HTGD(SH:600487) Minsheng Securities·2024-10-29 13:51Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 17.88 CNY [4]. Core Insights - The company reported a revenue of 42.399 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 20.8%. The net profit attributable to shareholders reached 2.32 billion CNY, up 28.3% year-on-year [2]. - In Q3 2024, the company achieved a revenue of 15.785 billion CNY, a 32.4% increase year-on-year, and a net profit of 705 million CNY, reflecting a 27.3% growth [2]. - The company's gross margin for Q3 2024 was 12.80%, a decrease of 4.57 percentage points year-on-year, primarily due to the rapid development of lower-margin products in the high-voltage smart grid and industrial new energy sectors [2]. - The company is expected to benefit from the acceleration of offshore wind projects in Jiangsu and Guangdong, with significant project launches anticipated in Q4 2024 [2]. - The company has a backlog of orders worth approximately 20 billion CNY in the energy interconnection sector, including 6 billion CNY in marine communication projects [2]. Financial Forecasts - The company is projected to achieve revenues of 56.727 billion CNY in 2024, 67.290 billion CNY in 2025, and 75.952 billion CNY in 2026, with growth rates of 19.1%, 18.6%, and 12.9% respectively [3]. - The net profit attributable to shareholders is expected to be 2.865 billion CNY in 2024, 3.739 billion CNY in 2025, and 4.353 billion CNY in 2026, with growth rates of 33.0%, 30.5%, and 16.4% respectively [3]. - The company’s PE ratio is projected to decrease from 20 in 2023 to 10 by 2026, indicating an improving valuation over time [3]. Business Development - The company is expanding its global channels across multiple business lines, maintaining a leading position in optical communication and submarine cable technology [2]. - Recent project bids in Jiangsu and Guangdong for offshore wind power are expected to drive demand for submarine cables and related services [2]. - The company is actively involved in technological advancements in 5G optical fiber communication and high-capacity submarine cable systems, enhancing its competitive edge [2].