Incidents:
The company published an article on its official account, and the World Economic Forum (World Economic Forum) released the 2023 white paper “Global Lighthouse Network: Accelerating Large-scale Application of Artificial Intelligence”. Hengtong was successfully selected as the “Lighthouse Factory” and became the first company in the industry to receive this honor.
The company issued an announcement. The holding subsidiaries Jiangsu Hengtong High Voltage Submarine Cable Co., Ltd. and Hengtong Offshore Engineering Co., Ltd. have successively won bids for marine energy projects. The total bid amount was 1,186 billion yuan (tax included).
With a comprehensive domestic and international layout, the continuous addition of new orders empowers the marine business, which is expected to increase its ability to obtain orders, continue to break through in domestic orders, and rich experience in overseas projects. As of the 2013 semi-annual report, the company has about 17 billion yuan in on-hand orders in energy interconnection fields such as submarine cables, marine engineering, and land cable products. Recently, about 1,186 billion yuan was added to the bid for the Hainan, Shandong and Guangdong projects, accounting for 2.55% of the company's audited revenue in 2022. It is expected to have a positive impact on the company's future business performance. Continued bid wins reflect the company's comprehensive technical strength in the marine energy field.
Overseas division, the company established overseas markets earlier, has many case experiences, and continues to grow in international popularity. With the “Belt and Road” approach, the business landscape continues to expand, successively merging and acquiring well-known local companies such as PT Voksel in Indonesia, Aberdare in South Africa, Cablescom in Spain, and Alcobre in Portugal; it has established 12 overseas industrial bases in Spain, Portugal, Germany and other places to undertake more than 100 engineering projects; the business covers more than 150 countries and regions, including almost every country in Southeast Asia, and has successful project experience in many countries, and can provide high-quality power transmission product services, high-quality construction and integrated operation and maintenance solutions. A leading manufacturer in the field of going overseas, it is worth looking forward to continued breakthroughs in overseas projects.
The ocean wind industry is clearly improving. The recovery has opened up room for growth and imagination. Deep sea exploration continues, and the ocean wind industry may face an inflection point of recovery. There was a lot of catalysis in the first half of '24. Guangdong and Jiangsu provinces continued to catalyze, with six projects in Qingzhou, Guangdong successfully commencing, and the results of the 7GW offshore wind power project being announced; the Jiangsu Three Gorges Dafeng 800MW offshore wind power project won the bid. Guoxin Dafeng's 850MW project has also made progress. The ocean wind industry is clearly improving, and Hengtong Optoelectronics has benefited deeply as a local manufacturer of Jiangsu Haifeng.
As offshore wind power development begins to explore offshore and deep-sea regions, the company invested in the construction of a next-generation deep-sea large-scale fan installation vessel, which is expected to be able to carry out offshore wind turbine hoisting and fan foundation construction work at a depth of less than 70m. The installed wind turbines will cover up to 20MW to meet the high-capacity and deep-sea construction needs of offshore wind power at home and abroad.
It won the Lighthouse Factory Award, and optical communication continued to innovate and increase, leading the way to the “Lighthouse Factory Award”, the first in the industry. The World Economic Forum (World Economic Forum) released the 2023 “Global Lighthouse Network: Accelerating Large-scale Application of Artificial Intelligence” white paper. Hengtong was successfully selected as the “Lighthouse Factory” and became the first company in the industry to receive this honor. “Lighthouse Factory” represents the highest level of intelligent manufacturing in the world. Up to now, the number of “lighthouse factories” in the world is 153, including 62 “lighthouse factories” in China.
At the same time, with the “5G+ Industrial Internet” technology, Hengtong Optoelectronics became the first domestic enterprise in the field of optical communications to reach the four-level assessment of intelligent manufacturing maturity. Its “5G+IPv6 full link” optical cable production workshop uses artificial intelligence, cloud computing and other technologies to open up the entire production value chain, including R&D, technology, and supply chain. It relies on intelligent robots to reduce energy consumption by 11%, improve quality by 10%, increase logistics turnover efficiency by 20%, and double production capacity, leading the industry.
Continuously conquer key core communication technologies, significantly reducing costs and increasing efficiency. Over the past ten years, it has successively overcome the development problems of optical rods, helium-free low-energy drawing, and multi-core optical fiber production problems, maintaining production efficiency while reducing energy consumption and costs, and speeding up the domestic substitution process. In addition, Hengtong's intelligent fiber optic rod manufacturing plant deployed and implemented 27 advanced use cases, and won the title of the first “lighthouse factory” in the global optical communications industry.
Profit forecast and investment return: We expect the company's net profit to be 22/28/35 billion yuan for 23-25, corresponding to the 23-25 PE valuation of 14/11/9 times, respectively, to maintain a “buy” rating.
Risk warning: the risk of increased competition in the industry, the risk that the pace of project progress falls short of expectations, and the risk that the repurchase plan cannot be successfully implemented