【行业研究报告】亨通光电-Initiation:Driven by a trio of boosters

HengtongOptic-Electricistheworld'sleadingsolutionproviderintelecom
andenergyinterconnection.TheCompanyisawell-establishedleaderin
domesticopticalfibersandcables.Withthecontinuoussectorboom,
HengtongOptic-Electricislikelytocontinuetobenefitfromthe
sector-wideshipmentramp-upandpricehikesinChina.Meanwhile,we
seesustainedandrobustdemandfromChina’soffshorewindpower
constructionamidthetrendofcarbonneutrality.Asoneofthethreemajor
domesticsubmarinecablemanufacturers,HengtongOptic-Electricboasts
vastgrowthpotentialfromitsoffshorebusinessgoingforward.In
addition,withthepromotionofChina’sultra-highvoltage(UHV)andsmart
gridprojects,weexpecttheCompany'sgird-relatedsegmentstofurther
expand.WeforecasttheCompany’s2022E-24Eattributablenetprofit
(ANP)tobeRmb2.175bn/2.626bn/3.137bnandassign18x2022EPEto
arriveatatargetpriceofRmb17.Weinitiatecoveragewitha“BUY”rating.
▍Aworld'sleadingsolutionproviderintelecom/energyinterconnection.
HengtongOptic-Electricisaleaderinopticalfibersandcables,aswellasin
HengtongOptic-Electricisaleaderinopticalfibersandcables,aswellasin
othersectorssuchassmartpowergrid,offshoretelecom/energytransmission,
etc.inChina.TheCompany'sproductscoverawiderangeoftelecom,power,
energy,offshore,aerospaceandenergyinterconnectionsystemengineering
inover100countriesacrosstheworld.In2021,theCompanyposted
operatingrevenueofRmb41.27bn(+27.4%YoY),andANPofRmb1.44bn
(+35.3%YoY).
▍Opticaltelecom:Amongthefirsttobenefitfromtherecoveryinoptical
fibersandcables.
Atpresent,weseeacontinuousriseinChina’sopticalfibersandcables.On
theonehand,accordingtothegeneralresultsofthe2021-2022common
opticalcablepurchasesurvey,theaveragesellingprice(ASP)increasedby
morethan50%,withthepurchasevolumeupmorethan20%.Ontheflip
hand,withthecontinuouslaunchesofnewapplicationsandthesupportive
doublegigabitpolicies,China'sopticalnetworkstillboastslargegrowth
potential,alongsidehugedemandforfurtherupgrading,whichindicatesvast
untappedpotentialgoingforward.HengtongOptic-Electric,astheworld’s
leadingopticalfiberandcablemaker,hasthecapabilityfortheintegrated
productionofopticalrods,fibersandcables,andboastssignificantedgesin
productionscale,capacityandtechnology,etc.Meanwhile,ithasbeen
activelystrengtheningitsoverseasexposure.Withtheon-goingreboundin
opticalfibersandcables,weexpectmoreupsidesurprisesfromtheCompany.
▍Offshorebusiness:Abeneficiaryofrisingoffshorecablesandhigh
entrybarriersofsubmarinecables.
Offshorewindpowerhasbecomeincreasinglyimportantwithrisingrolloutsof
supportivepolicesacrosstheworldamidthetrendofcarbonneutrality.
China'snewinstallationswererankedthefirstintheworldin2021.Wesee
robustdemandforoffshorecables—thekeycomponentsforoffshorewind
powerinstallations—broughtbythemarketexpansion.Hengtong
Optic-Electrichassuccessivelywonthebiddingoflargekeyoffshorewind
powerprojectsathomeandabroadsince2020,reflectingitsstrong