ZTT(600522) 华泰证券·2025-04-25 10:55Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 18.42 per share [7][4]. Core Views - The company is expected to achieve stable growth in performance, driven by the recovery of its marine cable segment and ongoing developments in its power and communication sectors [1][2]. - The first quarter of 2025 showed a significant revenue recovery, with a year-on-year increase of 18.37%, although net profit slightly declined by 1.33% due to a drop in non-recurring gains [1]. - The marine segment has a strong order backlog, with approximately RMB 312 billion in orders, including RMB 134 billion from marine projects [2]. Revenue and Profitability - For 2024, the company is projected to generate revenue of RMB 48.055 billion, a year-on-year increase of 6.63%, with a net profit of RMB 2.838 billion, reflecting a decline of 8.94% [6]. - The company's gross margin for 2024 is expected to be 14.39%, down 1.83 percentage points year-on-year, while the net profit margin is projected at 5.91%, down 1.01 percentage points [3]. Segment Performance - The revenue breakdown for 2024 shows the power segment achieving RMB 197.85 billion (up 18.18%), while the marine segment is expected to decline by 2.59% to RMB 36.44 billion [2]. - The company has secured significant contracts, including a major project for 500kV DC marine cables worth RMB 24.99 billion [2]. Financial Forecasts - The forecast for net profit from 2025 to 2027 is RMB 4.056 billion, RMB 4.884 billion, and RMB 5.750 billion, respectively, indicating a recovery in profitability [4][6]. - The estimated PE ratio for 2025 is set at 15.5x, reflecting an adjustment from previous estimates [4].