ZTT(SH:600522) Hua Yuan Zheng Quan·2025-06-19 08:55Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [5][8]. Core Views - The company is a leading supplier of power and communication transmission equipment, benefiting from the resonance of domestic and international offshore wind developments [5][7]. - The company has a diversified business structure focusing on marine equipment, optical communication, and power transmission [7][21]. - The offshore wind power sector is expected to rebound after years of low activity, with multiple provinces in China announcing future offshore wind power plans [10][59]. - The company is positioned to capitalize on the growing demand for optical communication driven by 5G network construction and increasing computing power needs [7][10]. Summary by Sections Market Performance - The closing price is 13.85 CNY, with a total market capitalization of 47,269.35 million CNY and a circulating market capitalization of the same amount [3]. Financial Forecast and Valuation - Revenue projections for 2023 to 2027 are 45,065 million CNY, 48,055 million CNY, 53,352 million CNY, 58,609 million CNY, and 64,577 million CNY, respectively, with growth rates of 11.91%, 6.63%, 11.02%, 9.85%, and 10.18% [6][8]. - The forecasted net profit attributable to shareholders for the same period is 3,117 million CNY, 2,838 million CNY, 3,419 million CNY, 4,188 million CNY, and 5,020 million CNY, with growth rates of -3.03%, -8.94%, 20.46%, 22.51%, and 19.86% [6][8]. - The price-to-earnings (P/E) ratios for 2025 to 2027 are projected to be 13.83, 11.29, and 9.42, respectively [6][8]. Business Overview - The company has a strong presence in the power transmission sector, focusing on a full product chain of power equipment, including special conductors and various types of cables [21][25]. - In the marine equipment sector, the company emphasizes the development of new technologies and materials for offshore wind energy transmission [7][24]. - The optical communication segment includes a wide range of products and services, positioning the company as a global leader in this field [7][21]. Investment Logic - The offshore cable market is characterized by strong profitability and a favorable competitive landscape, particularly with the trend towards high voltage and flexible direct current [10][29]. - The company is actively expanding into the European market, which is experiencing a peak in offshore wind construction, creating opportunities for domestic manufacturers [10][59]. - The company’s early investments in energy storage and its comprehensive product offerings position it well to benefit from the ongoing energy transition [7][10].