海缆业务呈现强劲韧性，“3+1”产业布局助力远期发展

Investment Rating - The investment rating for Dongfang Cable (603606.SH) is "Buy" [4][10]. Core Views - The company's performance in 2023 met expectations, with a year-on-year increase in net profit attributable to shareholders of 19%. The total revenue for 2023 was 7.31 billion yuan, a growth of 4.3%, and the net profit reached 1 billion yuan, up 18.78% year-on-year [5][9]. - The fourth quarter of 2023 saw significant growth, with revenue of 1.96 billion yuan, representing a year-on-year increase of 45.85% and a quarter-on-quarter increase of 18%. The net profit for the fourth quarter was 178 million yuan, up 68.63% year-on-year [9][8]. - The marine cable business showed strong resilience, with revenue from marine cable systems reaching 2.77 billion yuan, a year-on-year increase of 23.47% and a gross margin of 49.14% [9][8]. - The company maintains a high level of orders, with a total order backlog of 7.86 billion yuan as of March 15, 2024, including 3.16 billion yuan from marine cable systems [9][8]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 73.10 billion yuan, a 4.3% increase year-on-year, and a net profit of 10.00 billion yuan, an 18.78% increase year-on-year. The proposed cash dividend is 3.09 billion yuan, accounting for 30.95% of the net profit [5][9]. - The fourth quarter results showed revenue of 19.61 billion yuan, a 45.85% increase year-on-year, and a net profit of 1.78 billion yuan, a 68.63% increase year-on-year [9][8]. Business Segments - The marine cable business experienced growth in both volume and profit, with revenue of 27.66 billion yuan, a 23.47% increase year-on-year, and a gross margin of 49.14%. The land cable system revenue was 38.27 billion yuan, down 3.77% year-on-year, while the marine engineering revenue was 7.09 billion yuan, down 9.94% year-on-year [9][8]. - The company has made significant progress in international markets, with overseas revenue reaching 1.26 billion yuan, a 130.56% increase year-on-year, primarily driven by projects in Scotland [2][9]. Future Outlook - The investment recommendation has been adjusted to reflect lower-than-expected progress in offshore wind power development in key domestic areas. The forecast for net profit attributable to shareholders for 2024-2026 is 1.369 billion, 1.857 billion, and 2.247 billion yuan, respectively [2][9].