ZTT(600522) 民生证券·2024-08-31 12:30Investment Rating - The report maintains a "Recommend" rating for the company, with expected PE ratios of 11x, 9x, and 8x for 2024, 2025, and 2026 respectively [3][4] Core Views - The company achieved record-high order execution in submarine cables, with total orders in the energy network sector reaching approximately 28.2 billion yuan, including 12.3 billion yuan in marine series and 13.1 billion yuan in power grid construction [2] - Overseas demand for submarine cables and power grid interconnections is expected to continue growing, driven by projects such as Singapore's 4GW new energy power import plan [3] - The company has made significant progress in international market expansion, winning contracts in the Middle East and Europe, and establishing local companies in Germany and Vietnam [3] Financial Performance - In H1 2024, the company reported revenue of 21.416 billion yuan, a 6.32% YoY increase, but net profit attributable to shareholders decreased by 25.31% to 1.460 billion yuan [2] - Q2 2024 saw revenue growth of 11.00% YoY to 13.174 billion yuan, while net profit attributable to shareholders decreased by 30.57% to 824 million yuan [2] - The company's gross margin in Q2 2024 was 15.84%, a slight decrease of 0.58 percentage points YoY [2] Business Development - The company is benefiting from domestic deep-sea projects, with recent approvals in Shanghai, Guangxi, and Hebei expanding the scope of national deep-sea construction [3] - In the fiber optic sector, demand for G.654.E and multimode fibers is expected to increase significantly due to AI, data centers, and 400/800G long-haul trunk line construction [3] - The company has implemented a global strategy with 14 overseas marketing centers, 44 overseas offices, and products exported to over 160 countries and regions [3] Financial Projections - Revenue is expected to grow from 45.065 billion yuan in 2023 to 64.111 billion yuan in 2026, with a CAGR of approximately 12.5% [7] - Net profit attributable to shareholders is projected to increase from 3.117 billion yuan in 2023 to 5.469 billion yuan in 2026 [7] - The company's ROE is forecasted to improve from 9.40% in 2023 to 11.94% in 2026 [8] Operational Metrics - The company's gross margin is expected to improve from 16.22% in 2023 to 17.83% in 2026 [8] - Asset turnover ratio is projected to increase from 0.87 in 2023 to 1.60 in 2026 [8] - EPS is forecasted to grow from 0.91 yuan in 2023 to 1.60 yuan in 2026 [8]