Investment Rating - The report maintains a "Recommended" rating for the company [2] Core Insights - The company is expected to benefit from the increasing demand for submarine cables, particularly in the offshore wind sector, with significant revenue growth projected in the coming years [5][6] - The company has a robust order backlog of approximately 19.55 billion yuan, with high-margin submarine cable projects making up about 75% of this backlog [5][6] - The report forecasts substantial revenue and profit growth, with expected revenues of 12.11 billion yuan and 14.40 billion yuan for 2025 and 2026, respectively, alongside net profits of 1.58 billion yuan and 2.01 billion yuan [5][6] Financial Projections - Revenue (in million yuan) is projected as follows: - 2024: 9,093 - 2025: 12,105 - 2026: 14,396 - 2027: 16,427 - Net profit (in million yuan) is projected as follows: - 2024: 1,008 - 2025: 1,584 - 2026: 2,008 - 2027: 2,411 - The expected growth rates for revenue and net profit are 24.38% and 0.81% for 2024, 33.13% and 57.11% for 2025, 18.92% and 26.80% for 2026, and 14.11% and 20.03% for 2027, respectively [5][7] Key Financial Ratios - The projected gross margin is expected to improve from 18.83% in 2024 to 25.29% in 2027, indicating enhanced profitability [5][7] - The price-to-earnings (P/E) ratio is forecasted to decrease from 43.41 in 2024 to 18.15 in 2027, suggesting a more attractive valuation over time [5][7]

Core Insights - The nuclear power cable industry is crucial for the safe and stable operation of nuclear power plants, designed to meet extreme performance requirements such as high temperature resistance, radiation resistance, and low smoke halogen-free flame retardancy [1][6][3] - China's nuclear power sector is a key support for energy structure transformation and achieving carbon neutrality goals, with a national strategy focused on the "active, safe, and orderly development of nuclear power" [1][6] - The industry is entering a high prosperity cycle driven by policies, market demand, and technological advancements, with a significant market expansion expected [1][9] Industry Overview - Nuclear power cables are specifically designed for the unique environments of nuclear power plants, requiring high insulation, temperature, radiation, and corrosion resistance [2][3] - The cables play a core role in power transmission, signal control, and system safety, making them essential components for stable power system operation [2][6] Policy Environment - The Chinese government has set ambitious targets for nuclear power capacity, aiming for 70 million kilowatts by 2025 and 131 million kilowatts by 2030, with ongoing approvals for advanced reactor projects [6][9] - Recent policies have been introduced to support the nuclear industry across various dimensions, including development planning, safety assurance, and market access [6][9] Industry Chain - The upstream of the nuclear power cable industry includes suppliers of metals and insulation materials, with domestic companies like Jiangxi Copper and China Aluminum being significant players [7] - The midstream consists of cable manufacturing, dominated by companies such as Jiangsu Shangshang Cable and Far East Group, indicating a high market concentration [7] - The downstream includes nuclear power plant construction units and equipment manufacturers, driving continuous demand for cable products [7] Current Development Status - China's nuclear power sector has seen rapid growth, with 58 operational nuclear reactors and a total installed capacity of 60.88 million kilowatts as of 2024, ranking third globally [8][9] - The industry is expected to see a market scale exceeding 3 billion yuan in 2024, with projections of reaching 3.44 billion yuan by 2025, reflecting a robust annual growth rate of approximately 12% [9][10] Competitive Landscape - The industry is characterized by a few leading domestic companies that dominate the market, such as Anhui Cable and Jiangsu Shangshang Cable, which have achieved breakthroughs in high-end product localization [10] - Other notable companies include Baosheng Co., Shangwei Co., and Hualing Cable, which contribute to the competitive landscape with their specialized cable products [10] Future Development Trends - The industry is expected to evolve through technological innovation, market expansion, and global positioning, focusing on high-end materials and smart monitoring technologies [11][12] - New application scenarios are emerging, including small modular reactors and nuclear hydrogen production, which will drive demand for specialized cables [12] - Chinese companies are anticipated to accelerate their global presence, leveraging the Belt and Road Initiative to enhance their international competitiveness [13]

Core Viewpoint - Wanma Co., Ltd. reported a significant increase in both revenue and net profit for the first three quarters of 2025, indicating strong financial performance and growth potential [1] Financial Performance - The company's operating revenue reached 14.109 billion, representing a year-on-year growth of 8.36% [1] - The net profit attributable to the parent company was 412 million, showing a substantial year-on-year increase of 61.57% [1] - The net profit excluding non-recurring items was 371 million, reflecting a remarkable year-on-year growth of 75.44% [1]

Core Insights - The company reported a revenue of 16.156 billion yuan for the first three quarters of 2025, representing a year-on-year decline of 1.28% [1] - The net profit attributable to shareholders was 223 million yuan, showing a year-on-year increase of 6.3% [1] - The net profit excluding non-recurring items was 204 million yuan, reflecting a year-on-year growth of 2.27% [1] - The basic earnings per share stood at 0.54 yuan [1]

Core Viewpoint - The company reported a decline in revenue for Q3 2025, while net profit showed significant growth compared to the previous year [1] Financial Performance - Revenue for Q3 2025 was 5.991 billion yuan, representing a year-on-year decrease of 1.42% [1] - Net profit attributable to shareholders was 59.8761 million yuan, reflecting a year-on-year increase of 158.82% [1] - Net profit attributable to shareholders after deducting non-recurring gains and losses was 56.3096 million yuan, which is a year-on-year increase of 153.14% [1]

Core Viewpoint - The company reported a decline in revenue and net profit for the first three quarters of 2025 compared to the previous year [1] Financial Performance - The company achieved an operating revenue of 8.941 billion yuan, representing a year-on-year decrease of 12.33% [1] - The net profit attributable to shareholders was 85.0097 million yuan, down 10.77% year-on-year [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 62.9932 million yuan, reflecting a year-on-year decline of 27.51% [1]

Core Viewpoint - Dongfang Cable's net profit attributable to shareholders for the first three quarters of 2025 is 910 million yuan, representing a year-on-year decrease of 1.9% [1] - In Q3, the net profit attributable to shareholders is 440 million yuan, showing a quarter-on-quarter increase of 53.1% and a year-on-year increase of 129.6% [1] Financial Performance - The net profit for Q1-3 2025 is reported at 910 million yuan, which is a slight decline compared to the previous year [1] - The Q3 net profit of 440 million yuan indicates significant growth, both sequentially and year-on-year [1] Project Developments - The delivery of projects such as Guangdong Qingzhou 57 and Fanshi 12 began in Q3, contributing to the revenue recognition from submarine cables [1]

Group 1 - Company Long Cable Technology (SZ 002879) reported third-quarter performance on October 26, indicating revenue of approximately 1.031 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 32.21% [1] - The net profit attributable to shareholders of the listed company was approximately 33.45 million yuan, showing a year-on-year decrease of 39.86% [1] - Basic earnings per share were reported at 0.19 yuan, reflecting a year-on-year decline of 40.63% [1] Group 2 - As of the report, Long Cable Technology has a market capitalization of 3.4 billion yuan [2]

Core Viewpoint - Dongfang Cable (603606.SH) reported its Q3 2025 results, showing a mixed performance with revenue growth but a decline in net profit [1] Financial Performance - The company achieved a revenue of 7.498 billion yuan for the first three quarters, representing a year-on-year increase of 11.93% [1] - The net profit attributable to shareholders was 914 million yuan, reflecting a year-on-year decrease of 1.95% [1] - The net profit after deducting non-recurring gains and losses was 902 million yuan, which indicates a year-on-year growth of 6.45% [1] - Basic earnings per share stood at 1.33 yuan [1]

Core Viewpoint - Far East Holdings (600869.SH) is adopting a dual-driven model of "stable growth in traditional business + high elasticity in emerging sectors" to navigate challenges in the manufacturing industry, with significant growth in contract orders and a strategic shift towards energy and digital technology [1][2]. Group 1: Order Data and Business Resilience - The company reported a total of RMB 216.24 billion in contract orders exceeding 10 million yuan from January to September, marking an 8.37% year-on-year increase and a historical high [1][2]. - The traditional smart cable network segment is projected to achieve revenue of RMB 227.03 billion in 2024, with significant contributions from nuclear-grade cables and high-voltage cables [2]. - Emerging business segments, particularly smart batteries, are expected to see revenue growth of 180.47% in 2024, with contract orders increasing by 411.41% [2]. Group 2: Strategic Positioning in Emerging Fields - The company is focusing on three cutting-edge areas: controllable nuclear fusion, energy + computing + AI, and robotics, which are expected to create a long-term growth moat [3][4][5]. - In controllable nuclear fusion, the company has established itself as a key player, with products already applied in domestic projects and significant technical achievements [4]. - The energy + computing + AI strategy aligns with national policies and aims to build a green computing ecosystem, with ongoing advancements in hardware and technology [5][6]. Group 3: Valuation Logic and Market Perception - The market currently views the company primarily as a traditional cable leader, but breakthroughs in emerging businesses are reshaping its valuation framework [7]. - The company aims for a 210.60% year-on-year increase in net profit for the first half of 2025, driven by significant growth in AI, computing, and robotics sectors [7]. - As the company transitions towards a "technology growth" model, the valuation is expected to realign with its emerging business potential [7].