TMT(SH:600458) Great Wall Securities·2024-04-08 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index in the next six months [10]. Core Insights - The company focuses on high-performance polymer materials and has made significant breakthroughs in wind power and new materials, indicating a broad market potential. The company has a strong order backlog and substantial growth opportunities [7]. - Projected net profits for 2024-2026 are estimated at 688 million, 925 million, and 1,056 million yuan, with corresponding EPS of 0.83, 1.12, and 1.28 yuan, leading to PE ratios of 13.7x, 10.2x, and 8.9x respectively [7]. Financial Summary - Revenue and Profitability: The company achieved a revenue of 17.54 billion yuan in 2023, a year-on-year increase of 16.6%. The net profit attributable to shareholders was 386 million yuan, up 8.3% year-on-year [24]. - Future Projections: Revenue is expected to grow to 19.64 billion yuan in 2024, 22.39 billion yuan in 2025, and 24.63 billion yuan in 2026, with net profits projected at 688 million yuan, 925 million yuan, and 1,056 million yuan respectively [23]. - Key Financial Ratios: The company’s ROE is projected to increase from 5.0% in 2023 to 10.3% in 2026, while the P/E ratio is expected to decrease from 24.4x in 2023 to 8.9x in 2026 [23]. Business Segments - Rail Transit: The rail transit segment saw a revenue of 18.75 billion yuan in 2023, with a gross margin of 32.64%. The company holds the leading market share in this sector [25]. - Wind Power: Wind power sales reached 6.70 billion yuan, reflecting a year-on-year growth of 24.87% with a gross margin of 12.37% [25]. - New Materials: The new materials segment faced a decline in revenue to 436 million yuan, down 26.56% year-on-year, but maintained a gross margin of 30.38% [25].