Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The report highlights that the company's overseas revenue is rapidly growing, and cash flow has significantly improved [2] - The company achieved a revenue of 31.731 billion yuan in the first three quarters of 2024, a year-on-year increase of 0.70%, and a net profit attributable to shareholders of 2.060 billion yuan, up 2.90% year-on-year [5] - The report emphasizes the strong performance of domestic orders and the high growth in new contracts for operation and maintenance services, indicating a diversification of the business [5] Summary by Sections Financial Performance - In Q3 2024, the company experienced a slight decline in revenue and net profit, with quarterly revenues showing a year-on-year change of +2.47%, +0.68%, and -1.13% for Q1, Q2, and Q3 respectively [5] - The gross profit margin increased by 0.24 percentage points to 18.86%, while the net profit margin slightly decreased by 0.03 percentage points to 6.85% [5] - The company reported a net cash outflow of 260 million yuan, which is an increase of 246 million yuan year-on-year, primarily due to the domestic cement market affecting collection progress [5] Order and Contract Analysis - The company signed new contracts worth 52.788 billion yuan in the first three quarters of 2024, a year-on-year increase of 1%, with Q3 alone contributing 15.699 billion yuan, up 35% year-on-year [5] - The report notes that the domestic orders saw a significant increase, particularly in engineering and operation and maintenance services, which grew by 309% and 41% respectively in Q3 [5] Earnings Forecast and Valuation - The company is expected to have an EPS of 1.18 yuan in 2024 and 1.28 yuan in 2025, with a reasonable valuation range of 12.77 to 14.04 yuan based on a PE ratio of 10-11 times for 2025 [5][6] - The report maintains an "Outperform the Market" rating, citing the company's leading position in cement engineering technology services globally and the ongoing transformation in high-end equipment manufacturing and production operations [5]

Investment Rating - The report maintains a rating of "Buy" for the company [5]. Core Views - The company is expected to see stable growth in operational orders driven by technological upgrades and new production lines, with potential investment returns from its stake in overseas cement production lines [2]. - The forecasted EPS for 2024-2026 is projected to be 1.27, 1.44, and 1.60 yuan, reflecting growth rates of 15%, 13%, and 11% respectively [3]. - The target price is set at 17.16 yuan, corresponding to a PE ratio of 13.5 times for 2024 [3]. Financial Summary - For the first three quarters of 2024, the company reported revenue of 31.73 billion yuan, a year-on-year increase of 0.70%, and a net profit of 2.1 billion yuan, up 2.90% year-on-year [3]. - The operating cash flow for the first three quarters of 2024 was -260 million yuan, compared to -14 million yuan in the same period of 2023 [3]. - The company signed new contracts worth 52.8 billion yuan in the first three quarters of 2024, representing a growth of 1.1% year-on-year, with operational management orders increasing by 36% [3][14]. Order and Revenue Breakdown - The new signed contracts for engineering services amounted to 33.6 billion yuan, a decrease of 5.9% year-on-year, while operational management contracts increased significantly [14]. - Domestic new contracts decreased by 5% to 22.6 billion yuan, while overseas contracts increased by 6% to 30.2 billion yuan [14]. Dividend and Shareholder Returns - The company plans to increase its dividend payout ratio by no less than 10% annually over the next three years, with a current dividend yield of 3.94% [3]. - The company aims for a compound annual growth rate of net profit of no less than 15.5% from 2022 to 2024 [3].

Investment Rating - The report maintains a "Recommended" rating for the company [2][5]. Core Views - The company reported a steady performance with revenue of 31.731 billion yuan for the first three quarters of 2024, reflecting a year-on-year growth of 0.7%. The net profit attributable to shareholders reached 2.06 billion yuan, up 2.9% year-on-year [1]. - The company experienced a significant increase in new contracts, particularly in mining operation services, which saw a 45% year-on-year growth, totaling 8.191 billion yuan [2]. - The company is committed to its international development strategy, leveraging both domestic and international markets, which indicates strong future growth potential [2]. Financial Performance Summary - For the first three quarters of 2024, the gross margin was 18.86%, an increase of 0.24 percentage points year-on-year, while the net profit margin was 6.85%, a slight decrease of 0.03 percentage points [1]. - The company’s asset-liability ratio decreased to 61.04%, down 0.78 percentage points year-on-year [1]. - The forecast for net profit attributable to shareholders for 2024-2026 is 3.215 billion, 3.743 billion, and 4.282 billion yuan, representing year-on-year growth rates of 10.27%, 16.41%, and 14.40% respectively [2][4].

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company has shown resilience with a steady performance in Q3, highlighted by a 0.7% year-on-year increase in revenue to 317.31 billion yuan and a 2.9% increase in net profit to 20.6 billion yuan [2][3] - New signed orders in Q3 improved significantly, reaching 157.0 billion yuan, a 35% year-on-year increase, with domestic orders growing by 87% [3] Company Overview - Latest closing price: 10.26 yuan - Total shares: 2.642 billion, circulating shares: 2.234 billion - Total market capitalization: 27.1 billion yuan, circulating market capitalization: 22.9 billion yuan - 52-week high/low: 13.38/8.66 yuan - Debt-to-asset ratio: 62.1% - Price-to-earnings ratio: 9.16 - Largest shareholder: China National Building Material Group Corporation [1] Financial Performance - Q3 gross margin: 17.84%, a decrease of 1.27 percentage points year-on-year - Q3 net margin: 6.34%, an increase of 0.01 percentage points year-on-year - Q3 financial expenses decreased by 30.3% year-on-year, indicating improved currency exchange issues [3] - Q3 investment net income was 13 million yuan, compared to a loss of 50.65 million yuan in the same period last year [3] Earnings Forecast - Expected revenue for 2024 and 2025: 479 billion yuan and 517 billion yuan, respectively, with year-on-year growth rates of 4.63% and 7.98% - Expected net profit for 2024 and 2025: 32.73 billion yuan and 35.00 billion yuan, with year-on-year growth rates of 12.24% and 6.94% - Corresponding P/E ratios for 2024 and 2025 are projected to be 8.3X and 7.8X [4][5]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company has shown steady revenue growth with a positive turnaround in new contract signing rates, particularly in operation and maintenance services [2][3][4]. - The company is expected to benefit from increasing carbon and environmental regulations, which may drive further order growth [4]. - The company has committed to enhancing shareholder returns through a plan to increase dividend payouts over the next three years [4]. Financial Performance - For the first nine months of 2024, the company achieved revenues of 31.7 billion yuan, a year-on-year increase of 0.7%, and a net profit attributable to shareholders of 2.1 billion yuan, up 2.9% [1][2]. - The gross profit margin for the same period was 18.9%, reflecting a slight increase, while the net profit margin was 6.9%, showing a minor decrease [2]. - The company reported a net cash outflow from operating activities of 260 million yuan, which is a significant increase compared to the previous year [2]. Contract Signing and Order Growth - In Q3 2024, the company signed new contracts worth 15.7 billion yuan, with a year-on-year growth of 35%, indicating a recovery in contract signing rates [3]. - The new contract structure is improving, with operation and maintenance contracts accounting for 25% of total new contracts, and significant growth in mining and cement operation contracts [3][4]. - The company’s new domestic and international orders for the first nine months were 22.58 billion yuan and 30.2 billion yuan, respectively, with a year-on-year decrease of 5% and an increase of 6% [3]. Profit Forecast and Valuation - The report has adjusted the profit forecast for the company, lowering the net profit estimates for 2024-2026 to 3.16 billion yuan, 3.36 billion yuan, and 3.69 billion yuan, respectively [4]. - Despite the challenges in the cement industry, the company’s new order growth and rapid expansion in operation services are expected to improve its business structure [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company achieved a slight revenue growth of 0.70% year-on-year in the first three quarters, with total revenue reaching 31.731 billion yuan and a net profit attributable to shareholders of 2.060 billion yuan, reflecting a year-on-year increase of 2.90% [4][5]. - In the third quarter alone, the company reported a revenue of 10.836 billion yuan, a decrease of 1.13% year-on-year, while the net profit increased by 4.24% to 661 million yuan [4][5]. - The company’s new contract value for the first three quarters was 52.788 billion yuan, a year-on-year increase of 1%, with significant growth in production operation services [5][6]. - The gross profit margin slightly improved in the first three quarters, reaching 18.86%, while the expense ratio also increased [6][7]. - The company is actively transforming into equipment manufacturing and operational services, with overseas business continuing to show resilience [7]. Summary by Sections Financial Performance - For the first three quarters, the company reported total revenue of 31.731 billion yuan, a 0.70% increase year-on-year, and a net profit of 2.060 billion yuan, up 2.90% [4]. - The third quarter saw a revenue of 10.836 billion yuan, down 1.13% year-on-year, while net profit rose 4.24% to 661 million yuan [4][5]. - The gross profit margin for the first three quarters was 18.86%, with a slight increase compared to the previous year [6]. Orders and Contracts - The company signed new contracts worth 52.788 billion yuan in the first three quarters, marking a 1% increase year-on-year [5]. - The domestic engineering orders saw a significant increase of 309% year-on-year in the third quarter, indicating a strong foundation for future revenue recognition [5]. Cash Flow and Financial Health - The company experienced a net cash outflow of 260 million yuan from operating activities in the first three quarters, with a cash collection ratio of 78.45%, down 3.20 percentage points year-on-year [7]. - The asset-liability ratio decreased by 1.78 percentage points to 61.04% [7]. Future Outlook - The company is expected to achieve net profits of 3.36 billion yuan, 3.90 billion yuan, and 4.46 billion yuan for the years 2024 to 2026, respectively, with corresponding valuations of 8.1, 7.0, and 6.1 times [7].

证券研究报告 非金融公司|公司点评|中材国际（600970） 利润率小幅改善，现金流阶段承压 请务必阅读报告末页的重要声明 glzqdatemark1 2024年10月27日 证券研究报告 |报告要点 公司发布 2024 年三季报，24Q1-3 收入 317.3 亿元，yoy+0.7%，归母净利润 20.6 亿元，yoy+2.9%， 扣非归母净利润 20.5 亿元，yoy+2.2%；单 24Q3 收入 108.4 亿元，yoy-1.1%，归母净利润 6.6 亿元，yoy+4.2%，扣非归母净利润 6.5 亿元，yoy-5.1%。单 24Q3 归母净利润同比增长提速， 主要系投资收益增加影响。预计公司 2024-2026 年收入分别为 505/564/638 亿，分别 yoy+10%/12%/13%，归母净利预测为 33/37/43 亿，yoy 分别+13%/14%/14%，维持"买入"评级。 |分析师及联系人 武慧东 吴红艳 SAC：S0590523080005 请务必阅读报告末页的重要声明 1 / 5 非金融公司|公司点评 glzqdatemark2 2024年10月27日 中材国际(600970) 利润率 ...

Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Insights - The company reported steady growth in performance, with a significant acceleration in new orders in the third quarter of 2024 [2][3]. - The revenue for the first three quarters reached 31.731 billion yuan, with a year-on-year increase of 0.7%, while the net profit attributable to shareholders was 2.060 billion yuan, up 2.9% year-on-year [2]. - The company’s gross margin improved, with a gross margin of 18.9% for the first three quarters, reflecting a 0.2 percentage point increase year-on-year [2]. - The operating cash flow faced some pressure, with a net cash outflow of 260 million yuan in the first three quarters, primarily due to the domestic cement market affecting collection progress [2]. - The company’s debt ratio decreased to 61.0%, down 1.8 percentage points year-on-year, indicating an ongoing optimization of the capital structure [2]. Financial Performance Summary - Total revenue (in million yuan) is projected to grow from 45,799 in 2023 to 56,955 in 2026, with year-on-year growth rates of 6.94%, 6.32%, 7.56%, and 8.75% respectively [1][9]. - Net profit attributable to shareholders is expected to increase from 2,916 million yuan in 2023 to 4,194 million yuan in 2026, with corresponding growth rates of 14.74%, 11.68%, 13.13%, and 13.84% [1][9]. - The latest diluted EPS is forecasted to rise from 1.10 yuan in 2023 to 1.59 yuan in 2026, with a decreasing P/E ratio from 9.33 to 6.49 over the same period [1][9]. Order and Contract Insights - The company experienced a significant increase in new contracts, with a total of 15.7 billion yuan in new contracts signed in the third quarter, representing a year-on-year increase of 35% [2]. - The total uncompleted contract amount reached 62.06 billion yuan by the end of the third quarter, indicating a solid backlog that supports future revenue growth [2].

Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 10.30 CNY [6]. Core Views - The company reported a revenue of 31.731 billion CNY for the first three quarters of 2024, a year-on-year increase of 0.70%, and a net profit attributable to shareholders of 2.060 billion CNY, up 2.90% year-on-year [2]. - The company is expected to benefit from the domestic cement decarbonization space, providing energy-saving and emission-reduction equipment and system services [4]. - The report forecasts net profits for 2024-2026 to be 3.440 billion, 3.900 billion, and 4.360 billion CNY, respectively, with corresponding PE ratios of 8, 7, and 6 times [4]. Financial Performance - For Q3 2024, the company achieved a revenue of 10.836 billion CNY, a decrease of 1.13% year-on-year, while the net profit was 661 million CNY, an increase of 4.24% year-on-year [2]. - The gross margin for Q3 2024 was 17.84%, up 1.27 percentage points year-on-year, while the net margin was 6.34%, showing a slight increase of 0.01 percentage points year-on-year [2]. - The company’s financial expenses for Q1-Q3 2024 increased by 87.6% year-on-year, but Q3 saw a decrease of 30.3% year-on-year [4]. Contract and Order Performance - New contracts signed in Q3 2024 showed strong domestic performance, with domestic contracts amounting to 89.6 billion CNY, a year-on-year increase of 87%, while overseas contracts were 67.4 billion CNY, a slight decrease of 2% [3]. - The company’s engineering technology services, high-end equipment manufacturing, and production operation services orders for the first nine months of 2024 were 33.63 billion, 4.98 billion, and 13.12 billion CNY, respectively [3]. Future Outlook - The report emphasizes the company's ongoing diversification and the potential for growth in the domestic cement decarbonization market [4]. - The company is expected to enhance its dividend payout ratio and increase collaboration within the group for overseas expansion [4].

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's Q3 performance met expectations, with a slight acceleration in revenue growth and improved profitability metrics. The total revenue for Q1-Q3 2024 reached 31.7 billion, a year-on-year increase of 0.7%, while the net profit attributable to shareholders was 2.06 billion, up 2.9% year-on-year [1][2]. - The company has seen significant growth in overseas equipment and operation and maintenance orders, with new orders totaling 52.8 billion in Q1-Q3, a year-on-year increase of 1%. Q3 alone saw new orders of 15.7 billion, a remarkable 35% increase year-on-year [2]. - The report projects net profits for 2024-2026 to be 3.4 billion, 3.6 billion, and 4.0 billion respectively, with corresponding EPS of 1.27, 1.38, and 1.53. The current stock price corresponds to P/E ratios of 8.1, 7.5, and 6.7 for the respective years [2][3]. Financial Performance Summary - For Q1-Q3 2024, the company achieved a gross margin of 18.86%, an increase of 0.24 percentage points year-on-year. The net profit margin for Q1-Q3 was 6.5%, up 0.14 percentage points year-on-year [1]. - The company reported a total revenue of 45.8 billion for 2023, with a projected revenue of 48.2 billion for 2024, reflecting a growth rate of 5.2% [3][10]. - The net profit for 2023 was 2.9 billion, with an expected increase to 3.4 billion in 2024, indicating a growth rate of 15.5% [3][10]. Order and Contract Status - As of the end of Q3 2024, the company had an order backlog of 62.1 billion, which is 1.35 times its revenue for 2023, indicating a robust order reserve [2]. - The report highlights that the company’s engineering services segment saw a decline in new orders, primarily due to low domestic cement capital expenditure, while overseas equipment orders showed strong growth [2].