ZTT(600522) 天风证券·2024-09-01 10:31Investment Rating - The investment rating for the company is "Buy" with a target price maintained at 12.96 CNY [1] Core Views - The company reported a significant increase in contract liabilities, which doubled year-on-year, indicating strong future revenue potential and a robust order backlog [3][5] - Despite a decline in net profit, the company is expected to return to a growth trajectory due to one-time factors affecting profitability [4][6] - The company is well-positioned to benefit from the growing demand in offshore wind projects and has a strong order pipeline in the energy network sector [5][6] Financial Performance Summary - For the first half of 2024, the company achieved revenue of 21.416 billion CNY, a year-on-year increase of 6.32%, while net profit attributable to shareholders was 1.460 billion CNY, down 25.31% [2] - In Q2 2024, revenue reached 13.174 billion CNY, reflecting an 11.00% year-on-year growth and a 59.83% quarter-on-quarter increase [3] - The company's contract liabilities increased from approximately 0.921 billion CNY in the same period last year to about 2.227 billion CNY this year, indicating strong future revenue growth potential [3] Business Outlook - The company has a strong order backlog of approximately 28.2 billion CNY in the energy network sector, with significant contributions from offshore wind projects [5] - The offshore wind power segment is expected to see accelerated revenue growth due to favorable market conditions and ongoing projects in Guangdong and Jiangsu provinces [6] - The company's renewable energy business is anticipated to benefit from declining raw material prices and the ongoing dual carbon strategy, positioning it for high growth [6] Financial Projections - The company adjusted its net profit forecasts for 2024-2026 to 3.6 billion CNY, 5.0 billion CNY, and 6.3 billion CNY respectively, maintaining a "Buy" rating based on a valuation of 12x, 9x, and 7x earnings [6][9]