ORIENT CABLE (NBO)(SH:603606) Huaxin Securities·2025-03-30 08:00Investment Rating - The report maintains a "Buy" investment rating for the company [1][9]. Core Insights - The company has sufficient orders on hand, benefiting from a resonance of domestic and international demand [6]. - The company achieved a revenue of 9.093 billion yuan in 2024, representing a year-on-year growth of 24.38%, with a net profit of 1.008 billion yuan, up 0.81% year-on-year [5]. - The company is expected to see significant revenue growth in the coming years, with projected revenues of 12.838 billion yuan, 15.092 billion yuan, and 17.751 billion yuan for 2025, 2026, and 2027 respectively [11]. Summary by Sections Performance Overview - In 2024, the company reported a revenue of 9.093 billion yuan, a 24.38% increase year-on-year, and a net profit of 1.008 billion yuan, a 0.81% increase year-on-year [5]. - The gross margin was 18.83%, down 6.38 percentage points year-on-year, while the net margin was 11.09%, down 2.59 percentage points year-on-year [5]. Demand and Orders - The company has a strong order backlog, with total orders amounting to 17.975 billion yuan as of Q1 2025, including 8.827 billion yuan in submarine cables, 6.353 billion yuan in land cables, and 2.795 billion yuan in marine engineering [6]. - The European market is expected to see a significant increase in demand for offshore cables, with projected growth of 1.4 to 14.3 times by 2030 [6]. International Expansion - The company achieved a remarkable 480.54% year-on-year growth in export revenue, reaching 733 million yuan in 2024 [7]. - The establishment of subsidiaries in Europe, including a wholly-owned subsidiary in Rotterdam and another in the UK, supports the company's international market expansion [7]. Profit Forecast - The company is projected to achieve earnings per share (EPS) of 2.57 yuan, 3.16 yuan, and 3.87 yuan for the years 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 19.4, 15.8, and 12.9 [9][11].