ZTT(600522) 华创证券·2024-10-31 14:58Investment Rating - The report maintains a "Recommend" rating for Zhongtian Technology (600522) with a target price of 21.5 RMB [1][4] Core Views - The company's Q3 revenue and net profit showed year-on-year growth, with Q3 revenue reaching 12.9 billion RMB, up 2.3% YoY, and net profit reaching 850 million RMB, up 20.7% YoY [1] - The company secured multiple offshore wind power cable projects in Q3, with new orders exceeding 1 billion RMB, which are expected to support future earnings growth [2] - The report expects a concentrated delivery period for domestic offshore cables in 2025, with European orders secured in 2023 also expected to contribute to profit growth starting from 2025 [2] Financial Performance - For Q1-Q3 2024, the company achieved revenue of 34.32 billion RMB, up 4.8% YoY, and net profit of 2.31 billion RMB, down 13.1% YoY [1] - Q3 gross margin was 14.4%, down 2.4 percentage points YoY, while net margin improved to 6.6%, up 0.8 percentage points YoY [2] - The company's EPS is forecasted to be 1.0/1.2/1.4 RMB per share for 2024-2026, with corresponding P/E ratios of 16/13/12 times [2] Industry and Market Outlook - The company is a leader in the offshore cable industry, with significant growth potential driven by the acceleration of offshore wind power construction as the "14th Five-Year Plan" approaches its end [2] - The report highlights the company's strong position in the domestic market and its expanding presence in the European offshore wind power market [2] Financial Forecasts - Revenue is expected to grow to 51.43 billion RMB in 2024, 61.07 billion RMB in 2025, and 67.23 billion RMB in 2026, with YoY growth rates of 14.1%, 18.7%, and 10.1% respectively [3] - Net profit is projected to increase to 3.28 billion RMB in 2024, 4.07 billion RMB in 2025, and 4.62 billion RMB in 2026, with YoY growth rates of 5.1%, 24.2%, and 13.5% respectively [3]