HTGD(SH:600487) Guotai Junan Securities·2025-03-17 15:08Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 23.06, while the current price is 16.90 [1][13]. Core Views - The company is positioned as a leader in marine communication, breaking the oligopoly in the industry. The government has included "deep-sea technology" in its development plans, indicating a growing focus on marine economy and technology [2][19]. - The company has a comprehensive product capability across the entire industry chain, which may be undervalued by the market. The marine communication and observation capabilities are expected to benefit from future policy developments [2][13]. Summary by Sections 1. Marine Economy and Technology - The government report emphasizes the development of the marine economy and the inclusion of "deep-sea technology" in its new industrial policies, highlighting the increasing attention on marine technology [19]. - The company has rapidly enhanced its marine communication deployment, which is crucial for global connectivity, with over 95% of data transmission occurring via marine communication systems [20][21]. 2. Marine Communication Business - The company has established itself as a top-tier integrator in the marine communication sector, having begun self-research on submarine cables in 2009 and integrating downstream operations [48]. - The company has successfully completed the PEACE submarine cable project, which connects Asia, Africa, and Europe, and has begun commercial operations, providing high-quality communication networks [53]. 3. Financial Performance - The company’s revenue is projected to grow from 47.62 billion in 2023 to 59.22 billion in 2026, with net profit expected to increase from 2.15 billion to 3.73 billion during the same period [12]. - The company has a strong order backlog in marine communication, exceeding 6 billion, indicating robust future revenue potential [34]. 4. Market Position - The company’s subsidiary, Huahai Communication, is ranked among the top four global players in providing submarine cable network solutions, effectively breaking the overseas oligopoly [13][28]. - The company has a significant market share in the domestic marine communication sector, having installed seven submarine systems over the past four years, second only to NEC [32]. 5. Future Outlook - The report anticipates substantial growth in the marine observation sector, driven by government policies and the company’s capabilities in providing comprehensive marine communication solutions [44][45]. - The company is expected to benefit from the increasing investment in marine observation networks, with a projected total investment of approximately 533 billion for comprehensive coverage along China's coastline [44].