ORIENT CABLE (NBO)(SH:603606) Xin Lang Cai Jing·2025-10-27 12:34Core Viewpoint - The company reported a mixed financial performance for Q3 2025, with revenue growth but a slight decline in net profit year-on-year, indicating a strong operational performance despite challenges in profitability [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of approximately 7.498 billion yuan, a year-on-year increase of 11.93%, while the net profit attributable to shareholders was about 914 million yuan, a decline of 1.95% [1]. - In Q3 2025, the company recorded revenue of 3.066 billion yuan, representing a year-on-year growth of 16.55% and a quarter-on-quarter increase of 34.16% [1]. - The gross margin for Q3 2025 was approximately 22.60%, up 6.35 percentage points quarter-on-quarter and 0.86 percentage points year-on-year, while the net margin was about 14.38%, up 5.98 percentage points quarter-on-quarter and 3.43 percentage points year-on-year [1]. Business Segmentation - In the first three quarters of 2025, the company generated revenue of 3.536 billion yuan from power engineering and equipment cables, accounting for approximately 47.54% of total revenue [1]. - Revenue from submarine cables and high-voltage cables was 3.549 billion yuan, representing about 47.71% of total revenue, while marine equipment and engineering operations generated 353 million yuan, accounting for approximately 4.75% [1]. Order Backlog and Growth - As of October 23, 2025, the company had an order backlog of approximately 19.551 billion yuan, with significant contributions from power engineering and equipment cables, submarine cables and high-voltage cables, and marine equipment and engineering operations [2]. - Recent high-voltage submarine cable orders include projects for Zhejiang Energy and China Energy Construction, indicating a strong demand for high-voltage solutions [2]. Capacity Expansion - The company is enhancing its capacity by participating in the Zhejiang Offshore Wind Port project, aimed at supporting deep-sea wind power construction, with plans to achieve a total installation capacity of over 3 million kilowatts by 2030 [3]. - Ongoing projects include the construction of a central research institute and the second phase of the future factory, which will improve production capacity and support the establishment of northern and southern industrial bases [3]. Investment Outlook - Revenue projections for 2025-2027 are estimated at 10.97 billion, 13.97 billion, and 15.16 billion yuan, with net profits expected to be 1.42 billion, 2.33 billion, and 2.54 billion yuan respectively, indicating a favorable growth trajectory [3].