Summary of Ningbo Orient Wires & Cables Conference Call Company Overview - **Company**: Ningbo Orient Wires & Cables Co Ltd (603606.SS) - **Industry**: China Utilities - **Market Cap**: Rmb45,527 million - **Current Stock Price**: Rmb66.20 (as of October 24, 2025) - **Price Target**: Rmb69.63, indicating a 5% upside potential Key Financial Highlights - **9M25 Net Profit**: Rmb914 million, down 1.9% YoY - **9M25 Revenue**: Rmb7.5 billion, up 11.9% YoY - **3Q25 Net Profit**: Rmb441 million, up 53.1% YoY and 129.6% QoQ - **Gross Profit Margin (GPM)**: - 3Q25: 22.6%, up 0.9 percentage points YoY and 6.3 percentage points QoQ - Estimated GPM for submarine and high-voltage cables: 34-35% vs. 25% in 1H25 - **Order Backlog**: Rmb19.6 billion as of October 23, 2025, including: - Rmb11.7 billion in submarine and high-voltage cables - Rmb3.9 billion in marine engineering - Rmb3.9 billion in medium- and low-voltage land cables Revenue Breakdown - **Submarine and High-Voltage Cables**: - Revenue: Rmb1,592 million in 3Q25, up 109.4% QoQ - Key projects contributing to revenue: Qingzhou 5 and 7, Fanshi 1 and 2 in Guangdong - **Marine Equipment and Engineering**: Revenue decreased to Rmb78 million, down 63.2% QoQ - **Medium/Low Voltage Land Cables**: Revenue: Rmb1,343 million, up 0.5% QoQ with ~10% GPM Strategic Insights - The significant increase in net profit for 3Q25 is attributed to accelerated revenue recognition from high-margin offshore projects in Guangdong - The company has achieved 86% of the full-year earnings forecast for FY25, indicating potential upside risk to the forecast Valuation and Risks - **Valuation Methodology**: Discounted cash flow analysis with a WACC of 7.4% - **Risks to Upside**: - Increased offshore wind power installations in China - Higher average selling prices (ASPs) for submarine cables - Improved gross profit margins for both submarine and land cables - **Risks to Downside**: - Decrease in offshore wind power installations - Decline in ASPs for submarine cables - Unexpected increases in raw material costs Analyst Ratings - **Stock Rating**: Overweight - **Industry View**: Attractive Conclusion Ningbo Orient Wires & Cables has demonstrated strong financial performance in 3Q25, driven by key offshore projects and a substantial order backlog. The company is well-positioned for future growth, although it faces potential risks related to market conditions and raw material costs. The current stock rating reflects a positive outlook for the company within the utilities sector in China.

Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Insights - The company reported a revenue of 3.066 billion yuan in Q3 2025, representing a year-on-year increase of 16.55% and a quarter-on-quarter increase of 34.16%. The net profit attributable to shareholders was 441 million yuan, up 53.12% year-on-year and 129.63% quarter-on-quarter [1]. - The company has a strong order backlog of approximately 19.551 billion yuan as of October 23, 2025, with significant contributions from high-voltage submarine cable orders [2]. - The company is actively enhancing its production capacity and has invested in projects to support offshore wind power development, aiming for a total capacity of over 3 million kilowatts by 2030 [3]. Financial Performance Summary - For the first three quarters of 2025, the company achieved a total revenue of approximately 7.498 billion yuan, a year-on-year increase of 11.93%. The net profit attributable to shareholders was about 914 million yuan, a decrease of 1.95% year-on-year [5]. - The projected revenues for 2025-2027 are 10.971 billion yuan, 13.974 billion yuan, and 15.157 billion yuan, respectively, with net profits expected to be 1.423 billion yuan, 2.331 billion yuan, and 2.544 billion yuan [4][7]. - The company's gross margin for Q3 2025 was approximately 22.60%, with a net margin of about 14.38% [1].

Core Viewpoint - Dongfang Cable's net profit attributable to shareholders for the first three quarters of 2025 is 910 million yuan, representing a year-on-year decrease of 1.9% [1] - In Q3, the net profit attributable to shareholders is 440 million yuan, showing a quarter-on-quarter increase of 53.1% and a year-on-year increase of 129.6% [1] Financial Performance - The net profit for Q1-3 2025 is reported at 910 million yuan, which is a slight decline compared to the previous year [1] - The Q3 net profit of 440 million yuan indicates significant growth, both sequentially and year-on-year [1] Project Developments - The delivery of projects such as Guangdong Qingzhou 57 and Fanshi 12 began in Q3, contributing to the revenue recognition from submarine cables [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a record high quarterly performance, with significant growth in revenue and net profit in Q3 2025, driven by increased delivery of 500kV submarine cables [3][7] - The company’s revenue for the first three quarters of 2025 reached 7.498 billion yuan, a year-on-year increase of 12%, while the net profit attributable to shareholders was 914 million yuan, a year-on-year decrease of 2% [6][7] - The company’s order backlog has increased significantly, with a year-on-year growth of 112%, indicating strong future revenue potential [7][10] Financial Performance - In Q3 2025, the company reported revenue of 3.066 billion yuan, a year-on-year increase of 17% and a quarter-on-quarter increase of 34% [6][7] - The net profit for Q3 2025 was 441 million yuan, marking a year-on-year increase of 53% and a quarter-on-quarter increase of 130% [6][7] - The gross margin and net margin for Q3 2025 were 22.6% and 14.4%, respectively, reflecting a quarter-on-quarter increase of 6.4 percentage points and 6.0 percentage points [7] Order Backlog and Market Outlook - As of October 23, 2025, the company’s order backlog stood at 19.6 billion yuan, with a significant portion attributed to submarine cables and high-voltage cables [7][10] - The company is entering a peak delivery season for 500kV submarine cables, with several projects already in the final stages of connection [7][10] - The domestic offshore wind policy is expected to catalyze further growth, with a projected annual installation target of over 15GW, representing a 67% increase compared to previous years [7][10] Earnings Forecast - The company is expected to achieve revenues of 11.4 billion yuan, 13.51 billion yuan, and 15.71 billion yuan for the years 2025, 2026, and 2027, respectively [9][10] - The net profit attributable to shareholders is projected to be 1.535 billion yuan, 2.087 billion yuan, and 2.630 billion yuan for the same years [9][10] - The price-to-earnings (P/E) ratios corresponding to the current stock price are estimated to be 29.67x, 21.82x, and 17.31x for 2025, 2026, and 2027, respectively [10][11]

Investment Rating - The report maintains a "Buy" rating for key companies in the wind energy sector, including Goldwind Technology, Yunda Co., and Mingyang Smart Energy, based on their competitive advantages and expected market share growth [9][12]. Core Insights - The report outlines China's strategic tasks in the energy sector during the 14th Five-Year Plan, emphasizing a green transition driven by dual carbon goals, including specific measures such as carbon emission control, industrial decarbonization, and the development of renewable energy [6][13]. - The wind energy sector is expected to see a significant increase in installed capacity, with a target of no less than 120GW of new installations annually during the 14th Five-Year Plan, including at least 15GW from offshore wind [7][5]. - Hydrogen energy has been recognized as a key future industry, with strong policy support anticipated to accelerate its industrialization and commercialization, positioning it as a new growth driver [13][15]. Wind Energy - The "Wind Energy Beijing Declaration 2.0" has revised the market's expectations for wind power installations, indicating a slowdown in the trend of larger wind turbines, with a focus on products that meet market demands for power trading [7][8]. - Goldwind's Q3 performance exceeded expectations, with a revenue increase of 25.4% year-on-year and a net profit growth of 170.6% [9]. - The competitive landscape in the wind turbine sector is expected to undergo a "value reshaping" as companies adapt to market conditions and enhance product offerings [7][8]. Hydrogen and Fuel Cells - Hydrogen energy has been elevated to a national strategic level, with policies expected to support its rapid development and integration into various sectors [13][15]. - The report highlights the acceleration of green hydrogen projects and the rising demand for fuel cell vehicles, indicating a significant market opportunity [14][15]. - The establishment of a complete commercial model for green hydrogen in shipping is seen as a breakthrough that could lead to broader applications in other industries [15][16]. Photovoltaics and Energy Storage - The introduction of new measures in Henan Province is expected to enhance the profitability of independent energy storage projects, confirming the report's previous assertions about the growing demand for large-scale energy storage [17][18]. - The export of photovoltaic components remains strong, with a notable increase in shipments to emerging markets, indicating sustained demand [19][20]. - The report suggests a bottom-up investment approach in the solar and storage sectors, focusing on leading companies and innovative technologies [20]. Lithium Batteries - The lithium battery sector is experiencing a surge in demand, with some negative electrode manufacturers raising prices due to increased production capacity utilization [21][24]. - A significant breakthrough in solid-state battery technology has been achieved by XINWANDA, with a new polymer solid-state battery reaching an energy density of 400Wh/kg [26][27]. - The report emphasizes the importance of strategic partnerships in the lithium battery supply chain, particularly for enhancing sustainability and competitive advantage [22].

Investment Rating - The report recommends investment in the electric power equipment industry, highlighting specific companies for potential investment opportunities [1][3]. Core Insights - Lithium battery material prices continue to rise, with domestic lithium hexafluorophosphate averaging 95,000 yuan/ton, up 20.25% month-on-month, and export prices at 104,000 yuan/ton, up 20.93% [1]. - The average winning bid price for lithium battery energy storage systems increased to 0.4771 yuan/Wh in September 2025, reflecting a 4.33% month-on-month rise [1]. - The report emphasizes the ongoing high demand in the wind power sector, with a target of adding no less than 120GW of new installed capacity annually during the 14th Five-Year Plan period [3]. - The Indian market shows strong demand for photovoltaic installations, with 29.5GW added in the first three quarters of 2025, a 70% year-on-year increase [3]. Summary by Sections Lithium Battery Materials - Domestic lithium hexafluorophosphate prices are at 95,000 yuan/ton, a 20.25% increase month-on-month, while export prices are at 104,000 yuan/ton, up 20.93% [1]. - Recommended companies in the lithium battery sector include Zhuhai Guanyu, Shangtai Technology, and XWANDA [1]. Energy Storage Systems - The average winning bid price for lithium battery energy storage systems reached 0.4771 yuan/Wh in September 2025, marking a 4.33% increase month-on-month [1]. - Recommended companies in the energy storage sector include Yiwei Lithium Energy, Sungrow Power, and CATL [1]. Wind Power - The "Wind Energy Beijing Declaration 2.0" sets a target of at least 120GW of new installed capacity annually during the 14th Five-Year Plan, with a cumulative target of 1,300GW by 2030 [3]. - Recommended companies in the wind power sector include Goldwind Technology and Daikin Heavy Industries [3]. Photovoltaic Market - India added 29.5GW of new photovoltaic capacity in the first three quarters of 2025, a 70% year-on-year increase [3]. - Recommended companies in the photovoltaic sector include Aiko Solar, LONGi Green Energy, and Mibet [3].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported a revenue of 7.5 billion RMB for the first three quarters of 2025, representing a year-on-year growth of 11.9%. The net profit attributable to shareholders was 914 million RMB, a decrease of 1.95% year-on-year. In Q3 alone, revenue reached 3.07 billion RMB, up 16.6% year-on-year and 34.2% quarter-on-quarter, with net profit of 441 million RMB, marking a 53.1% year-on-year increase and a 129.6% quarter-on-quarter increase [2]. - The delivery of submarine cables accelerated in Q3, establishing a performance inflection point. Revenue from submarine and high-voltage cables for the first three quarters was 3.55 billion RMB, up 35.8% year-on-year, with Q3 revenue at 1.59 billion RMB, a 109.2% quarter-on-quarter increase. The company’s contract liabilities (advance payments) reached 1.57 billion RMB, an increase of 83.1% year-on-year, while inventory grew to 3.63 billion RMB, up 105% year-on-year [3]. - As of October 23, 2025, the company had a backlog of orders amounting to approximately 19.6 billion RMB, with a slight structural improvement. The backlog for submarine and high-voltage cables was about 11.7 billion RMB, up 6.7% quarter-on-quarter [4]. Summary by Sections Performance Review - For the first three quarters of 2025, the company achieved a revenue of 7.5 billion RMB, with a net profit of 914 million RMB. Q3 revenue was 3.07 billion RMB, with a net profit of 441 million RMB [2]. Operational Analysis - The company’s submarine cable delivery accelerated, with significant revenue growth in Q3. The backlog of orders remains high, indicating potential for future revenue growth [3][4]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025-2027 is 1.54 billion RMB, 2.05 billion RMB, and 2.55 billion RMB, respectively, with corresponding P/E ratios of 30, 22, and 18 [5].

Core Viewpoint - The company reported significant growth in revenue and net profit for the third quarter of 2025, indicating strong operational performance and a positive outlook for future growth [6][18]. Financial Performance - The company achieved operating revenue of 3.066 billion yuan and a net profit attributable to shareholders of approximately 441 million yuan, representing a year-on-year increase of 53.12% [6]. - The net profit after deducting non-recurring gains and losses was about 440 million yuan, showing a year-on-year growth of 71.73% [6]. - For the first nine months of 2025, the cumulative operating revenue reached approximately 7.438 billion yuan, an increase of 11.20% year-on-year [6]. - The cumulative net profit attributable to shareholders was about 914 million yuan, a slight decrease of 1.95% year-on-year, while the net profit after deducting non-recurring gains and losses increased by 6.45% to 902 million yuan [6]. Order Backlog - As of October 23, 2025, the company had an order backlog of approximately 19.551 billion yuan, with significant contributions from various segments: 3.886 billion yuan from power engineering and equipment cables, 11.737 billion yuan from submarine cables and high-voltage cables, and 3.928 billion yuan from marine equipment and engineering operations [7]. Capital Increase - The company approved a capital increase of 300 million yuan for its wholly-owned subsidiary, Guangdong Oriental Submarine Cable Co., Ltd., raising its registered capital from 200 million yuan to 500 million yuan [18][19]. - This capital increase aims to support the subsidiary's business development and expansion in key markets, aligning with the company's strategic goals [19][22]. Investor Communication - The company plans to hold a performance briefing on October 30, 2025, to discuss the third-quarter results and address investor inquiries [26][28]. - The briefing will be conducted via video and online interaction, allowing investors to engage directly with company executives [28][29].

Core Viewpoint - Dongfang Cable (603606.SH) reported its Q3 2025 results, showing a mixed performance with revenue growth but a decline in net profit [1] Financial Performance - The company achieved a revenue of 7.498 billion yuan for the first three quarters, representing a year-on-year increase of 11.93% [1] - The net profit attributable to shareholders was 914 million yuan, reflecting a year-on-year decrease of 1.95% [1] - The net profit after deducting non-recurring gains and losses was 902 million yuan, which indicates a year-on-year growth of 6.45% [1] - Basic earnings per share stood at 1.33 yuan [1]

Group 1 - The core point of the article is that Oriental Cable announced a board meeting to discuss a capital increase for its wholly-owned subsidiary, reflecting ongoing corporate governance and strategic planning [1] - For the fiscal year 2024, Oriental Cable's revenue composition is heavily weighted towards the electrical machinery and equipment manufacturing sector, which accounts for 99.89% of total revenue, indicating a strong focus on this core business area [1] - As of the report, Oriental Cable has a market capitalization of 45.5 billion yuan, highlighting its significant presence in the market [1] Group 2 - The article also mentions the broader context of the Chinese innovative drug market, noting that overseas licensing has generated $80 billion this year, which reflects the growing interest and investment in the biopharmaceutical sector [1] - A conversation with a partner from Chuangdong Investment highlights the contrast between the hot secondary market for biomedicine and the cooling fundraising environment in the primary market, indicating potential challenges for new investments in this sector [1]