ORIENT CABLE (NBO)(603606) 华源证券·2024-12-02 08:03Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [2][5]. Core Views - The company is expected to benefit from the recovery of the offshore wind market and the increasing value of submarine cables due to greater offshore distances. The projected net profits for 2024-2026 are 1.27 billion, 1.76 billion, and 2.19 billion yuan, respectively, with year-on-year growth rates of 26.6%, 39.2%, and 24.2% [2][5]. - The company has a strong order backlog, with total orders amounting to 9.236 billion yuan, which supports future performance. The company has recently won several significant contracts in the offshore wind sector, indicating its competitive position [6][7]. Summary by Sections Financial Forecasts - The company’s revenue is projected to grow from 7.31 billion yuan in 2023 to 11.88 billion yuan in 2026, with corresponding growth rates of 4.3%, 22.89%, 14.00%, and 16.01% [5][10]. - The net profit is expected to increase from 1 billion yuan in 2023 to 2.188 billion yuan in 2026, with growth rates of 18.72%, 26.56%, 39.20%, and 24.20% [5][10]. - The earnings per share (EPS) is forecasted to rise from 1.45 yuan in 2023 to 3.18 yuan in 2026 [5][10]. Market Performance - The company reported a revenue of 6.699 billion yuan for the first three quarters of 2024, reflecting a year-on-year increase of 25.22%. The net profit for the same period was 932 million yuan, up 13.41% year-on-year [6][7]. - The company’s gross margin for the first three quarters was 22.17%, a decrease of 4.06 percentage points compared to the previous year, attributed to the rapid growth in land cable revenue [7]. Order Backlog and Project Wins - As of October 18, the company had an order backlog of 9.236 billion yuan, including 2.949 billion yuan for submarine cables and 1.397 billion yuan for marine engineering [6][7]. - Recent project wins include significant contracts for ±500kV submarine cables, showcasing the company's technical capabilities and market leadership [7].