2023年年报点评：海缆盈利能力优异，受益海风复苏起量在即

Investment Rating - The report initiates coverage with a "Buy" rating for Dongfang Cable (603606.SH) [2][3]. Core Views - The company reported a revenue of 7.31 billion yuan in 2023, a year-on-year increase of 4.3%, and a net profit attributable to shareholders of 1 billion yuan, up 18.8% year-on-year [2][7]. - The company's cash flow from operating activities significantly improved, reaching 1.19 billion yuan in 2023, an increase of 83.9% year-on-year [2][14]. - The company is expected to benefit from the recovery of the offshore wind industry, with a projected high growth in orders for 2024 [2][14]. - The company is actively expanding its overseas market presence through investments in foreign companies [2][15]. Financial Performance - In 2023, the revenue breakdown was as follows: land cables 3.83 billion yuan (down 3.8%), submarine cables 2.77 billion yuan (up 23.5%), and marine engineering 710 million yuan (down 9.9%) [2][10]. - The gross margin for submarine cables reached 49.14% in 2023, an increase of 5.9 percentage points year-on-year, contributing to an overall gross margin of 25.2%, up 2.8 percentage points [2][10]. - The company’s net profit is projected to grow to 1.3 billion yuan in 2024, reflecting a year-on-year increase of 30% [2][3]. Order Backlog and Market Outlook - As of March 15, 2024, the company had an order backlog of 7.86 billion yuan, with land cables at 3.75 billion yuan (up 73.1%), submarine cables at 3.16 billion yuan (down 45%), and marine engineering at 950 million yuan (down 21.7%) [2][14]. - The report anticipates a recovery in the offshore wind sector, which is expected to drive significant order growth for the company in 2024 [2][14]. Overseas Expansion - In January 2024, the company announced plans to invest in Xlinks First and XLCC, acquiring 2.4% and 8.5% stakes respectively, to enhance its overseas market presence [2][15].