Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company has experienced rapid growth in annual performance, with a revenue of 10.843 billion yuan in 2025, representing a year-on-year increase of 19.26%. The net profit attributable to shareholders reached 1.271 billion yuan, up 26.11% year-on-year, and the non-recurring net profit was 1.254 billion yuan, reflecting a 38.01% increase [1][7] - The company has seen significant growth in high-margin products, particularly in the offshore cable sector, which has boosted profitability. The gross margin for 2025 was 22.11%, an increase of 3.28 percentage points year-on-year, while the net margin was 11.73%, up 0.64 percentage points [1][7] - The company has secured major offshore wind projects, ensuring a solid delivery scale for 2026. By the end of 2025, inventory reached 3.95 billion yuan, a 115% increase year-on-year, and contract liabilities were 2.37 billion yuan, up 106% [2][24] Summary by Sections Financial Performance - In Q4, the company achieved a revenue of 3.345 billion yuan, a year-on-year increase of 39.75% and a quarter-on-quarter increase of 9.11%. The net profit attributable to shareholders was 357 million yuan, up 370.06% year-on-year, although it decreased by 18.95% quarter-on-quarter [20][22] - The revenue from power engineering and equipment cables was 4.729 billion yuan, a 7.3% increase year-on-year, while revenue from submarine and high-voltage cables surged to 5.363 billion yuan, a 65.6% increase year-on-year [2][24] Market Outlook - The demand for submarine cables is expected to continue to rise, benefiting industry leaders. The year 2026 is anticipated to be a pivotal year for offshore wind development in China, with increasing average offshore distances and higher penetration rates for high-specification cables [3][25] - The company has adjusted its profit forecast slightly downward but maintains the "Outperform the Market" rating, projecting net profits of 2.007 billion yuan, 2.296 billion yuan, and 2.638 billion yuan for 2026-2028, representing year-on-year growth of 58%, 14%, and 15% respectively [3][26]