ZTT(600522) 华创证券·2024-10-14 11:42Investment Rating - The report gives a "Recommended" rating for the company with a target price of 17.3 CNY, compared to the current price of 14.72 CNY [1]. Core Insights - The company focuses on communication and energy sectors, with offshore wind power expected to drive performance growth. It has established four major business segments: optical communication, marine, power grid, and new energy, with leading positions in optical communication and submarine cable industries [1][6]. - The domestic offshore wind power market is projected to remain highly prosperous, with expected installations of 8 GW in 2024 and 15 GW in 2025, representing year-on-year growth of 17.1% and 87.5% respectively [1][23]. - The company has a strong technological edge in submarine cables, having secured significant contracts both domestically and internationally, including high-voltage projects in Poland and Germany [1][36]. - The optical communication segment is benefiting from increased demand driven by the construction of a "dual-gigabit" network, with the company maintaining a leading position in order acquisition [1][38]. - The new energy and power grid segments are expected to see sustained growth, supported by global energy structure transformation and increased investment in power grids [1][44]. Summary by Sections 1. Company Overview - The company has over 30 years of experience in the communication and energy sectors, evolving into a leading player in optical communication and submarine cables, ranking sixth globally in optical fiber and cable market share [1][13]. 2. Offshore Wind Power - The domestic offshore wind power market is projected to exceed 20 billion CNY by 2025, with a compound annual growth rate (CAGR) of 59.9% from 2022 to 2025 [1][25]. - The overseas offshore wind market is also expected to grow significantly, with new installations projected to increase from 4.9 GW in 2024 to 31.8 GW by 2030, representing a CAGR of 36.7% [1][26]. 3. Optical Communication - The company is positioned to benefit from the ongoing construction of the "dual-gigabit" network, with a significant increase in demand for optical modules driven by telecom operators' investments in computing power [1][41]. 4. Power Grid and New Energy - The global investment in power grids is expected to average 500 billion USD annually from 2023 to 2030, a significant increase from the previous average of 320 billion USD [1][44]. - The company has seen its power grid revenue grow from 9.45 billion CNY in 2019 to 16.74 billion CNY in 2023, with a CAGR of 15.4% [1][49]. 5. Financial Projections - The company is expected to achieve revenues of 51.43 billion CNY in 2024, 61.07 billion CNY in 2025, and 67.23 billion CNY in 2026, with corresponding net profits of 3.25 billion CNY, 3.94 billion CNY, and 4.50 billion CNY respectively [2][50].