ORIENT CABLE (NBO)(603606) 华福证券·2024-11-01 03:13Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 20% relative to the market benchmark within the next six months [12]. Core Insights - The company reported a revenue of 6.699 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 25.2%, with a net profit attributable to shareholders of 930 million yuan, up 13.4% year-on-year [1]. - The company is positioned to benefit significantly from the upcoming surge in domestic offshore wind projects, with a strong order backlog of approximately 9.236 billion yuan as of October 18, 2024 [3][4]. - The company has established a wholly-owned subsidiary in Fuzhou, Fujian, to enhance its presence in the offshore wind market [3]. Financial Performance - In Q3 2024, the company achieved a revenue of 2.63 billion yuan, a year-on-year increase of 58.4%, and a net profit of 290 million yuan, up 40.5% year-on-year [1][2]. - The gross margin for Q3 2024 was reported at 21.7%, an increase of 0.9 percentage points compared to Q3 2023, primarily due to a higher proportion of high-margin offshore cable business [2]. - The company’s operating expenses ratio decreased to 6.8% in Q3 2024, down 1.3 percentage points from Q3 2023, reflecting effective cost control measures [2]. Earnings Forecast - The adjusted net profit forecasts for 2024, 2025, and 2026 are 1.25 billion yuan, 2.17 billion yuan, and 2.71 billion yuan, respectively, with corresponding price-to-earnings ratios of 31.1, 17.9, and 14.3 [4][5]. - The company is expected to experience a growth rate of 22% in revenue for 2024, followed by 39% in 2025 and 19% in 2026 [5].