HTGD(SH:600487) ZHONGTAI SECURITIES·2024-02-01 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) with a market price of 11.09 CNY [2]. Core Views - The company is expected to achieve a net profit of 2.059 to 2.375 billion CNY for the year 2023, representing a year-on-year growth of 30.00% to 50.00%. The net profit after deducting non-recurring gains and losses is projected to be between 1.879 to 2.233 billion CNY, indicating a growth of 22.00% to 45.00% compared to the previous year [1]. - The company has shown rapid growth in annual performance, with a projected net profit median of 2.217 billion CNY, reflecting a year-on-year growth rate of 39.96%. The median net profit after deducting non-recurring gains is estimated at 2.056 billion CNY, with a growth rate of 33.51% [3]. - The company is positioned as a leader in the domestic optical cable market, focusing on communication and energy interconnection sectors. The demand for optical communication is expected to benefit from the ongoing development of 5G networks, IoT, and AIGC applications [4][5]. Summary by Sections Financial Performance - The company's revenue for 2023 is projected to be 54.261 billion CNY, with a year-on-year growth rate of 17%. The net profit is expected to reach 2.302 billion CNY, with a growth rate of 45% [2][6]. - The earnings per share (EPS) for 2023 is estimated at 0.93 CNY, with projections of 1.14 CNY for 2024 and 1.36 CNY for 2025 [2][6]. Market Position and Opportunities - The company has secured a bid for 7.17 billion CNY in ordinary optical cable products, achieving a market share of 11.61%, ranking first among the top four bidders [3]. - The company has a substantial order backlog in the marine communication sector, with approximately 6 billion CNY in orders as of Q3 2023 [3]. - The company is actively expanding its presence in the offshore wind power sector, with a significant order amounting to 17 billion CNY in energy interconnection products [3]. Strategic Initiatives - The company plans to repurchase shares worth between 100 million to 200 million CNY, with a total of 9,077,908 shares repurchased as of January 31, 2024 [5]. - The company is focusing on enhancing its core product technology research and cost control in the communication and energy sectors, which is expected to further improve profitability [3].