ORIENT CABLE (NBO)(603606) 东海证券·2024-12-27 11:08Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [20][129]. Core Insights - The company is positioned to benefit from the rapid growth of offshore wind power, with significant market opportunities both domestically and internationally. The report highlights the company's strong order backlog and technological advantages in deep-sea and floating wind projects [20][35][106]. - The offshore wind market is expected to see accelerated growth, particularly in Europe and China, with the company already making inroads into these markets [21][75][91]. Summary by Sections Company Performance - The company reported steady growth in revenue and net profit, with a cumulative revenue of approximately 6.689 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 25.18% [31][24]. - The net profit attributable to shareholders for the same period was approximately 932 million yuan, up 13.41% year-on-year [31][24]. Market Position - The company holds a leading position in the domestic offshore cable market, with a significant share in projects across Zhejiang and Guangdong provinces. It has also successfully expanded into European markets, securing contracts worth nearly 3 billion yuan since December 2020 [25][80]. - As of October 18, 2024, the company has an order backlog of approximately 9.236 billion yuan, with substantial contributions from both the submarine cable and land cable systems [80][25]. Industry Outlook - The global offshore wind market is projected to grow significantly, with an expected compound annual growth rate of 28% over the next five years. China and Europe are anticipated to be the primary contributors to this growth [75][91]. - The report emphasizes the importance of government policies and investments in driving the offshore wind sector, particularly in the UK, which is leading the European market [77][94]. Financial Projections - The company is expected to achieve revenues of 8.858 billion yuan, 11.839 billion yuan, and 13.649 billion yuan for the years 2024, 2025, and 2026, respectively. Net profits are projected to be 1.269 billion yuan, 1.922 billion yuan, and 2.376 billion yuan for the same years [26][129]. - The earnings per share (EPS) are forecasted to be 1.85 yuan, 2.79 yuan, and 3.45 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 28.64, 18.91, and 15.30 [26][129].