ORIENT CABLE (NBO)(SH:603606) Huachuang Securities·2025-09-10 03:45Investment Rating - The report upgrades the investment rating of Dongfang Cable to "Strong Buy" [2][8]. Core Views - The company has a backlog of nearly 20 billion yuan in orders, with accelerated progress in offshore wind projects [2][8]. - For the first half of 2025, the company reported total revenue of 4.432 billion yuan, a year-on-year increase of 8.95%, while net profit attributable to shareholders decreased by 26.57% to 473 million yuan [2][8]. - The decline in net profit is attributed to changes in product delivery structure and a significant asset disposal gain in the previous year [8]. Financial Summary - Revenue Forecast: Projected revenues for 2025, 2026, and 2027 are 11.091 billion yuan, 13.210 billion yuan, and 15.527 billion yuan, respectively, with year-on-year growth rates of 22.0%, 19.1%, and 17.5% [4][9]. - Net Profit Forecast: Expected net profits for the same years are 1.576 billion yuan, 2.019 billion yuan, and 2.509 billion yuan, with growth rates of 56.3%, 28.1%, and 24.3% [4][9]. - Earnings Per Share (EPS): Forecasted EPS for 2025, 2026, and 2027 are 2.29 yuan, 2.94 yuan, and 3.65 yuan, respectively [4][9]. - Valuation Metrics: The company is expected to trade at price-to-earnings (P/E) ratios of 25, 20, and 16 for the years 2025, 2026, and 2027 [4][9]. Business Performance - The company achieved significant revenue growth in its power engineering and equipment cables segment, with a 24.85% year-on-year increase, contributing 49.60% to total revenue [8]. - The underwater cables and high-voltage cables segment also saw an 8.32% increase, accounting for 44.18% of total revenue [8]. - The marine equipment and engineering operations segment experienced a decline of 44.61%, primarily due to reduced high-value marine equipment revenue [8]. Order Backlog and Market Outlook - As of August 12, 2025, the company has an order backlog of approximately 19.6 billion yuan, with significant contributions from various projects, including power engineering and offshore wind projects [8]. - The report anticipates that the delivery of offshore wind projects will significantly increase starting in 2025, supported by the company's strategic partnerships and market expansion efforts [8].