ORIENT CABLE (NBO)(603606) 国海证券·2024-10-25 07:09Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5][8] Core Views - The company's performance in Q3 2024 met market expectations, with significant growth in revenue and net profit. Revenue reached 2.631 billion yuan, a year-on-year increase of 58.3%, while net profit attributable to shareholders was 288 million yuan, up 40.3% year-on-year [1][2] - The order delivery scale aligns with market expectations, and the gross profit margin remains stable. In Q3 2024, the company achieved revenue of 1.394 billion yuan from land cables (up 53.2% year-on-year) and 1.232 billion yuan from submarine cables and offshore engineering (up 64.3% year-on-year) [2] - The company's accounts receivable reached 3.889 billion yuan by the end of Q3 2024, an increase of 856 million yuan quarter-on-quarter and 924 million yuan year-on-year, marking a historical high [2] - The actual orders on hand for submarine cables exceeded 4 billion yuan, showing a significant increase compared to previous disclosures. The company is expected to see a peak in order fulfillment in the coming six months [2][5] Summary by Sections Financial Performance - In Q3 2024, the company reported a comprehensive gross profit margin of 21.74%, remaining stable compared to previous periods. The operating performance, excluding credit impairment losses, was over 300 million yuan [2] - The company is projected to achieve revenues of 8.81 billion yuan, 10.21 billion yuan, and 12.01 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 1.354 billion yuan, 1.814 billion yuan, and 2.249 billion yuan [5][6] Market Position and Future Outlook - The company has successfully opened overseas markets, securing orders from Inch Cape Offshore and SSE, which provide long-term growth potential. The upcoming tendering for significant projects in Guangdong and Zhejiang is expected to further boost order intake [5][6] - The company’s stock has outperformed the CSI 300 index over various time frames, indicating strong market performance [2]