HTGD(SH:600487) Changjiang Securities·2025-09-01 14:16Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company achieved steady revenue growth in Q2 2025, with improvements in both year-on-year and quarter-on-quarter expenses. The deep-sea economic policy benefits are becoming evident, leading to a renewal of undersea cables, and the company has a substantial order backlog in its marine business. Breakthroughs have been made in high-end specialty optical fibers, including ultra-low loss, multi-mode, and hollow-core fibers. Continuous share buybacks and shareholder increases reflect long-term confidence [3][9][10]. Summary by Relevant Sections Financial Performance - In H1 2025, the company reported revenue of 32.05 billion yuan, a year-on-year increase of 20.4%. The net profit attributable to shareholders was 1.61 billion yuan, up 0.2% year-on-year. In Q1 2025, revenue reached 18.78 billion yuan, a year-on-year increase of 26.6% and a quarter-on-quarter increase of 41.5% [3][9]. Business Opportunities - The government has prioritized "deep-sea technology" in its future industry focus, benefiting the company as a key player. The company is one of the top four global providers of comprehensive solutions for transoceanic submarine cable systems, with over 108,000 kilometers of submarine cable delivered. In the marine energy sector, the company continues to win bids for offshore wind and oil and gas projects, with an order backlog of approximately 20 billion yuan in energy interconnection and about 7.5 billion yuan in marine communication [9][10]. Technological Advancements - The company is seizing opportunities in AI development, achieving key breakthroughs in high-end optical fiber products. The G.654.E fiber has industry-leading attenuation levels, and self-developed OM4/OM5 multi-mode fibers are widely used in medium and large data centers. The hollow-core anti-resonance fiber has achieved internationally advanced loss values (≤0.2 dB/km) and has mass delivery capabilities [9][10]. Shareholder Confidence - The company completed a new round of share buybacks in January 2025, repurchasing 14.17 million shares for 156 million yuan, which will be used for an employee stock ownership plan. Additionally, the controlling shareholder announced a plan to increase its stake in the company by no less than 150 million yuan and no more than 300 million yuan over the next 12 months, demonstrating long-term confidence in the company's development [9][10]. Profit Forecast and Investment Suggestion - The company is expected to maintain steady revenue growth, with net profits projected at 3.343 billion yuan, 3.824 billion yuan, and 4.266 billion yuan for 2025-2027, corresponding to year-on-year growth rates of 21%, 14%, and 12%. The corresponding price-to-earnings ratios are 15x, 13x, and 12x, respectively, with a strong recommendation to "Buy" [9][10].