Ningbo Orient Cable Co., Ltd. (Orient Cable) (603606)

Equity Research Report　|　Industry: High-End Cable Manufacturing and Marine Engineering Services　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; data compiled through September 13, 2026. Closing prices differ slightly across platforms: Daban Ke/Aigupiao reported RMB 35.65, while Investing reported RMB 35.66; this report primarily uses RMB 35.65.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Orient Cable currently exhibits the characteristics of “relatively rapid growth in orders and revenue, pressure on profit and cash flow, and high prosperity in submarine cables yet to be fully realized.” In the first half of 2026, the company recorded revenue of approximately RMB 5.800 billion, up 30.85% year on year, and net profit attributable to shareholders of approximately RMB 565 million, up 19.41% year on year. However, net cash flow from operating activities was negative RMB 157 million, a significant deterioration from RMB 714 million in the same period last year. The company disclosed approximately RMB 17.934 billion in orders on hand in August 2026. Recently awarded projects totaled approximately RMB 2.842 billion, providing some support for future revenue, although there is a time lag from project award and contract signing to delivery, acceptance and revenue recognition.

Within the company’s business mix, land-cable systems drive scale growth but have relatively low gross margins. In 2024, land-cable systems generated revenue of RMB 5.416 billion with a gross margin of approximately 7.59%; submarine-cable systems generated revenue of RMB 2.778 billion with a gross margin of 39.57%; and marine engineering generated revenue of RMB 889 million with a gross margin of 21.93%. In 2025, submarine cables and high-voltage cables generated revenue of approximately RMB 5.363 billion, up 65.60% year on year, becoming an important driver of profit growth. However, net profit attributable to shareholders in the second quarter of 2026 was approximately RMB 193 million, down approximately 48% sequentially, indicating that the pace of project delivery and revenue recognition, price competition in high-voltage land cables, and changes in the business mix continue to affect the release of earnings.

The company is a first-tier domestic submarine-cable manufacturer. Its competitive advantages primarily derive from its high-voltage and extra-high-voltage submarine-cable technologies, offshore-wind project experience, coastal production bases, and integrated submarine-cable installation and marine-engineering capabilities. Future growth is expected to come from the execution of submarine-cable and high-voltage-cable orders, a higher proportion of high-technology products such as dynamic submarine cables and deepwater umbilicals, and the release of capacity at its Ningbo, Beilun and Yangjiang bases. However, planned or designed capacity data do not equate to actual effective capacity or utilization.

As of September 11, 2026, the stock closed at RMB 35.65. After declining significantly from its early-July high, it rebounded on higher volume, moving above short-term moving averages and the Bollinger middle band, but remained below the 200-day moving average of approximately RMB 37.17. Technical resistance exists around RMB 36.0–36.5 and RMB 37.2–37.8. The stock is currently closer to a technical recovery and range-bound rebound following a decline. Its valuation corresponds to approximately 18.4x TTM P/E and 3.48x P/B. Further re-rating will depend on the recognition of submarine-cable project revenue, gross-margin recovery, improvement in operating cash flow and delivery of earnings forecasts.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Land-cable systems: Includes high-voltage and extra-high-voltage land cables, smart-grid cables, nuclear-power cables, rail-transit cables, fire-resistant cables, communication cables, control cables, overhead conductors and integrated wiring. Applications include power grids, buildings, rail transit, petrochemicals, nuclear power and industrial engineering.
• Submarine-cable systems: Includes AC submarine cables, DC submarine cables, optical-electricity composite submarine cables, submarine optical cables, offshore-wind power transmission cables and cross-sea interconnection cables.
• Marine engineering: Includes submarine-cable installation and laying, offshore construction, marine-engineering services, operation and maintenance services, deepwater umbilicals and dynamic submarine-cable systems. Applications include offshore wind power, offshore oil and gas development, and deep-sea and distant-sea energy projects.
• Integrated solutions: Primarily focused on deep-sea and distant-sea umbilicals and dynamic-cable systems, extra-high-voltage cable and submarine-cable systems, smart distribution-network cables and engineering-cable systems, as well as marine and land engineering services and O&M systems.
• 2024 business breakdown: Submarine-cable systems generated revenue of approximately RMB 2.778 billion, up 0.41% year on year, with a gross margin of 39.57%; marine engineering generated revenue of approximately RMB 889 million, up 25.29%, with a gross margin of 21.93%; land-cable systems generated revenue of RMB 5.416 billion, up 41.52%, with a gross margin of approximately 7.59%. Submarine-cable systems and marine engineering together generated revenue of RMB 3.666 billion, accounting for approximately 40.32% of total revenue; land-cable systems accounted for approximately 59.57%.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Orient Cable operates in the middle of the power-equipment value chain, in the “high-end cable manufacturing plus marine-engineering services” segment. The company uses low-margin land cables to support scale, high-margin submarine cables to contribute profit, and marine engineering, submarine-cable installation, O&M and deep-sea equipment services to extend toward system integration.

• Major purchases include copper conductors, aluminum conductors, copper rod, aluminum rod, cross-linked polyethylene and other insulating materials, semiconductive shielding materials, polyethylene and PVC sheath materials, steel strip and armoring materials, optical fiber and accessories.
• Production and engineering operations also require submarine-cable production equipment, testing equipment and construction equipment.
• In 2024, direct materials amounted to RMB 6.359 billion, accounting for 86.20% of costs in electrical machinery and equipment manufacturing; direct labor accounted for 1.03%, and manufacturing overhead accounted for 3.36%. By product, direct materials accounted for 92.29% of submarine-cable system costs and 96.11% of land-cable system costs.
• The company’s cost structure is characterized by “materials-heavy, labor-light” operations. Changes in copper, aluminum and insulating-sheath material prices can materially affect gross margins.
• The company is not a copper, aluminum or other mineral-resource producer and does not own relevant mineral reserves. Its pricing power over bulk raw materials is limited, and it relies mainly on order and contract mechanisms for price pass-through, hedging or material-price linkage management.
• Research notes do not disclose the concentration of major raw-material suppliers or the procurement share of the top five suppliers. Such data are unavailable, making it impossible to assess supplier-concentration risk on this basis.
• Major customers include State Grid, China Southern Power Grid and their procurement platforms; the five major power-generation groups and renewable-energy generators; offshore-wind developers and EPC contractors; offshore oil and gas companies; and customers in rail transit, nuclear power, petrochemicals, large industrial projects, overseas power and offshore-wind projects.
• In 2024, sales to the five largest customers totaled RMB 3.196 billion, accounting for 35.15% of annual sales. The annual report did not disclose customer names, making it impossible to determine the specific composition of the top five customers based solely on the annual report. This is based on 2024 data and sourced from the company’s annual report; the research notes provide no other annual data for cross-checking. The latest annual report should prevail.
• The company disclosed that no individual customer accounted for more than 50% of total sales. However, the combined share of the five largest customers reached 35.15%, indicating relatively high downstream customer concentration without dependence on a single customer.
• The land-cable business is more focused on power-grid tenders, engineering projects and regional power construction. Products are relatively standardized, while price competition and pressure to pass through raw-material costs are more pronounced.
• The submarine-cable business is project-based, customized and subject to high certification barriers. Customers place particular emphasis on safety records, technical capabilities, delivery capabilities and engineering track records. Leading companies have stronger pricing power and customer stickiness in high-voltage and extra-high-voltage projects.
• End customers for submarine cables are typically large energy companies, power-grid companies and wind-power developers. Orders are large and delivery cycles are long, while project delays and settlement cycles may increase working-capital requirements.
• Days sales outstanding indicate that the company’s large downstream power-grid, wind-power and engineering customers have relatively long payment periods: approximately 185.80 days in 2021, 126.49 days in 2022, 132.46 days in 2023 and 118.92 days in 2024. The 2024 figure was significantly lower than in 2021, indicating improved collection efficiency. These figures come from a third-party financial-indicator database and were not recalculated item by item from the notes to the company’s annual report in this study. The precise methodology may be affected by average accounts receivable, revenue and fourth-quarter revenue-recognition practices. They should be viewed only as trend indicators and do not replace formal annual-report figures. The research notes do not provide accounts receivable as a percentage of revenue or net profit, prepayments or accounts payable.
• In 2024, the five largest customers accounted for 35.15% of sales, with total sales of RMB 3.196 billion. Customer names were not disclosed in the annual report, and the research notes provide no top-five customer data for other years for cross-checking. Therefore, it can only be concluded that customer concentration was relatively high, while no individual customer accounted for more than 50% of sales according to the disclosure. The precise degree of customer dependence should be assessed based on the latest annual report. Supplier-concentration data were not disclosed.

Orient Cable is positioned in the middle of the power-equipment value chain, but its businesses are clearly tiered. Ordinary land cables are closer to midstream processing and manufacturing, relying mainly on scale, regional markets, customer channels and cost control. High-voltage and extra-high-voltage submarine cables occupy a technologically advanced and higher-value-added position within midstream manufacturing. Marine engineering, submarine-cable installation, O&M and deep-sea equipment services extend toward downstream system integration. The core driver of further profit improvement is not control of copper, aluminum or other mineral resources, but a higher proportion of high-technology products such as high-voltage DC cables, 500kV submarine cables, dynamic submarine cables and deepwater umbilicals, capacity release at the Yangjiang and Beilun bases, and expansion into overseas projects.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The 2026 interim report was disclosed on August 5, 2026 and was unaudited. Net profit attributable to shareholders after extraordinary items in the first half of 2026 was RMB 559 million, up 21.03% year on year; basic EPS was RMB 0.69, up 18.97%. In 2025, net profit attributable to shareholders after extraordinary items was RMB 1.254 billion, up 38.01%; basic EPS was RMB 1.85, up 25.85%.

Revenue maintained relatively rapid growth in the first half of 2026, but net-profit growth attributable to shareholders lagged revenue growth, resulting in a net margin of approximately 9.7%. Net cash flow from operating activities was negative RMB 157 million, compared with RMB 714 million in the same period last year, indicating a significant weakening in operating cash flow. Second-quarter profit declined sharply sequentially. Publicly available research reports mainly attributed this to a mismatch between delivery and revenue-recognition timing for certain submarine-cable projects and the impact of price competition in high-voltage land cables on gross margins. In the first half of 2026, submarine-cable and high-voltage-cable revenue was approximately RMB 2.365 billion, up approximately 20.9% year on year, with a gross margin of approximately 26.1%. The breakdown and gross-margin data mainly come from brokerage interim-report reviews and require verification against subsequent company periodic reports. In 2025, submarine-cable and high-voltage-cable revenue was approximately RMB 5.363 billion, up 65.60% year on year, making it an important driver of profit growth. Power engineering and equipment-cable revenue was approximately RMB 4.729 billion, up 7.29%, while marine equipment and engineering O&M revenue was approximately RMB 740 million, down approximately 48%. Net assets attributable to shareholders of the listed company were approximately RMB 8.283 billion at the end of 2025 and increased to approximately RMB 8.457 billion at the end of June 2026. Total assets were approximately RMB 17.458 billion at the end of June 2026.

3.2 Earnings Forecasts

As of September 11, 2026, the THS F10 summary showed that 24 institutions had issued forecasts for 2026 earnings in the preceding six months, while 23 institutions had provided 2028 forecasts. Revenue, net profit attributable to shareholders and EPS in the table represent the average of institutional forecasts, not company guidance or a single-broker forecast. Forecast net profit attributable to shareholders was approximately RMB 1.410–2.007 billion for 2026, RMB 1.820–2.591 billion for 2027 and RMB 2.080–3.149 billion for 2028. Selected forecasts include Huatai Securities at RMB 1.629 billion, RMB 2.015 billion and RMB 2.403 billion for 2026–2028; Guosheng Securities at RMB 1.551 billion, RMB 2.217 billion and RMB 2.781 billion; Huaan Securities at approximately RMB 1.9 billion, RMB 2.3 billion and RMB 2.7 billion; and Nomura Orient International Securities at RMB 1.949 billion, RMB 2.469 billion and RMB 2.895 billion.

3.3 Valuation and Institutional Ratings

As of the September 10, 2026 close, the stock price was approximately RMB 34.49, market capitalization was approximately RMB 28.448 billion and P/B was approximately 3.36x. P/E figures differ across platforms: dynamic P/E was approximately 24.99x, TTM P/E approximately 17.81x and static P/E approximately 18.64x; another platform showed P/E of approximately 20.87x and adjusted P/E of approximately 21.05x. Based on 2025 basic EPS of RMB 1.85, the stock corresponded to a static P/E of approximately 18.6x. Based on consensus EPS forecasts, forecast P/E for 2026–2028 was approximately 16.3x, 13.0x and 10.8x; based on Huatai Securities’ EPS forecasts, the corresponding multiples were approximately 17.4x, 14.1x and 11.9x. The median consensus target price from publicly available research reports over the past 180 days was approximately RMB 71.29. Another analyst sample from Investing.com gave a 12-month average target price of RMB 55.81, with a high of RMB 65.83 and a low of RMB 43. The statistical methodologies are inconsistent. Huatai Securities’ target price of RMB 45.74 issued on August 5, 2026 is among the more recent single-institution targets. Current valuation has declined from the market highs of the first half of 2026, but the stock is still not a traditionally low-valued cable company. Further re-rating will depend on offshore-wind construction and grid-connection schedules, submarine-cable revenue recognition, gross-margin recovery and profit recovery in the second half of 2026. Key uncertainties include negative operating cash flow, delays in project revenue recognition, price competition in high-voltage land cables and the broad range of institutional earnings forecasts.

4. Recent News and Announcements

4.1 Overall Recent Announcement Status

As of September 11, 2026, Orient Cable’s most recent major announcement was the Indicative Announcement on Recently Awarded Projects, disclosed on August 25, 2026, with announcement number 2026-028. No new major ad hoc announcement by the company on the Shanghai Stock Exchange was identified for the period from September 1 to September 11, 2026. As some third-party announcement pages may be updated with a delay, the Shanghai Stock Exchange and the company’s subsequent formal disclosures should prevail.

4.2 Recently Awarded Projects Total Approximately RMB 2.842 Billion

On August 25, 2026, the company disclosed that it had recently received multiple notices of award and public tender results, confirming that it had become the winning bidder for multiple projects, with total awarded value of approximately RMB 2.842 billion. Green transmission infrastructure, comprising power engineering and equipment cables, accounted for approximately RMB 1.520 billion, including approximately RMB 331 million in State Grid projects and approximately RMB 1.189 billion in major projects and other tender procurements involving rail transit, energy and petrochemicals. Electric power and renewables, comprising submarine cables and high-voltage cables, accounted for approximately RMB 978 million, including approximately RMB 428 million for China Southern Power Grid’s 500kV submarine-cable and accessory procurement project, approximately RMB 395 million for high-voltage-cable projects from State Grid and China Southern Power Grid, and approximately RMB 154 million for extra-high-voltage and high-voltage cable projects involving railways, rail transit and ports. Deep-sea technology, comprising marine equipment and engineering O&M, accounted for approximately RMB 344 million. Some projects remain at the stage of award notification, result announcement or contract signing. Final contract values, performance schedules, settlement methods and revenue-recognition timing remain uncertain.

4.3 Awarded Amounts Confirmed in Investor-Relations Response

On September 1, 2026, the company reconfirmed on its investor-relations platform that the awarded amounts disclosed in the August 25 announcement for green transmission infrastructure, electric power and renewables, and deep-sea technology were approximately RMB 1.520 billion, RMB 978 million and RMB 344 million, respectively, totaling approximately RMB 2.842 billion.

4.4 2026 Interim Report: Revenue and Net Profit Growth

The company disclosed its 2026 interim report on August 5, 2026. During the reporting period, it generated revenue of approximately RMB 5.800 billion, up 30.85% year on year; net profit attributable to shareholders of the listed company of approximately RMB 565 million, up 19.41%; and net profit after extraordinary items of approximately RMB 559 million, up 21.03%. Net cash flow from operating activities was approximately negative RMB 157 million, compared with approximately RMB 714 million in the same period last year. The company proposed no profit distribution or capitalization of capital reserves during the reporting period and held its interim-results presentation on August 11, 2026.

4.5 Orders on Hand of Approximately RMB 17.934 Billion

As of August 3, 2026, the company had orders on hand of approximately RMB 17.934 billion, including approximately RMB 4.850 billion in power engineering and equipment cables, RMB 9.128 billion in submarine cables and high-voltage cables, and RMB 3.956 billion in marine equipment and engineering O&M. There is a time lag from project award to formal contract signing, production and delivery, acceptance and settlement, and revenue recognition.

4.6 No 2026 Annual or Third-Quarter Earnings Forecast Disclosed

As of September 11, 2026, no separate earnings forecast, earnings flash or earnings preannouncement for full-year 2026 or the first three quarters of 2026 had been identified. The 2026 interim report is a formal periodic report and does not constitute an earnings forecast.

4.7 No New Share-Buyback or Share-Increase Plan Yet

As of September 11, 2026, no newly disclosed share-repurchase plan, repurchase-progress announcement or share-increase announcement by the controlling shareholder had been identified for August–September 2026. On September 4, 2026, the company stated on its investor-relations platform that, as of the response date, no new share-increase or repurchase plan had been formed. Any subsequent measures would be announced promptly in accordance with regulations. An investor-relations response does not have the same legal effect as a formal repurchase announcement; subsequent developments should be based on formal Shanghai Stock Exchange announcements.

4.8 Shareholder and Selling Activity

The 2026 interim report showed that as of June 30, 2026, Ningbo Orient Group Co., Ltd. held 261,029,333 shares, or 31.65%, and was the controlling shareholder; Yuan Liyu held 55,795,434 shares, or 6.76%; and Hong Kong Securities Clearing Company Limited held 41,819,167 shares, or 5.07%. During the reporting period, the holdings of Ningbo Orient Group Co., Ltd., Yuan Liyu and Hong Kong Securities Clearing Company Limited increased by 43,504,889 shares, 9,299,239 shares and 20,361,432 shares, respectively, mainly as a result of the capitalization of capital reserves under the 2025 profit distribution. These increases cannot be directly interpreted as purchases on the secondary market. As of September 4, 2026, the company stated that it had not received any disposal plan from the controlling shareholder, actual controller or shareholders holding more than 5%, and no new announcement on major-shareholder disposals, pledges or judicial freezes in September 2026 had been identified.

4.9 Cash-Management Balance of Approximately RMB 395 Million

On August 5, 2026, the company disclosed progress on its cash-management activities. As of the announcement date, the company and its subsidiaries had conducted cumulative cash management of approximately RMB 969.954 million, redeemed approximately RMB 574.954 million, and had approximately RMB 395 million in outstanding cash-management products. The products mainly consisted of seven-day notice deposits and structured deposits. The funds were temporarily idle internal funds and did not constitute a new major external investment or M&A transaction. The board had previously approved the use of no more than RMB 500 million of temporarily idle internal funds for cash management for 12 months from the date of approval by the 2025 board meeting, with funds available for revolving use.

4.10 No New Major M&A or Asset Restructuring Identified

As of September 11, 2026, no new major M&A, asset restructuring or equity-acquisition transaction disclosed by the company during August–September 2026 had been identified. A previously disclosed related-party property purchase that remains under progress involves the company’s proposed purchase from Ningbo Orient Nanyuan Real Estate Co., Ltd. of 32 residential units in Building 1 of the “Yunxie Puting” project, with a total floor area of approximately 4,200.35 square meters and a transaction value of approximately RMB 73.29905 million. As of the interim-report disclosure date, the relevant purchase agreement had completed online registration at the end of May 2026, the company had paid 50% of the down payment, and delivery was expected by December 30, 2027. This is progress on an existing related-party transaction, not a new M&A or asset-restructuring transaction in August–September 2026.

4.11 No New Regulatory Penalties or Inquiries Identified

As of September 11, 2026, no announcement had been identified indicating that the company had received a regulatory inquiry, regulatory work letter, disciplinary sanction from the Shanghai Stock Exchange, a CSRC investigation or an administrative penalty during August–September 2026. The company’s 2026 interim report disclosed that, during the reporting period, neither the company nor its controlling shareholder or actual controller was suspected of violating laws or regulations or subject to penalties or rectification. Recent awarded projects involve State Grid, China Southern Power Grid, railways, rail transit, ports and marine engineering, but they are operating orders and should not simply be equated with new favorable industry policies.

4.12 Key Items to Track

Going forward, investors should focus on the signing of formal contracts for approximately RMB 2.842 billion of awarded projects, project delivery and revenue-recognition timing, execution of submarine-cable and high-voltage-cable orders, and whether the company discloses new share-repurchase, shareholder-disposal or share-increase plans.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Orient Cable closed at RMB 35.65, up 3.36% on the day. Turnover value increased from approximately RMB 457 million on September 10 to approximately RMB 1.006 billion, while turnover rose to 3.44%, forming a rebound on higher volume. The stock moved above the short-term moving averages around MA5, MA10, MA20 and MA50 and above the Bollinger middle band, but remained below MA200 at approximately RMB 37.17. Short-term resistance exists around RMB 36, while medium-term technical resistance exists around RMB 37.2–37.8. MACD and RSI both indicate a recovery in short-term momentum, but the recovery in fund flows remains unstable, and September 11 major-fund flows could not be confirmed under a consistent methodology. Overall, the current setup is better characterized as a technical recovery and range-bound rebound after a decline. Continuation will depend on the validity of a breakout through RMB 36.0–36.5, the sustainability of subsequent trading volume, and support from related sectors and fund flows.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk Warning: The following content is a subjective scenario analysis based on closing data, historical prices and technical indicators as of September 11, 2026. It does not constitute investment advice or a definitive forecast of future share prices.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weighting, Not Statistical Probability)

• Range-bound consolidation (relatively high subjective weighting, approximately 50%–60%; a heuristic judgment based on current technical indicators, trading volume and fund-flow data, not a statistical probability): Expected range of approximately RMB 34.0–36.5. Triggers include subsequent turnover value falling back to approximately RMB 300–600 million and the stock remaining above RMB 34 without breaking effectively through RMB 36.0–36.5. This scenario corresponds to a rise, consolidation and digestion after the high-volume rebound.
• Strengthening rebound (medium subjective weighting, approximately 30%; a heuristic judgment based on current technical indicators, trading volume and fund-flow data, not a statistical probability): Expected range of approximately RMB 36.5–37.8. Triggers include an effective break above RMB 36.0–36.5, daily turnover value remaining above the recent norm and reaching approximately RMB 600–800 million or more, simultaneous strength in related sectors such as offshore wind and power-grid equipment, and major funds shifting from periodic outflows to continuous net inflows. If these conditions are met, a rebound toward the RMB 37.2–37.8 area around MA200 and the Bollinger upper band may be observed. However, a move above RMB 36 should not be equated simply with a medium-term trend reversal.
• Weak downside (low-to-medium subjective weighting, approximately 20%; a heuristic judgment based on current technical indicators, trading volume and fund-flow data, not a statistical probability): Expected range of approximately RMB 32.9–34.0. Triggers include the stock falling below RMB 34 again and closing below it for consecutive sessions, higher turnover accompanied by weak closing prices indicating a high-volume stagnation or decline, weakness in related sectors or a significant decline in overall risk appetite, and an effective break below the RMB 32.99 period low. If RMB 32.9–33.0 is lost, the short-term technical structure will weaken again, with the Bollinger lower-band estimate around RMB 32 becoming the next area to watch for support.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, the latest verifiable turnover value from September 3 to September 10 was approximately RMB 232–655 million, with turnover rates of approximately 0.85%–2.34%. On September 11, turnover value increased to approximately RMB 1.006 billion and the turnover rate rose to 3.44%. For a stock with a market capitalization of approximately RMB 29.4 billion, a one-day turnover rate of 3.44% is not extremely active, but it was clearly above the norm of the preceding week and constitutes a short-term trend signal. Shareholder-structure data as of June 30, 2026, announced on August 5, 2026, showed that the ten largest tradable shareholders held 50.61% in aggregate. The controlling shareholder and related shareholders accounted for a relatively large proportion, while public funds, basic pension funds, insurers and brokerages were also among the ten largest tradable shareholders. Institutional ownership was approximately 45.74%. Because the data were more than two months old as of the latest trading date, holdings may have changed. During the same period, shareholder count increased from 41,665 to 75,077, while shares held per shareholder declined from 16,505 to 10,986, indicating a significantly more dispersed shareholder structure in the second quarter. In practice, the sustainability of the high-volume rebound should be assessed using subsequent turnover value, turnover rate and price levels, rather than relying solely on a single day’s turnover or lagging shareholder data.

A verifiable volume-confirmation signal would be the following: if turnover value remains above approximately RMB 600 million for two consecutive trading days and the closing price stabilizes above RMB 36, this could indicate stronger short-term fund participation and a more effective breakout. If turnover value quickly falls below RMB 300 million and the stock falls back below RMB 34, the sustainability of the high-volume rebound should be reassessed.

④ Points to Monitor (Observational Ideas Only, Not Trading Instructions)

• Observe whether the RMB 36.0–36.5 resistance area can be decisively broken with continued higher turnover; this is an observational idea, not a trading instruction.
• Observe whether the RMB 34.0–34.5 moving-average cluster can provide support during a pullback; this is an observational idea, not a trading instruction.
• Observe whether the RMB 32.9–33.3 strong-support area is decisively breached and whether a breach would open room for a test toward the Bollinger lower-band area around RMB 32; this is an observational idea, not a trading instruction.
• Observe whether subsequent turnover value can remain above approximately RMB 600 million for consecutive sessions rather than only showing a single-day surge, and whether major-fund flows shift from the sustained net outflows of mid-to-late August to consecutive net inflows; this is an observational idea, not a trading instruction.

The above scenario analysis is based on closing data as of September 11, 2026, historical prices and technical-indicator calculations. Short-term share prices may also be affected by news flow, liquidity, the broader market and other factors. Technical indicators are inherently lagging and limited. This analysis does not guarantee future performance or constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and bear investment risks themselves.

6. Industry Structure and Competitor Analysis

6.1 Industry Overview

The wire and cable industry covers multiple segments, including ordinary low-voltage cables, high-voltage and extra-high-voltage cables, submarine cables and specialty cables. Technical barriers and profitability vary significantly among segments. Ordinary land cables have numerous participants, relatively high product homogeneity, intense price competition and significant pressure to pass through raw-material costs. Submarine cables—particularly 220kV, 330kV and 500kV AC submarine cables and high-voltage DC submarine cables—require strong capabilities in R&D, testing, production, transportation, installation and project delivery. Their industry barriers and concentration are therefore higher.

6.2 Competitive Landscape

• The domestic submarine-cable market exhibits a “three leaders with tiered competition” structure dominated by Orient Cable, Zhongtian Technology and Hengtong Optic-Electric; Han Cable and Baosheng Science & Technology are in the second tier.
• Some industry research estimates that Orient Cable, Zhongtian Technology and Hengtong Optic-Electric together account for approximately 87% of the domestic submarine-cable market. This is not a regulatory disclosure, and differences in year, product scope and statistical methodology may produce divergent results. It should be used only as a directional indicator of industry concentration, not as a precise market-share figure.
• Competitive advantages primarily derive from R&D and testing capabilities for high-voltage products, offshore-wind project supply records, long-term operating safety records, coastal production bases and dedicated terminals, submarine-cable installation vessels and offshore construction capabilities, long-term customer relationships, overseas certifications and international project experience.
• As offshore wind develops toward deeper waters, floating wind and large-capacity transmission, the importance of dynamic submarine cables, high-voltage DC submarine cables, and 330kV and 500kV AC submarine cables is increasing. Leading companies continue to hold clear advantages in technology and project experience.
• Orient Cable has facilities including the Ningbo High-Voltage Submarine-Cable Factory, the Ningbo Eastern Beilun base and the Guangdong Yangjiang Extra-High-Voltage Submarine-Cable Southern Industrial Base. Related planned annual output value and capacity figures are based on design or planning assumptions and do not equal current actual output, effective capacity or utilization.
• In 2024, submarine-cable system production was 814.232 kilometers, sales were 791.199 kilometers and inventory was 330.628 kilometers. Land-cable system production was 133,003.936 kilometers, sales were 134,079.971 kilometers and inventory was 21,090.331 kilometers. Because submarine and land cables differ substantially in value per kilometer, kilometers cannot be directly equated with revenue scale or capacity utilization.

6.3 Major Competitors

Orient Cable, Zhongtian Technology and Hengtong Optic-Electric are all in the first tier of the domestic submarine-cable industry. Orient Cable’s competitive advantages are concentrated in high-voltage and extra-high-voltage submarine-cable technology, offshore-wind project track records, coastal bases, dedicated terminals, submarine-cable installation and integrated marine-engineering capabilities. Compared with Zhongtian Technology and Hengtong Optic-Electric, Orient Cable is more focused on offshore-wind power submarine cables, offshore oil and gas umbilicals and offshore engineering services. Compared with Han Cable and Baosheng Science & Technology, Orient Cable is stronger in high-voltage submarine-cable industrialization and integrated marine-engineering capabilities.

7. Risk Factors

• Uncertainty exists in submarine-cable project delivery and revenue-recognition timing. Net profit attributable to shareholders in the second quarter of 2026 was approximately RMB 193 million, down approximately 48% sequentially. Relevant information indicates a mismatch between delivery and revenue recognition for certain submarine-cable projects. Some recently awarded projects remain at the stage of award notification, result announcement or contract signing, and final contract value, performance schedule, settlement method and recognition timing may deviate from expectations.
• The land-cable business has a relatively high revenue share and weak profitability, potentially continuing to dilute overall gross margins. Land-cable systems accounted for approximately 59.57% of 2024 revenue, with a gross margin of approximately 7.59%. High-voltage land cables also faced price competition in the first half of 2026. If land-cable revenue continues to grow faster than high-margin submarine cables, revenue growth may not translate into equivalent profit growth.
• Fluctuations in copper, aluminum and insulating-sheath material prices directly affect profitability. Direct materials accounted for 86.20% of relevant manufacturing costs in 2024, while direct-material shares of submarine-cable and land-cable product costs were approximately 92.29% and 96.11%, respectively. The company does not own copper or aluminum mineral resources and has limited raw-material pricing power. If contract price linkage, hedging or cost pass-through is insufficient, gross margins may come under pressure.
• Operating cash flow may weaken. Net cash flow from operating activities was negative RMB 157 million in the first half of 2026, compared with RMB 714 million in the same period last year. Large downstream power-grid, wind-power and engineering customers have relatively long payment periods. Delays in project delivery, acceptance or settlement could increase accounts receivable and working-capital usage.
• Customer concentration is relatively high, while customer names have not been disclosed, creating risks from fluctuations in project and customer mix. In 2024, sales to the five largest customers totaled RMB 3.196 billion, or 35.15% of annual sales. Although the company disclosed that no individual customer accounted for more than 50% of sales, orders from large power-grid companies, energy companies and EPC contractors are substantial, and delays to key projects or changes in procurement schedules could affect revenue recognition.
• Capacity expansion and base construction entail execution risks. Some capacity and annual output-value figures for the Ningbo, Beilun and Yangjiang bases are based on planning or design assumptions and do not equal actual effective capacity, output or utilization. If capacity is released more slowly than expected, order delivery and economies of scale may be affected; if capacity is released too quickly while order execution lags, fixed-cost and capital-expenditure pressure may arise.
• The pace of offshore-wind and deep-sea project construction may affect growth in high-margin businesses. The company’s submarine-cable and marine-engineering businesses are closely related to offshore-wind transmission, cross-sea interconnection and deep-sea energy projects. Changes in construction, grid connection, approval and installation schedules may cause fluctuations in order execution and profit recognition.
• Current valuation and technical performance remain sensitive to earnings delivery. As of September 11, 2026, the stock price was approximately RMB 35.65, with TTM P/E of approximately 18.41x and P/B of approximately 3.48x. Although the stock has rebounded from its period low, it remains below MA200 at approximately RMB 37.17. If submarine-cable revenue recognition, gross margins or operating cash flow fail to improve as expected, the risks of earnings-estimate cuts and a stalled technical rebound may increase.

8. Conclusion and Outlook

Orient Cable’s medium- and long-term growth foundation primarily comes from high-voltage and extra-high-voltage submarine cables, offshore-wind transmission, cross-sea interconnection, deep-sea energy projects and marine-engineering services. Revenue maintained relatively rapid growth in the first half of 2026. As of August 3, orders on hand were approximately RMB 17.934 billion, while recently awarded projects disclosed in August totaled approximately RMB 2.842 billion, including approximately RMB 978 million in submarine cables and high-voltage cables and RMB 344 million in marine equipment and engineering O&M. The order backlog and technology-oriented business portfolio remain supportive. The consensus institutional averages for net profit attributable to shareholders in 2026–2028 are approximately RMB 1.751 billion, RMB 2.176 billion and RMB 2.620 billion, respectively. However, these forecasts are not company guidance, and the range of institutional estimates is broad.

Short-term earnings elasticity will continue to depend on project delivery and revenue-recognition timing, particularly whether submarine-cable projects can be recognized smoothly, whether price competition in high-voltage land cables eases, and whether the proportion of high-margin businesses increases. The sharp sequential decline in second-quarter profit and negative operating cash flow in the first half indicate that revenue growth has not yet fully translated into profit and cash-flow growth. The 35.15% sales share of the five largest customers and the long payment periods of large power-grid and engineering customers also warrant attention with respect to order concentration and working-capital usage.

Technically, the closing price of RMB 35.65 is above short-term moving averages but remains below MA200. Whether the high-volume rebound can continue requires confirmation from sustained turnover and fund flows. Key variables for the company’s future performance include the signing of formal contracts for awarded projects, delivery, acceptance and revenue recognition, gross margins in submarine cables and high-voltage cables, changes in operating cash flow, and the extent to which institutional earnings forecasts are realized.

Data Sources

• 2024 Annual Report of the Company Limited by Shares
• Orient Cable (603606)_Company Announcements_Orient Cable: 2024 Annual Report_Sina Finance_Sina.com
• 2024 Annual Report of Ningbo Orient Cable Co., Ltd.
• Company Introduction
• Orient Cable (603606) Company Events_F10_THShare Financial Services
• Orient Cable (603606) Financial Indicators_Sina Finance_Sina.com
• Orient Cable (603606) – Fundamental Research Report – Aigu
• China Submarine-Cable Industry Market Development and Investment Opportunity Report, 2026–2032_Zhiyan Consulting
• Zhongtian Technology (600522)_Company Announcements_Zhongtian Technology: 2024 Annual Report_Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Summary of 2024 Annual Report_Sina Finance_Sina.com
• Han Cable (002498)_Company Announcements_Han Cable: 2024 Annual Report_Sina Finance_Sina.com
• Baosheng Science & Technology (600973)_Company Announcements_Baosheng Science & Technology: Summary of 2024 Annual Report_Sina Finance_Sina.com
• List of Companies Listed on the Main Board of the Shanghai Stock Exchange
• https://static.cninfo.com.cn/finalpage/2026-08-05/1225457907.PDF
• https://reportify.cn/reports/1282331486393077760?utm_source=openai
• Orient Cable (603606): 2026 Interim Report Review: Limited Recognition of Submarine-Cable Revenue Plus High-Voltage Land-Cable Price Competition Affected Q2 Gross Margin; Submarine-Cable Delivery Remains Strong – Research Report Radar
• Orient Cable (603606)_Company Announcements_Orient Cable: 2025 Annual Report_Sina Finance_Sina.com
• Orient Cable (603606) Earnings Forecast_F10_THShare Financial Services
• Orient Cable Falls 3.12% Against the Trend; Huatai Securities Maintains an Overweight Rating
• Institutional Ratings|Huafu Securities Gives Orient Cable a “Buy” Rating Without a Target Price
• Orient Cable sh603606 Stock Price, Market Data, Live Feed, News, Financial Reports and Data – Aigupiao
• Stock Code: 603606
• Orient Cable (603606) Announcements (All) – Lixinger
• Ningbo Orient Cable Co., Ltd. Indicative Announcement on Recently Awarded Projects_Sina Finance_Sina.com
• Orient Cable: Green Transmission Infrastructure Awarded Value Approximately RMB 1.520 Billion; Electric Power and Renewables Awarded Value Approximately RMB 978 Million
• Orient Cable (603606)_Company Announcements_Orient Cable: 2026 Interim Report_Sina Finance_Sina.com
• Orient Cable: The Company Has No Material Negative Information That Should Have Been Disclosed but Was Not Disclosed_Securities Star Stock Channel
• Orient Cable Has Used RMB 970 Million of Idle Funds for Cash Management; RMB 395 Million Currently Outstanding_Sina Finance_Sina.com
• Orient Cable (603606) – Historical Trading Data | Daban Ke
• SH.603606 Orient Cable – A-Share Real-Time Quote – Detailed Quote – etnet Hong Kong
• Orient Cable (603606) Stock Price Trend and Technical Analysis_Forecast_Buy/Sell Suggestions_Investing.com
• Orient Cable (603606) Fund Flows_Individual Stock Data_THShare Finance
• Orient Cable (603606) – Tradable Shareholders – Sohu Securities
• Orient Cable (603606) 2026 Interim Report Holdings Details_Data Center_Eastmoney

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current through the September 11, 2026 close, with data compiled through September 13, 2026. Closing prices differ slightly across platforms: Daban Ke/Aigupiao reported RMB 35.65, while Investing reported RMB 35.66; this report primarily uses RMB 35.65. Information may differ in timeliness. Company formal announcements and authoritative data terminals should prevail. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.