ORIENT CABLE (NBO)(SH:603606) 光大证券研究·2025-08-18 23:05Core Viewpoint - The company reported a decline in net profit for the first half of 2025, primarily due to delays in the delivery of submarine cable orders caused by slow domestic offshore wind construction, despite a slight increase in revenue [3][4]. Financial Performance - In H1 2025, the company achieved operating revenue of 4.432 billion yuan, an increase of 8.95% year-on-year, while net profit attributable to shareholders was 473 million yuan, a decrease of 26.57% [3]. - The gross margin fell by 4.17 percentage points to 18.26%, and the net margin decreased by 5.16 percentage points to 10.67% [3]. - In Q2 2025, the company reported operating revenue of 2.285 billion yuan, a year-on-year decrease of 17.13%, and a net profit of 192 million yuan, down 49.56% year-on-year [3]. Business Segment Performance - The submarine cable and high-voltage cable business generated revenue of 1.957 billion yuan in H1 2025, up 8.32% year-on-year, with a gross margin of 25.02% [4]. - The marine equipment and engineering operation business saw a significant revenue decline of 44.61%, totaling 275 million yuan, with a gross margin of 29.13% [4]. - The power engineering and equipment cable business achieved revenue of 2.196 billion yuan, an increase of 24.85% year-on-year, with a gross margin of 10.78% [4]. Order Backlog and Future Outlook - The company has a robust order backlog of 19.6 billion yuan as of August 12, 2025, which includes 11 billion yuan for submarine and high-voltage cables, 5 billion yuan for power engineering and equipment cables, and 3.6 billion yuan for marine equipment and engineering operations [5]. - The company is expected to accelerate the delivery of submarine cable orders in H2 2025, with significant projects already under construction, including contracts worth approximately 1.8 billion yuan from Inch Cape Offshore and 1.708 billion yuan from China General Nuclear Power Group [6][7].