ORIENT CABLE (NBO)(603606) 国盛证券·2025-01-14 03:10Investment Rating - The report maintains a "Buy" rating for Dongfang Cable (603606.SH) [6] Core Views - Dongfang Cable is strategically investing in a deep-sea transmission equipment project in Beihai, Guangxi, with a total investment of approximately 2 billion yuan, which is expected to significantly enhance its performance in 2025 [1][2] - The company is well-positioned to capture a larger market share in the offshore wind power cable sector due to high barriers to entry and the rich wind energy resources in Guangxi [1][2] - The company has secured new orders worth approximately 7.3 billion yuan for 2024, indicating strong growth potential for 2025 [3] Summary by Sections Investment Overview - The company plans to invest 2 billion yuan in a deep-sea transmission equipment project, with 700 million yuan allocated for fixed assets, divided into three phases [1] - The project aims to enhance the company's production capacity and market share in the offshore wind cable market [1] Market Potential - The deep-sea wind power development is accelerating, with significant implications for energy security and industrial upgrading [2] - The total planned capacity for the deep-sea wind power projects in Guangxi is 13.4 GW, indicating substantial growth potential for the company [2] Financial Performance - The company expects a substantial increase in net profit, projecting 1.26 billion yuan for 2024 and 2.18 billion yuan for 2025, reflecting a year-on-year growth of 72.9% [3] - Revenue is projected to grow from 8.73 billion yuan in 2024 to 12.86 billion yuan in 2025, representing a growth rate of 47.3% [5] Profitability Metrics - The report forecasts a net profit margin increase, with net profit expected to reach 2.7 billion yuan by 2026 [5] - The company's price-to-earnings (P/E) ratio is projected to decrease from 29.9 in 2024 to 14.0 in 2026, indicating improved valuation [5]