ORIENT CABLE (NBO)(603606) 光大证券·2024-11-24 03:43Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on ongoing domestic offshore wind projects and the company's proactive expansion into international markets [3][6]. Core Insights - The company successfully won contracts for the Qingzhou 5 and 7 submarine cable projects, with a total bid amount of approximately 4 billion RMB, which includes several significant projects with specific amounts detailed [1]. - Recent progress in key offshore wind projects in Guangdong and Jiangsu has accelerated, with previous regulatory hurdles being lifted, leading to new tenders and project advancements [2]. - The company plans to establish overseas subsidiaries in Hong Kong and the UK, with an investment of about 0.69 billion RMB, aimed at enhancing its international market presence and brand recognition [3]. Financial Summary - Revenue is projected to grow from 7,009 million RMB in 2022 to 12,132 million RMB in 2026, with a compound annual growth rate (CAGR) of approximately 12.01% [4]. - Net profit is expected to increase from 842 million RMB in 2022 to 2,221 million RMB in 2026, reflecting a CAGR of about 19.31% [4]. - Earnings per share (EPS) is forecasted to rise from 1.22 RMB in 2022 to 3.23 RMB in 2026, indicating strong profitability growth [4]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 45 in 2022 to 17 in 2026, suggesting improved valuation as earnings grow [4]. Market Outlook - The report highlights a favorable outlook for the offshore wind sector in China, with many nearshore projects expected to commence construction and grid connection by 2025 and 2026 [2]. - The potential for deep-sea offshore wind development is emphasized as a significant growth area during the 14th Five-Year Plan period, with ongoing pilot projects and policy developments to be closely monitored [2].