ZTT(600522) 华泰证券·2025-04-25 12:26Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 18.42 RMB per share [6][4]. Core Views - The company is expected to achieve steady growth in performance, driven by the recovery of the marine cable sector and ongoing advancements in the power and communication segments [1][2]. - The first quarter of 2025 showed a significant revenue recovery, with a year-on-year increase of 18.37%, although the net profit was slightly below expectations due to a decline in non-recurring gains [1][3]. Revenue and Profitability - For 2024, the company is projected to generate revenue of 48.055 billion RMB, reflecting a year-on-year growth of 6.63%, while the net profit is expected to be 2.838 billion RMB, down 8.94% year-on-year [1][10]. - The revenue breakdown by segment for 2024 is as follows: Power 19.785 billion RMB (up 18.18%), Optical Communication 8.094 billion RMB (down 11.19%), New Energy 7.003 billion RMB (down 2.85%), and Marine 3.644 billion RMB (down 2.59%) [2]. Orders and Projects - As of April 23, 2025, the company has a backlog of orders in the energy network sector amounting to approximately 31.2 billion RMB, with significant contributions from the marine segment (13.4 billion RMB) and grid construction (14 billion RMB) [2]. Profitability Metrics - The comprehensive gross margin for 2024 is projected to be 14.39%, a decrease of 1.83 percentage points year-on-year, while the net profit margin is expected to be 5.91%, down 1.01 percentage points [3]. - The first quarter of 2025 showed a gross margin of 14.60% and a net profit margin of 6.43%, indicating a decline compared to the previous year [3]. Earnings Forecast and Valuation - The forecasted net profits for 2025, 2026, and 2027 are 4.056 billion RMB, 4.884 billion RMB, and 5.750 billion RMB, respectively, with adjustments reflecting a slight decrease in expectations [4][10]. - The company is assigned a PE ratio of 15.5x for 2025, leading to a target price of 18.42 RMB per share [4].