东方电缆20250217

Summary of the Conference Call for Dongfang Cable Industry Overview - Dongfang Cable is a leading player in the domestic offshore wind market, with strong order acquisition capabilities. The company is expected to experience accelerated growth in 2025, coinciding with the conclusion of the 14th Five-Year Plan. [2] - The domestic offshore wind grid connection scale is projected to reach 12GW in 2025, a significant increase from 4GW in 2024, indicating high growth and certainty. [2][3] Key Points on Company Performance - Dongfang Cable has secured multiple contracts for ultra-high voltage flexible DC submarine cable projects, showcasing its expertise in this area. [3] - As of October 2024, the company has an order backlog exceeding 9.2 billion yuan, with 2.9 billion yuan attributed to submarine cable orders, which are expected to enhance overall gross margins upon delivery. [3][4] - The company is actively expanding into overseas markets, having established a product company in the Netherlands and invested in UK companies CC and First Link. [5] Future Growth Prospects - The deep-sea demonstration projects are currently undergoing bidding, with domestic deep-sea installed capacity expected to reach between 12-15GW by 2026 and exceed 50GW by 2030. [3] - Dongfang Cable is anticipated to enter a performance realization phase in 2025, with estimated net profits around 1.9 billion yuan and a current valuation of approximately 18 times earnings. [6] - The company is expected to benefit from strong future demand, leading to potential valuation elasticity in the industry, thus making it a key investment recommendation. [6] Noteworthy Achievements - Dongfang Cable has made significant strides in the European market, including winning the SDN road connection project in 2020 and the HK WB project in 2022, marking its first high-voltage submarine cable project in Europe. [5] - The company secured an 1.8 billion yuan order for a HK submarine cable project in 2024, further solidifying its presence in the European market. [5] Conclusion - Dongfang Cable is well-positioned for growth in both domestic and international markets, with a robust order backlog and a strategic focus on high-demand areas such as offshore wind and deep-sea projects. The company's historical valuation levels and future growth potential make it a compelling investment opportunity. [6]