ORIENT CABLE (NBO)(603606) 民生证券·2024-10-24 13:30Investment Rating - The report maintains a "Recommended" rating for the company, considering the expected recovery in industry demand, the scale and structure of the company's orders, and its leading profitability levels [1]. Core Views - The company achieved a revenue of 6.699 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 25.22%. The net profit attributable to shareholders was 932 million yuan, with a year-on-year increase of 13.41% [1]. - The company has a backlog of orders amounting to approximately 9.236 billion yuan as of October 18, 2024, with significant recent wins in high-voltage cable projects [1]. - The projected revenues for 2024-2026 are 8.96 billion, 11.25 billion, and 12.16 billion yuan, with net profits of 1.25 billion, 1.91 billion, and 2.19 billion yuan respectively [1]. Financial Performance Summary - For Q3 2024, the company reported a revenue of 2.631 billion yuan, a year-on-year increase of 58.34%, and a net profit of 288 million yuan, up 40.28% year-on-year [1]. - The gross margin for Q3 2024 was approximately 21.74%, reflecting a year-on-year increase of 0.85 percentage points, while the net margin was about 10.95%, down 1.41 percentage points year-on-year [1]. - The company’s revenue from marine cables and offshore engineering was 3.001 billion yuan, accounting for 44.86% of total revenue, while land cable systems generated 3.688 billion yuan, making up 55.14% [1]. Order Backlog and Recent Wins - The order backlog includes 2.949 billion yuan for marine cable systems, 4.890 billion yuan for land cable systems, and 1.397 billion yuan for offshore engineering [1]. - Recent significant bids include a 500kV submarine cable project worth approximately 909 million yuan and a 66kV offshore cable project valued at around 216 million yuan [1].