HTGD(SH:600487) Western Securities·2025-10-30 11:15Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong expected return compared to the market benchmark over the next 6-12 months [5][11]. Core Insights - The company reported Q3 revenue of 17.57 billion yuan, a year-on-year increase of 11.3%, but a quarter-on-quarter decrease of 6.4%. The net profit attributable to shareholders was 760 million yuan, up 8.1% year-on-year but down 27.8% quarter-on-quarter. For the first three quarters, total revenue reached 49.62 billion yuan, a 17% increase year-on-year, with a net profit of 2.38 billion yuan, up 2.6% year-on-year [1][5]. - The company has a robust order backlog, with over 20 billion yuan in orders in the energy interconnection sector and over 7 billion yuan in marine communication business. The PEACE transoceanic cable communication project has orders exceeding 300 million USD [1][2]. - The company has made significant breakthroughs in high-end specialty optical fibers, achieving international advanced levels with core technologies. A new R&D center for advanced optical fiber materials is under construction, expected to be completed in early 2026 [2]. Financial Performance Summary - For 2023, the company is projected to achieve a revenue of 47.62 billion yuan, with a growth rate of 2.5%. The net profit is expected to be 2.15 billion yuan, reflecting a growth rate of 36% [3][10]. - The earnings per share (EPS) is forecasted to be 0.87 yuan in 2023, increasing to 1.92 yuan by 2027. The price-to-earnings (P/E) ratio is expected to decrease from 25.7 in 2023 to 11.7 in 2027 [3][10]. - The company’s gross margin is projected to be 15.3% in 2023, declining to 13.7% by 2027, while the return on equity (ROE) is expected to rise from 8.7% in 2023 to 12.7% in 2027 [10].