ZTT(600522) EBSCN·2024-11-01 00:08Investment Rating - The report maintains a "Buy" rating for Zhongtian Technology (600522.SH) with a target price of 15.81 CNY [5]. Core Views - The company reported a significant increase in net profit for Q3 2024, with a year-on-year growth of 20.67% [1]. - The company has a robust order backlog in the energy network sector, amounting to approximately 282 billion CNY, with substantial growth in offshore wind orders [1][2]. - The domestic offshore wind power sector is expected to enter a new construction peak in the next 5-10 years, supported by government policies and funding [2]. - The report projects a decrease in net profit forecasts for 2024-2025 due to lower installation volumes in offshore wind projects, with revised estimates of 33.17 billion CNY and 39.88 billion CNY respectively [3]. Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a revenue of 34.316 billion CNY, a year-on-year increase of 4.78%, while the net profit was 2.311 billion CNY, down 13.12% [1]. - In Q3 2024, revenue reached 12.9 billion CNY, up 2.32%, and net profit was 850 million CNY, reflecting a 20.67% increase [1]. Order Backlog and Market Opportunities - As of August 27, 2024, the company has an order backlog of approximately 282 billion CNY in the energy network sector, with significant contributions from offshore wind, grid construction, and new energy sectors [1]. - The report highlights the increasing demand for offshore wind projects, with a notable rise in overseas orders [1][2]. Industry Outlook - The domestic offshore wind power sector is entering a critical development phase, with policies from various provinces promoting deep-sea wind power projects [2]. - The report anticipates that by 2025, large-scale offshore wind projects will predominantly be located in deep waters, enhancing their economic viability [2]. Profit Forecast and Valuation - The report adjusts the net profit forecasts for 2024 and 2025 downwards due to anticipated delays in offshore wind project confirmations, with a new forecast for 2026 set at 44.98 billion CNY [3]. - The current stock price corresponds to a price-to-earnings ratio (PE) of 16x for 2024, 14x for 2025, and 12x for 2026 [3].