东方电缆：Q3净利同比增长，在手订单充沛

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 62.04, up from the previous target of RMB 51.30 [1][4]. Core Insights - The company reported a Q3 revenue of RMB 2.631 billion, a year-on-year increase of 58.34%, while the net profit attributable to the parent company was RMB 288 million, up 40.28% year-on-year [1]. - The strong performance is attributed to robust demand in wind power installations and growth in high-value-added submarine cable systems [1][3]. - The company maintains a leading position in the submarine cable business, particularly in the high-margin high-voltage submarine cable sector in Guangdong [1][3]. Financial Performance - Q3 gross margin was 21.74%, a slight increase of 0.85 percentage points year-on-year, while the net margin was 10.95%, down 1.41 percentage points year-on-year [2]. - The company’s operating cash flow for the first three quarters of 2024 was RMB 285 million, a significant increase of 301.35% year-on-year [2]. Order Backlog and Market Outlook - As of October 18, 2024, the company had a backlog of orders amounting to RMB 9.236 billion, a year-on-year increase of 30% [3]. - The company is expected to benefit from accelerated project commencement in Q4 2024, with domestic offshore wind installations projected to reach 15GW in 2025 [3]. Profit Forecast and Valuation - The forecasted net profit for 2024-2026 is RMB 1.309 billion, RMB 1.936 billion, and RMB 2.106 billion, respectively, with year-on-year growth rates of 30.92%, 47.86%, and 8.78% [4][5]. - The company is assigned a PE ratio of 22 times for 2025, reflecting its strong market position and expected order growth [4].