HTGD(SH:600487) Changjiang Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company continues to strengthen its competitive advantage by introducing strategic investors into its subsidiary, Jiangsu Hengtong High Voltage Submarine Cable Co., Ltd. The total fundraising amount is expected to be no more than RMB 3 billion [4][5]. - The company anticipates significant growth in its performance for 2023, with a projected net profit attributable to shareholders of approximately RMB 2.06 billion to RMB 2.38 billion, representing a year-on-year increase of 30% to 50% [5]. - The company is actively expanding its market presence in offshore wind cable projects, having secured contracts worth a total of RMB 1.15 billion in 2024 [5]. Summary by Sections Company Overview - The company is focused on enhancing its competitive position through strategic investments in its subsidiary, which will not affect its control over the subsidiary [4]. Financial Performance - The company reported a significant increase in net profit for 2023, driven by demand in ultra-high voltage and smart grid energy sectors [5]. - The projected net profits for 2024 and 2025 are RMB 2.68 billion and RMB 3.18 billion, respectively, with corresponding price-to-earnings ratios of 11 and 10 times [5]. Market Outlook - The offshore wind installation market in China is expected to grow significantly in 2024, with approximately 11-12 GW of projects already under construction or tendered [5]. - The company is well-positioned to benefit from the increasing demand in the downstream sectors of ultra-high voltage and smart grid energy [5].