ORIENT CABLE (NBO)(SH:603606) EBSCN·2026-03-30 14:52Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [3]. Core Insights - The company achieved a revenue of 10.843 billion yuan in 2025, representing a year-on-year growth of 19.26%, and a net profit of 1.271 billion yuan, up 26.11% year-on-year [1]. - The gross margin improved by 3.28 percentage points to 22.11%, while the net profit margin increased by 0.64 percentage points to 11.73% [1]. - The company’s underwater cable and high-voltage cable business saw a revenue increase of 65.60% to 5.363 billion yuan, with a gross margin rise of 5.59 percentage points to 33.36% [2]. - The company’s inventory and contract liabilities grew significantly, with inventory reaching 3.950 billion yuan and contract liabilities at 2.370 billion yuan, both showing over 100% year-on-year growth [2]. - As of March 25, 2026, the company had a backlog of orders amounting to 19.312 billion yuan, ensuring future revenue growth [3]. Financial Summary - Revenue projections for 2026 to 2028 are 13.423 billion yuan, 15.392 billion yuan, and 17.527 billion yuan, respectively, with growth rates of 23.78%, 14.67%, and 13.87% [4]. - Net profit forecasts for the same period are 1.845 billion yuan, 2.371 billion yuan, and 2.830 billion yuan, with growth rates of 45.12%, 28.49%, and 19.36% [4]. - The company’s earnings per share (EPS) are projected to increase from 1.85 yuan in 2025 to 4.11 yuan in 2028 [4]. Valuation Metrics - The price-to-earnings (P/E) ratio is expected to decrease from 33 in 2025 to 15 by 2028, indicating a more attractive valuation over time [4]. - The price-to-book (P/B) ratio is projected to decline from 5.1 in 2025 to 3.1 in 2028, reflecting improved financial health [4].