ORIENT CABLE (NBO)(SH:603606) HTSC·2026-03-29 07:45Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company is expected to benefit from the high demand for offshore wind power and energy interconnection, leading to a significant increase in submarine cable orders [1][3] - The company reported a revenue of 10.84 billion RMB for 2025, a year-on-year increase of 19.3%, and a net profit of 1.27 billion RMB, up 26.1% year-on-year [1] - The company maintains a strong domestic market position in submarine cables and has experience in delivering overseas orders, which is expected to support continuous performance improvement [1][3] Summary by Sections Financial Performance - In 2025, the company generated revenue of 10.84 billion RMB, with a net profit of 1.27 billion RMB, reflecting a year-on-year growth of 19.3% and 26.1% respectively [1] - The fourth quarter of 2025 saw revenue of 3.35 billion RMB, with a year-on-year increase of 39.7% [1] Market Demand and Growth Potential - The domestic offshore wind power capacity is projected to reach over 100 GW by the end of the 14th Five-Year Plan, with an average annual installation of 10.6 GW, a 39% increase from the previous plan [3] - The company’s submarine cable inventory increased by 147.6% year-on-year to 819 kilometers by the end of 2025, indicating strong future sales potential [2] Order Backlog and Future Projections - As of March 25, 2026, the company had an order backlog of 11.8 billion RMB for submarine and high-voltage cables, maintaining a high level of demand [2] - The company is expected to achieve a compound annual growth rate (CAGR) of 30.92% in net profit over the next three years, with projected net profits of 2.04 billion RMB in 2026 and 2.41 billion RMB in 2027 [5] Valuation - The target price for the company is set at 68.38 RMB, based on a price-to-earnings (PE) ratio of 23.1x for 2026 [5][7]