HTGD(SH:600487) Changjiang Securities·2025-05-10 23:32Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company achieved a high double-digit growth in both revenue and performance in 2024, with significant contributions from the marine power communication business, and continued sequential growth in Q1 2025 [3][4]. - The company is positioned as a leader in the industry, capitalizing on the policy dividends of the deep-sea economy and the ongoing replacement phase of submarine cables, with expectations for increased cable shipments in Q2 [3][4]. Summary by Sections Revenue and Performance - In 2024, the company reported a revenue of 59.98 billion yuan, a year-on-year increase of 26.0%, and a net profit attributable to shareholders of 2.77 billion yuan, up 28.6% year-on-year. In Q1 2025, revenue was 13.27 billion yuan, a year-on-year increase of 12.6%, with a net profit of 560 million yuan, up 8.5% year-on-year and 22.7% quarter-on-quarter [3][4]. Business Segments - The marine power communication revenue in 2024 was 5.738 billion yuan, a significant increase of 69.6% year-on-year, while the optical communication revenue decreased by 11.0% to 6.562 billion yuan. The company also saw a 50.9% increase in copper conductor revenue [3][4]. Profitability and Cost Management - The company's gross margin for 2024 was 13.2%, a decrease of 2.1 percentage points year-on-year, while the net margin improved to 5.0%, an increase of 0.3 percentage points year-on-year. In Q1 2025, the gross margin was 13.6%, with a net margin of 4.5% [3][4]. Market Opportunities - The government has prioritized "deep-sea technology" in its future industrial development, and the company is enhancing its technological research and industrial layout in the marine communication sector. The company has secured multiple submarine cable projects and has a backlog of orders worth approximately 5.5 billion yuan [3][4]. Earnings Forecast - The company is expected to achieve net profits of 3.343 billion yuan, 3.824 billion yuan, and 4.266 billion yuan for 2025, 2026, and 2027, respectively, with corresponding year-on-year growth rates of 21%, 14%, and 12% [3][4].