2589 RMB/kW, indicating a competitive pricing environment [36][40]. Investment Recommendations - The report suggests focusing on key companies such as Mingyang Smart Energy, Oriental Cable, and Zhongtian Technology, which are well-positioned to benefit from the anticipated growth in the wind power sector [40].

从上证G60战略新兴产业成份指数持仓样本的行业来看，工业占比36.53%、信息技术占比30.24%、原材 料占比14.25%、通信服务占比9.67%、医药卫生占比9.31%。 资料显示，指数样本每半年调整一次，样本调整实施时间分别为每年6月和12月的第二个星期五的下一 交易日。权重因子随样本定期调整而调整，调整时间与指数样本定期调整实施时间相同。在下一个定期 调整日前，权重因子一般固定不变。特殊情况下将对指数进行临时调整。当样本退市时，将其从指数样 本中剔除。样本公司发生收购、合并、分拆等情形的处理，参照计算与维护细则处理。 金融界5月12日消息，上证指数高开高走，上证G60战略新兴产业成份指数 (G60成指，950049)上涨 1.23%，报935.77点，成交额157.24亿元。 数据统计显示，上证G60战略新兴产业成份指数近一个月上涨7.95%，近三个月下跌4.89%，年至今上涨 0.49%。 据了解，上证G60战略新兴产业成份指数在长三角G60九城市的沪市上市公司中，选取不超过50家规模 最大的战略新兴产业上市公司证券作为指数样本，反映相关地区的战略新兴产业上市公司证券的整体表 现。该指数以2016年 ...

Core Viewpoint - Jiangsu Hengtong Optic-Electric Co., Ltd. is focused on high-quality development and strategic investments in core industries such as communication and energy, leveraging opportunities in new infrastructure, carbon neutrality, and digital transformation to enhance its market competitiveness and operational efficiency [5][6][29]. Meeting Agenda - The company will hold its annual shareholder meeting on May 20, 2025, to discuss the reappointment of the external auditor, Lixin Certified Public Accountants [2][3]. Company Performance - In 2024, the company achieved a revenue of 59.984 billion yuan, representing a year-on-year growth of 28.57% in net profit, amounting to 2.769 billion yuan [5][6]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, was 2.576 billion yuan, reflecting a growth of 26.74% [5]. Strategic Focus - The company is actively investing in the telecommunications and energy sectors, providing leading products and solutions in optical communication, smart grids, and marine energy [5][6]. - The company is enhancing its global industrial and marketing network, positioning itself as a leading provider of information and energy interconnection solutions [5][6]. Technological Advancements - The company has established a "world lighthouse factory" for intelligent manufacturing in the optical communication sector, integrating advanced technologies such as 5G and AI to optimize production processes [7][8]. - The company is focusing on the development of high-end optical fibers and special products, achieving significant advancements in low-loss optical fibers and marine optical fibers [8][9]. International Expansion - The company has expanded its presence in various regions, including Europe, South America, and Southeast Asia, through acquisitions and the establishment of production bases [9][24]. - The acquisition of j-fiber GmbH has strengthened the company's capabilities in special optical fiber production, enhancing its competitive edge in the global market [9][24]. Environmental Commitment - The company is committed to sustainable development and has implemented an ESG management system to promote green manufacturing and energy management [28][29]. - The company has received multiple awards for its efforts in environmental sustainability and corporate governance [28][29]. Future Outlook - The company aims to continue its strategic transformation towards becoming a global leader in marine energy interconnection solutions while expanding its market presence in telecommunications and energy sectors [15][24]. - The company plans to enhance its technological capabilities and maintain a strong focus on innovation to meet the growing demands of the digital economy [30][31].

2024 年年度股东大会会议材料 江苏亨通光电股份有限公司 2024 年年度股东大会 会 议 材 料 二○二五年五月二十日 2024 年年度股东大会会议材料 目 录 一、会议议程 二、会议须知 三、2024 年年度股东大会议案 | 序号 | | 议 案 名 称 | | --- | --- | --- | | 1 | 2024 | 年度董事会工作报告 | | 2 | 2024 | 年度监事会工作报告 | | 3 | 2024 | 年年度报告全文及摘要 | | 4 | 2024 | 年度财务决算报告 | | 5 | 2024 | 年度利润分配预案 | | 6 | 2024 | 年度独立董事述职报告 | | 7 | 2024 | 年度董事、监事、高级管理人员薪酬方案 | | 8 | | 关于续聘立信会计师事务所（特殊普通合伙）为公司 年度外部审计机构 2025 | | | 的议案 | | | 9 | 2024 | 年度奖励基金计提方案 | 2024 年年度股东大会会议材料 江苏亨通光电股份有限公司 2024 年年度股东大会议程 会议时间：现场会议：2025 年 5 月 20 日下午 14:00 网络投票：2025年 ...

Group 1 - The communication index has shown a strong increase of 1.23%, with notable stocks such as Qiyu Technology reaching the daily limit increase and Cambridge Technology rising by 7.18% [1] - The communication ETF has seen a weekly increase of 5.11%, ranking first among comparable funds [1] - The trading volume of the communication ETF was 4.34%, with a transaction value of 4.74 million yuan [3] Group 2 - The communication ETF has experienced a significant growth in scale, increasing by 2.26 million yuan over the past two weeks, leading among comparable funds [3] - The ETF's share count has grown by 22 million shares in the last three months, also ranking first among comparable funds [3] - Zhongji Xuchuang, a leading company in optical communication, reported a revenue of 23.862 billion yuan for 2024, a year-on-year increase of 122.64%, and a net profit of 5.171 billion yuan, up 137.93% [3] Group 3 - The first quarter of 2025 saw Zhongji Xuchuang achieve a revenue of 6.674 billion yuan, a year-on-year increase of 37.82%, and a net profit of 1.583 billion yuan, up 56.83% [3] - Predictions indicate that global AI spending will reach 500 billion dollars in 2025, suggesting sustained high growth in revenue and profit for related companies [3] - Companies in the server and connector sectors are expected to perform well due to increased AI demand and capital expenditure growth from domestic and international internet firms [3] Group 4 - The top ten weighted stocks in the communication index account for 58.92% of the total, including major players like China Telecom, ZTE, and China Mobile [4] - Investors can access optical communication investment opportunities through the communication ETF linked fund [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company achieved a high double-digit growth in both revenue and performance in 2024, with significant contributions from the marine power communication business, and continued sequential growth in Q1 2025 [3][4]. - The company is positioned as a leader in the industry, capitalizing on the policy dividends of the deep-sea economy and the ongoing replacement phase of submarine cables, with expectations for increased cable shipments in Q2 [3][4]. Summary by Sections Revenue and Performance - In 2024, the company reported a revenue of 59.98 billion yuan, a year-on-year increase of 26.0%, and a net profit attributable to shareholders of 2.77 billion yuan, up 28.6% year-on-year. In Q1 2025, revenue was 13.27 billion yuan, a year-on-year increase of 12.6%, with a net profit of 560 million yuan, up 8.5% year-on-year and 22.7% quarter-on-quarter [3][4]. Business Segments - The marine power communication revenue in 2024 was 5.738 billion yuan, a significant increase of 69.6% year-on-year, while the optical communication revenue decreased by 11.0% to 6.562 billion yuan. The company also saw a 50.9% increase in copper conductor revenue [3][4]. Profitability and Cost Management - The company's gross margin for 2024 was 13.2%, a decrease of 2.1 percentage points year-on-year, while the net margin improved to 5.0%, an increase of 0.3 percentage points year-on-year. In Q1 2025, the gross margin was 13.6%, with a net margin of 4.5% [3][4]. Market Opportunities - The government has prioritized "deep-sea technology" in its future industrial development, and the company is enhancing its technological research and industrial layout in the marine communication sector. The company has secured multiple submarine cable projects and has a backlog of orders worth approximately 5.5 billion yuan [3][4]. Earnings Forecast - The company is expected to achieve net profits of 3.343 billion yuan, 3.824 billion yuan, and 4.266 billion yuan for 2025, 2026, and 2027, respectively, with corresponding year-on-year growth rates of 21%, 14%, and 12% [3][4].

Core Viewpoint - The company achieved a revenue of 59.984 billion yuan in 2024, representing a year-on-year increase of 25.96%, and a net profit attributable to shareholders of 2.769 billion yuan, up 28.57% year-on-year, aligning with previous expectations [1] Revenue and Profit Analysis - In Q1 2025, the company reported a revenue of 13.268 billion yuan, a year-on-year increase of 12.58%, and a net profit of 557 million yuan, up 8.52% year-on-year, although lower than previous expectations due to a decrease in non-recurring gains [1] - The company's overseas business revenue exceeded 10 billion yuan for the first time in 2024, with a year-on-year growth of 38.86% [1][2] Business Segment Performance - The marine energy and communication business saw significant growth, while the smart grid and new energy sectors continued to expand. In 2024, smart grid revenue reached 22.184 billion yuan, up 14.68% year-on-year, and industrial and new energy smart revenue was 6.766 billion yuan, up 18.11% year-on-year [2] - The company supplied high-voltage cables to various electric vehicle manufacturers, including Chery, Xiaomi, and others [2] - Light communication revenue was 6.562 billion yuan, down 10.95% year-on-year, primarily due to lower-than-expected demand for ordinary optical cables from telecom operators [2] - The marine energy and communication revenue reached 5.738 billion yuan, a significant increase of 69.60% year-on-year, with a backlog of orders amounting to approximately 18 billion yuan for submarine cables and marine engineering products, and about 8 billion yuan for marine communication [2] Cost and Profitability Metrics - The company's overall gross margin for 2024 was 13.21%, a decrease of 2.01 percentage points year-on-year, mainly due to rising costs of copper and aluminum, as well as a decline in the gross margin of the light communication business [3] - The net profit margin attributable to shareholders was 4.62%, an increase of 0.09 percentage points year-on-year, benefiting from optimized expenses [3] - In Q1 2025, the overall gross margin was 13.62%, down 1.43 percentage points year-on-year, and the net profit margin was 4.20%, down 0.16 percentage points year-on-year [3] Profit Forecast and Valuation - Considering the decline in gross margin for the light communication business, the company is expected to achieve net profits attributable to shareholders of 3.350 billion yuan, 3.969 billion yuan, and 4.753 billion yuan for 2025-2027 [4] - The company is assigned a 15x PE valuation for 2025, leading to a target price of 20.37 yuan [4]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][24]. Core Views - The company is expected to achieve a total operating revenue of 59.984 billion yuan in 2024, representing a year-on-year increase of 25.96%, with a net profit attributable to shareholders of 2.769 billion yuan, up 28.57% year-on-year [1][8]. - The company is focusing on communication networks and energy interconnection businesses, with significant growth in marine energy and communication, which are the main drivers of growth [1][13]. - The company has a strong order backlog, with 18 billion yuan in hand orders in the energy interconnection sector and approximately 8 billion yuan in marine communication [3]. Summary by Sections Financial Performance - In 2024, the company's total operating revenue is projected to be 59.984 billion yuan, with a net profit of 2.769 billion yuan and a non-recurring net profit of 2.576 billion yuan [1][4]. - For Q1 2025, the company reported a revenue of 13.268 billion yuan, a year-on-year increase of 12.58%, and a net profit of 557 million yuan, up 8.52% year-on-year [1][8]. - The company's gross margin for 2024 is 13.21%, a decrease of 2.1 percentage points year-on-year, but it improved to 13.62% in Q1 2025 [2][18]. Business Segments - The revenue from smart grid, marine energy and communication, and industrial and new energy segments for 2024 is expected to be 22.18 billion yuan, 5.73 billion yuan, and 6.77 billion yuan, respectively, with year-on-year growth rates of 14.7%, 69.5%, and 18.1% [1][13]. - The company is actively expanding its high-voltage cable business and special emerging cable applications, with both domestic and international operations showing good growth [1][13]. Market Position and Strategy - The company is the only domestic enterprise capable of delivering submarine cables over 10,000 kilometers and has established a leading position in the marine energy sector with its 500kV cross-linked polyethylene insulated submarine cables [3]. - The company has successfully delivered multiple marine communication projects and is enhancing its production capacity in Jiangsu and Jieyang [1][3]. Profit Forecast - The profit forecast for 2025-2027 is adjusted to 3.24 billion yuan, 3.83 billion yuan, and 4.46 billion yuan, respectively, with the current stock price corresponding to P/E ratios of 12, 10, and 9 times [3][24].

Summary of Hengtong Optic-Electric Conference Call Company Overview - Hengtong Optic-Electric reported a robust revenue growth in 2024, with a non-net profit increase of 26.74% year-on-year. The growth trend continued into Q1 2025, with a non-net profit increase exceeding 30% [2][3]. Key Business Segments - The company operates in multiple sectors: - Optical Communication (11% of revenue) - Smart Grid (approximately 40%) - Industrial and New Energy Intelligence (11%) - Marine Energy and Communication (increased to 10%) [2][6]. - The Marine Energy and Communication segment showed strong profitability with nearly 70% revenue growth [2]. Financial Performance - In 2024, Hengtong achieved nearly 60 billion RMB in revenue, a 25.96% increase year-on-year. The net profit attributable to shareholders reached 2.769 billion RMB, up 28.57% [3]. Strategic Developments - The company has been actively involved in the smart grid sector, collaborating with State Grid and other major players to expand its comprehensive energy business [2][8]. - In the new energy sector, Hengtong delivered the world's largest wind turbine diameter unit and provided solutions for wind power transmission [9]. Marine Communication Achievements - Hengtong has a comprehensive solution capability in marine communication, with over 106,000 kilometers of submarine cable delivered. The company is involved in significant international projects, including the PEACE submarine communication network [10][11]. Order Backlog and Future Projections - As of the end of the reporting period, the company had an order backlog of 5.5 billion RMB, which is expected to be gradually delivered in 2025 and 2026 [4][23]. - The marine communication segment's order backlog increased to 8 billion RMB by the end of Q1 2025, indicating a stable and robust outlook for future performance [26]. International Market Focus - Approximately half of the current orders in the marine energy segment are from international projects, with a focus on large projects in Western and Southern Europe [28]. Financing and Acquisitions - In 2024, Hengtong introduced 10 strategic investors, raising nearly 2.6 billion RMB. The company also completed the acquisition of an Indonesian listed company, increasing its stake to 84.86% [12]. ESG and Corporate Governance - Hengtong has implemented a stock repurchase plan and initiated a restricted stock incentive plan for key employees. The company is also enhancing its ESG initiatives by establishing green factories and supply chain management [13]. Growth Drivers - The growth in the marine communication sector is driven by the need to upgrade existing submarine cables and the increasing demand for cross-ocean communication systems due to advancements in artificial intelligence [20][21]. Conclusion - Hengtong Optic-Electric is positioned for continued growth across its various business segments, supported by strong order backlogs and strategic initiatives in both domestic and international markets. The company remains optimistic about its performance in 2025 and beyond [14][36].