HTGD(SH:600487) Haitong Securities·2024-09-06 00:09Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company reported a strong performance in its 2024 semi-annual report, achieving a revenue of 26.614 billion yuan, a year-on-year increase of 14.83%, and a net profit attributable to shareholders of 1.609 billion yuan, up 28.80% year-on-year [6][7] - The company has a robust order backlog, with approximately 21 billion yuan in orders related to energy interconnection and over 300 million USD in orders for the PEACE submarine cable communication system [6] - The company is enhancing its production capacity both domestically and internationally, focusing on establishing production bases in Egypt, Indonesia, and India, as well as expanding its operations in Mexico [6] Summary by Sections Financial Performance - For the first half of 2024, the company achieved a revenue of 26.614 billion yuan, with a net profit of 1.609 billion yuan, and a gross margin of 16.54% [6] - In Q2 2024, the revenue was 14.829 billion yuan, reflecting a year-on-year increase of 20.46% and a quarter-on-quarter increase of 25.84% [6] Business Segments - The company has a diverse business portfolio with significant orders in various sectors, including submarine cables and marine communication [6] - The company is actively improving its production capabilities in the optical communication sector and expanding its high-end aluminum and aluminum alloy cable projects [6] Cost Management - The company has successfully reduced its selling, administrative, and research expenses as a percentage of revenue, indicating effective cost control [7] Earnings Forecast - The company is projected to achieve revenues of 56.079 billion yuan, 60.543 billion yuan, and 64.786 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 2.909 billion yuan, 3.416 billion yuan, and 3.909 billion yuan [7][11]