ORIENT CABLE (NBO)(603606) 诚通证券·2024-12-19 02:56Investment Rating - The report gives a "Strong Buy" rating for the company [1]. Core Views - The company is a leading player in the domestic submarine cable industry, benefiting from the growth of the global offshore wind power sector [1]. - The offshore wind power industry in China is entering a growth phase, with significant potential for expansion in the medium to long term [1]. - The company has a strong order backlog, which supports its performance for 2024 and 2025 [1]. Summary by Sections Company Overview - The company has been deeply involved in the cable industry for many years and is a core supplier of land and submarine cable systems in China [1][14]. - The company began its offshore cable business in 2005 and has since established a leading position in the domestic market [1][14]. - The offshore cable business has become the main source of profit for the company, with production capacity and R&D technology at industry-leading levels [1][14]. Offshore Wind Power Industry - The domestic offshore wind power industry is experiencing positive changes, with a rich reserve of projects expected to be grid-connected by 2025 [1][51]. - The average distance of offshore wind projects from the shore has increased, which enhances the demand for submarine cables [1][100]. - The company is well-positioned to benefit from the growth of the offshore wind power sector, particularly in Guangdong and Zhejiang provinces [1][117]. Financial Performance - The company has shown rapid growth in recent years, with a compound annual growth rate (CAGR) of 19.3% in revenue from 2018 to 2023 [1][36]. - The net profit CAGR from 2018 to 2023 reached 42.4%, indicating strong profitability [1][38]. - Revenue is projected to reach 93 billion, 126 billion, and 138 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 12 billion, 20 billion, and 22 billion yuan [1][135]. Market Position and Competitive Advantage - The company is part of a stable competitive landscape in the submarine cable industry, with a strong market share alongside competitors like Zhongtian Technology and Hengtong Optic-Electric [1][103]. - The company has a significant technological advantage, having developed various high-voltage and flexible direct current cable products [1][110]. - The company has established a solid international presence, with ongoing projects in Europe that are expected to contribute to future growth [1][120]. Investment Recommendations - The report suggests that the company will continue to benefit from the rapid development of the global offshore wind power industry, with a strong outlook for future performance [1][135].