ZTT(SH:600522) Guoxin Securities·2024-04-28 07:30Investment Rating - The investment rating for Zhongtian Technology (600522.SH) is "Buy" [5][3]. Core Views - The company's net profit faced pressure in Q1 2024, declining by 17% year-on-year, primarily due to delays in offshore wind project deliveries and the impact of fair value changes from holding shares in Guangxun Technology in the same period last year [1][3]. - The company reported a revenue of 450.7 billion yuan in 2023, an increase of 11.9% year-on-year, while the net profit attributable to shareholders was 31.2 billion yuan, down 3.0% year-on-year [1]. - The energy network segment has a robust order backlog of approximately 26 billion yuan as of March 31, 2024, with significant contributions from offshore wind and grid construction projects [1][3]. - The second phase of the employee stock ownership plan reflects the company's confidence in growth, with a target revenue growth rate of no less than 10%/20%/30% for 2024-2026 [1][3]. - The company plans to increase its dividend payout ratio, proposing a mid-year dividend not exceeding 40% of the current net profit [1]. Summary by Relevant Sections Financial Performance - In Q1 2024, Zhongtian Technology achieved a revenue of 82.4 billion yuan, a slight decrease of 0.4% year-on-year, and a net profit of 6.4 billion yuan, down 17.2% year-on-year [1]. - For 2024-2026, the projected net profits are 40 billion yuan, 47 billion yuan, and 53 billion yuan, respectively, with corresponding PE ratios of 11, 9, and 8 times [3][4]. Business Segments - The marine business saw a significant revenue decline of 48.9% in 2023 due to domestic installation delays, while the grid construction business benefited from domestic ultra-high voltage projects, growing by 15.0% [1]. - The renewable energy segment experienced a remarkable growth of 119% year-on-year in 2023, indicating strong demand in this area [1]. Order Backlog and Market Opportunities - As of March 31, 2024, the company has an order backlog of approximately 26 billion yuan, with 11.5 billion yuan from the marine segment, 12.5 billion yuan from grid construction, and 2 billion yuan from renewable energy [1]. - Recent project developments in domestic offshore wind and successful bids for European projects signal potential growth opportunities for the company [1].