ZTT(600522) 海通证券·2024-11-09 09:55Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company reported a revenue of 34.316 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 4.78%. The net profit attributable to shareholders was 2.311 billion yuan, down 13.12% year-on-year [5] - The company has seen a significant increase in contract liabilities, which reached 2.781 billion yuan at the end of Q3 2024, up from 2.227 billion yuan at the end of H1 2024 [6] - The company is shifting its fundraising focus towards overseas cable projects, with plans to allocate 1.062 billion yuan to various projects, including a new environmentally friendly cable project in Turkey [6] Financial Performance Summary - For Q3 2024, the company achieved a revenue of 12.9 billion yuan, a year-on-year increase of 2.32%, while the net profit attributable to shareholders was 0.851 billion yuan, up 20.67% year-on-year [5] - The gross margin for Q3 2024 was 14.43%, down 2.43 percentage points year-on-year, while the net profit margin was 6.60%, an increase of 1.00 percentage point year-on-year [5] - The company expects revenues of 49.553 billion yuan, 53.908 billion yuan, and 57.894 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 3.291 billion yuan, 3.913 billion yuan, and 4.485 billion yuan for the same years [7][8] Business Segment Forecast - The revenue from the power grid construction segment is expected to grow from 16.741 billion yuan in 2023 to 23.306 billion yuan in 2026, with a gross margin of 15% [9] - The marine series segment is projected to increase from 3.740 billion yuan in 2023 to 7.294 billion yuan in 2026, with a gross margin of 28% [9] - The new energy segment is anticipated to grow from 7.209 billion yuan in 2023 to 9.550 billion yuan in 2026, with a gross margin of 12.34% [9] Valuation and Investment Recommendations - The company is assigned a dynamic PE range of 17-18X for 2025, corresponding to a fair value range of 19.49-20.64 yuan per share [7] - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.96 yuan, 1.15 yuan, and 1.31 yuan respectively [11]