ORIENT CABLE (NBO)(SH:603606) Minsheng Securities·2025-03-30 08:54Investment Rating - The report maintains a "Recommended" rating for the company, considering the expected recovery in industry demand, the scale and structure of the company's orders, and its leading profitability in the industry [3][5]. Core Viewpoints - The company achieved a revenue of 9.093 billion yuan in 2024, representing a year-on-year growth of 24.38%. The net profit attributable to shareholders was 1.008 billion yuan, with a slight increase of 0.81% year-on-year. However, the net profit excluding non-recurring items decreased by 6.07% to 909 million yuan [1][3]. - In Q4 2024, the company reported a revenue of 2.394 billion yuan, a year-on-year increase of 22.1%, but a quarter-on-quarter decline of 9%. The net profit attributable to shareholders in this quarter was 76 million yuan, down 57.32% year-on-year and 73.6% quarter-on-quarter [1][3]. - The company has a record high order backlog of 17.975 billion yuan as of March 21, 2025, with significant contributions from both submarine cable systems and land cable systems [2][3]. Revenue by Business Segment - In 2024, the submarine cable system generated a revenue of 2.778 billion yuan, a year-on-year increase of 0.41%. The marine engineering revenue was 889 million yuan, up 25.29%. The land cable revenue was approximately 5.416 billion yuan, showing a growth of 41.52% [2][3]. - The gross margins for submarine cable systems, marine engineering, and land cables were 39.57%, 21.93%, and 7.59%, respectively, with year-on-year declines of 9.57 percentage points, 2.60 percentage points, and 0.37 percentage points [2][3]. Order Backlog and Market Expansion - The company has accelerated its dual development in marine and land projects, recently announcing several significant order wins, including a land cable project worth approximately 382 million yuan and submarine cable projects totaling around 1.864 billion yuan [2][3]. - The company is actively expanding its domestic and international operations, with overseas revenue reaching 733 million yuan in 2024, a remarkable year-on-year growth of 480.54% [3]. Financial Forecast - The company is projected to achieve revenues of 11.632 billion yuan, 14.131 billion yuan, and 15.328 billion yuan for 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is expected to be 1.613 billion yuan, 2.289 billion yuan, and 2.446 billion yuan for the same years [4][3]. - The report indicates that the price-to-earnings (PE) ratios for 2025, 2026, and 2027 are approximately 21x, 15x, and 14x, respectively [3][4].