ZTT(600522) Changjiang Securities·2024-09-03 06:44Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company's revenue for the first half of 2024 reached 21.416 billion, a year-on-year increase of 6.32%, while the net profit attributable to shareholders was 1.460 billion, a decline of 25.31% [7]. - The marine and energy businesses are experiencing rapid growth, with significant order fulfillment contributing to revenue stability [7][8]. - The company has a robust order backlog in the energy network sector, amounting to approximately 28.2 billion, with marine series orders at about 12.3 billion [8]. Summary by Sections Revenue and Profitability - In Q2 2024, the company achieved revenue of 13.174 billion, a year-on-year increase of 11%, while the net profit attributable to shareholders was 0.824 billion, down 30.57% year-on-year but up 29.5% quarter-on-quarter [7]. - The decline in net profit is partly attributed to significant losses from fair value changes related to stock holdings in Guangxun Technology, impacting earnings by 0.195 billion [7]. Cost and Investment - The company increased its marketing and R&D expenditures, with sales expenses and R&D costs rising by 27.22% and 23.82% respectively, reflecting enhanced sales team development and product R&D in the communication sector [7]. - A second employee stock ownership plan was implemented, aimed at boosting employee morale and management governance [7]. Market Position and Future Outlook - The marine and renewable energy sectors are showing signs of recovery, with the company’s execution of orders reaching historical peaks, indicating high revenue certainty in the future [8]. - The company is well-positioned in the market with deep technical expertise in submarine cables and marine engineering, maintaining a leading market share and competitive advantage [8]. - Profit forecasts for 2024-2026 project net profits of 3.395 billion, 3.882 billion, and 4.521 billion respectively, with corresponding year-on-year growth rates of 9%, 14%, and 16% [8].