ZTT(SH:600522)2025-07-07 16:32Summary of Zhongtian Technology Conference Call Industry and Company Overview - The conference call pertains to Zhongtian Technology, a company involved in the manufacturing of submarine cables and communication networks, focusing on the energy interconnection and offshore wind power sectors. Key Points and Arguments 1. Order Acquisition and Revenue Expectations Zhongtian Technology has secured approximately 2 billion yuan in 500 kV submarine cable orders in the first half of the year, benefiting from demand in Shantou and Wenzhou. The proportion of 500 kV orders is expected to increase from 20% to 30%-50% [2][5] 2. International Market Participation The company is actively participating in energy interconnection projects in Europe and Southeast Asia, with expectations for breakthroughs in international high-voltage projects within the next one to two years [2][5] 3. Domestic Market Performance In Jiangsu, the scale of submarine cable orders is about 2 billion yuan, with revenue recognition expected mainly in Q2 and Q3. The company anticipates three new project tenders in the second half of the year, exceeding previous expectations [2][8] 4. Profit Margins The gross margin for 500 kV products is higher than that of 220 kV and 66 kV products. The overall gross margin is expected to remain stable this year, with improvements due to an increased proportion of high-margin products [2][6] 5. Focus on Overseas Markets Key overseas markets include Europe, Southeast Asia, and the Middle East, with significant potential in offshore wind power and oil and gas projects. The company expects a notable increase in overseas orders in the coming periods [2][7] 6. Communication Network Sector Zhongtian Technology won the top share in the China Mobile 25~206 month plan. Although there has not been a clear turning point in demand, the long-term growth trend for data transmission remains solid due to increasing internet applications and data centers [2][9] 7. Impact of Internet Companies on Data Centers Some internet companies are building their own data centers, affecting operators' capital expenditures. However, long-term demand for data transmission is expected to recover as application needs increase [2][10] 8. International Strategy and Revenue Goals Since 2017, Zhongtian Technology has aimed for 35%-40% of its revenue to come from international markets, with 25% of its communication segment revenue currently derived from overseas [2][11] 9. Manufacturing Industry Measures The company benefits from measures in the manufacturing sector aimed at maintaining reasonable profit margins and quality, which supports sustainable market development [2][12] 10. Corporate Governance Changes The company has undergone a board restructuring, with a new chairman focusing on product development and market expansion, while maintaining direct management of various segments [2][13] 11. Investment Income Outlook Last year's impairments were mainly in the new energy materials sector, but this year's investment income is not expected to significantly impact financial performance [2][14] 12. Order Backlog and Future Projections As of April 2025, Zhongtian Technology has an order backlog of approximately 13 billion yuan in the marine sector, with a production capacity target of 9-10 billion yuan for submarine cables [2][14] 13. Domestic and International Market Trends By 2025, the domestic offshore wind industry is expected to reach a grid-connected capacity of 60 GW, with significant project approvals anticipated in various provinces [2][15] 14. Fiber Optic Demand Demand for multimode fibers has increased since 2024, with the company adjusting its production capacity accordingly. Collaborations on hollow fiber technology are ongoing, focusing on industrial scale and stability [2][16]