Key investment events: the company released its quarterly report of 2024, and 24Q1 achieved revenue of 13%.Gonzoquestmegaways.1 billion, year-on-year-8.86%, month-on-month-33.16%, homing net profit 263 million, year-on-year + 2.95%, month-on-month + 47.82%, gross profit 22.23%, year-on-year-8.73pct, month-on-month-0.22pct. Deducting non-recurring profit and lossGonzoquestmegawaysThe return net profit of 193 million,-22.17% compared with the same period last year. In the off-season of the industry, bad debts rush back to drive performance. The company's 24Q1 performance rose month-on-month, mainly due to positive asset disposal gains / credit impairment losses of 52 million / 47 million, respectively, helping the performance to exceed market expectations under the background of the sea breeze off-season. From a business point of view, 24Q1's revenue from land cable / submarine cable system / offshore engineering respectively reached 7.38max 3.81 / 189 million yuan, compared with the same period last year. The progress of the offshore wind power industry has slowed down due to non-economic factors over the past 23 years. Based on the offshore wind power development plan of the 14th five-year Plan, the total grid-connected capacity of provincial offshore wind power planning is close to 60GW. Up to now, there are still super-30GW grid installation demand has not been released, is expected to usher in large-scale construction in 2024-2025, the demand certainty is high. According to the wind power bidding data, from the pace of project construction, about 11-12GW is expected to be connected to the grid in 2024. Since April, the sea breeze projects in Zhejiang, Jiangsu, Guangdong and other places have been promoted, and the construction is expected to speed up. The company has a significant advantage in taking orders, and the performance can be boosted. There are plenty of orders on hand, and there is plenty of room for performance growth. During the reporting period, the company won the bid for land cable system of 1.7 billion yuan, Huaneng Yuhuan No. 2 offshore wind power project EPC general contractor 220kV and 66kV submarine optoelectronic composite cable and accessories procurement (low frequency) project about 328 million yuan, Zhongguang Nuclear Zhaoyuan 400MW offshore photovoltaic project (HG30) project 35kV submarine optoelectronic composite cable procurement and installation project 89 million yuan Guodian Power Xiangshan Offshore Wind Power Co., Ltd. Xiangshan offshore wind farm (phase I) project 35kV submarine cable deep-buried construction project and other projects, submarine cable system and marine engineering won the bid of about 700 million yuan. As of April 25, 2024, the company has 7.137 billion orders on hand, of which submarine cable system 2.58 billion, land cable system 3.682 billion, ocean engineering 875 million, 220 kv and Shanghai cable and umbilical cord cable account for nearly 30% of the total orders, which can effectively support the performance. Expand overseas markets and increase the layout of Europe. In recent years, many European countries have raised their sea breeze planning targets. In May 22, four European countries (Germany, Denmark, Belgium and the Netherlands) signed the Espyo Declaration at the North Sea Summit, promising that the cumulative installed capacity of sea breeze would reach 65GW by 2030 and 150GW by 2050. In May 23, Oriental Cable signed the Offshore Wind Power products supply Agreement with the joint venture company of Orsted- Woxu and PGE- Polish Power Grid, with a total contract amount of about 350 million yuan, making new breakthroughs in European business. In January, 24, the company bought shares in Xlinks First and XLCC Limited in the UK, and continued to strengthen its European business layout, which is expected to continue to improve the company's ability to obtain orders. The company actively creates the southern headquarters, promotes the construction of the deep sea new power system innovation center, enhances the southern core competitiveness and the overall influence, and radiates the Southeast Asian market. Investment suggestion: the development of offshore wind power around the world has shown a high boom, the company has a significant advantage in the field of submarine cable, and is optimistic about the development prospect of the company. It is estimated that the net profit from 2024 to 2026 will be 14.61,19.44 and 2.46 billion yuan respectively, corresponding to EPS2.12, 2.83 and 3.58 yuan per share, corresponding to PE21, 16 and 12 times, and maintaining the "buy-B" rating. Risk tips: 1, raw material prices have risen sharply; 2, wind power installation is lower than expected; 3, new product research and development is lower than expected [disclaimer] this article only represents the views of third parties, not the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.