Ningbo Orient Wires & Cables (603606) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 2.63 billion, up 58.34% year-over-year; net profit attributable to shareholders was RMB 288 million, up 40.28% year-over-year.

• For the first nine months, revenue totaled RMB 6.70 billion, up 25.22% year-over-year; net profit attributable to shareholders was RMB 932 million, up 13.41% year-over-year.

• Land cable system revenue in Q3 was RMB 1.394 billion, up 53.12% year-over-year; submarine cable and marine engineering revenue was RMB 1.232 billion, up 64.50% year-over-year.

• As of October 18, 2024, order backlog stood at RMB 9.24 billion, with submarine cable at RMB 2.95 billion, land cable at RMB 4.89 billion, and marine engineering at RMB 1.40 billion.

• New subsidiaries established in Fujian and Shandong to expand business scope and production capacity.

Financial highlights

• Q3 net profit attributable to shareholders: RMB 288 million, up 40.28% year-over-year.

• Q3 basic and diluted EPS: RMB 0.42, up 40.00% year-over-year.

• Nine-month net profit attributable to shareholders: RMB 932 million, up 13.41% year-over-year.

• Nine-month basic and diluted EPS: RMB 1.36, up 13.33% year-over-year.

• Operating cash flow for the first nine months: RMB 285 million, up 301.35% year-over-year.

Outlook and guidance

• Order backlog as of October 18, 2024, is RMB 9.24 billion, supporting future revenue growth.

• Strategic expansion in new energy and marine engineering through new subsidiaries aligns with long-term growth plans.