ZTT(SH:600522) Tianfeng Securities·2024-05-06 01:33Investment Rating - The investment rating for the company is "Buy" with a 6-month outlook maintained [1] Core Views - The company experienced profit pressure in Q1 2024 due to fair value changes, but has a strong order backlog that is expected to drive rapid growth in the future [1][2] - The company reported a revenue of 45.065 billion yuan in 2023, a year-on-year increase of 11.91%, while the net profit attributable to the parent company was 3.117 billion yuan, a decrease of 3.03% [2] - In Q1 2024, the company achieved a revenue of 8.242 billion yuan, a slight decline of 0.4% year-on-year, and a net profit of 636 million yuan, down 17.20% year-on-year [2] Business Performance Summary - The marine business faced significant pressure in 2023, with revenue declining by 48.92%, primarily due to weak offshore wind installations in the first half of the year [3] - The power business saw a revenue increase of 36.37% year-on-year, benefiting from accelerated grid investments and ultra-high voltage construction [3] - The renewable energy sector experienced over 100% year-on-year revenue growth, indicating strong demand [3] - As of March 31, 2024, the company had a backlog of orders worth approximately 26 billion yuan in the energy network sector, with marine orders around 11.5 billion yuan, grid construction orders about 12.5 billion yuan, and renewable energy orders approximately 2 billion yuan [3] Future Outlook - The offshore wind industry is expected to recover in 2024, with several catalysts in the first half of the year, particularly in Guangdong and Jiangsu provinces [4] - The company is well-positioned to benefit from this recovery as a local player in Jiangsu [4] - The company has a robust order pipeline across various business segments, including offshore wind, renewable energy, and optical communication, which are expected to drive significant growth [5] - The company plans to increase its dividend payout, with a proposed mid-year dividend not exceeding 40% of the net profit attributable to shareholders [6] Financial Projections - The company's net profit for 2024 and 2025 has been adjusted to 3.8 billion yuan and 5 billion yuan, respectively, with a projected net profit of 6.1 billion yuan for 2026 [6] - The corresponding P/E ratios for 2024-2026 are projected to be 12, 9, and 8 times, respectively [6]