ORIENT CABLE (NBO)(603606) 国盛证券·2024-10-27 09:43Investment Rating - The report maintains an "Accumulate" rating for the company [3]. Core Views - The company has shown significant growth in revenue and net profit for the first three quarters of 2024, with a revenue of 6.699 billion yuan, up 25.22% year-on-year, and a net profit of 932 million yuan, up 13.41% year-on-year [1]. - The company is expected to benefit from the acceleration of offshore wind power construction in China, particularly in the cable sector, with a notable increase in orders for submarine cables [2]. - The company has a strong order backlog, with approximately 9.236 billion yuan in hand orders as of October 18, 2024, indicating robust future revenue potential [1]. Financial Performance - For Q3 2024, the company achieved a revenue of 2.631 billion yuan, representing a year-on-year increase of 58.34% [1]. - The gross margin for Q3 2024 was approximately 21.74%, an increase of 0.85 percentage points year-on-year, while the net margin was about 10.95%, a decrease of 1.41 percentage points year-on-year [1]. - The company’s net profit for Q3 2024 was 288 million yuan, up 40.28% year-on-year, despite a quarter-on-quarter decline of 24.36% [1]. Segment Analysis - The revenue from land cable systems for the first nine months of 2024 was 3.688 billion yuan, accounting for 55.14% of total revenue, while submarine cable systems and marine engineering generated 3.001 billion yuan, making up 44.86% [1]. - In Q3 2024, land cable systems generated 1.394 billion yuan in revenue, up 53.12% year-on-year, while submarine cable systems and marine engineering achieved 1.232 billion yuan, up 64.50% year-on-year [1]. Order Backlog and Future Prospects - The company has seen a significant increase in submarine cable orders, with a notable project for a 500kV submarine cable valued at 933 million yuan expected to be delivered by April 1, 2025 [2]. - The company’s contract liabilities as of the end of Q3 2024 were 859 million yuan, reflecting a 194% increase quarter-on-quarter and a 162% increase year-on-year [1].