ORIENT CABLE (NBO)(603606) 东吴证券·2024-10-27 12:52Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The company's revenue for Q1-Q3 2024 reached 6.7 billion yuan, a year-on-year increase of 25.2%, with a net profit attributable to shareholders of 930 million yuan, up 13.4% year-on-year. The gross margin was 22.2%, down 4.1 percentage points year-on-year [2] - The company has stable revenue and gross margin in its submarine cable and marine engineering business, with Q3 revenue from submarine cable systems at 1.232 billion yuan and a stable gross margin [2] - As of October 18, 2024, the company had an order backlog of 9.236 billion yuan, with stable orders in submarine cables and a slight increase in land cables [2] - The company recognized asset impairment losses of 13.64 million yuan in Q3, primarily due to credit impairment losses on accounts receivable, which increased significantly [2] - The company expects to see cash flow improve as it anticipates receiving payments throughout the year [2] Financial Forecasts and Valuation - The profit forecast for 2024 has been adjusted downwards due to significant credit impairment in Q3, while the profit forecasts for 2025 and 2026 have been raised due to positive developments in key projects [3] - The expected net profit attributable to shareholders for 2024-2026 is 1.22 billion, 2.02 billion, and 2.42 billion yuan respectively, with corresponding growth rates of 22%, 65%, and 20% [3] - The price-to-earnings ratio (P/E) for 2024-2026 is projected to be 33x, 20x, and 17x respectively [3]