Sinoma-int(SH:600970) Zheng Quan Zhi Xing·2025-08-27 22:29Core Viewpoint - China National Materials International (中材国际) reported a modest increase in total revenue and net profit for the first half of 2025, but faced challenges with cash flow and profitability metrics [1]. Financial Performance - Total revenue for the first half of 2025 reached 21.676 billion yuan, a year-on-year increase of 3.74% compared to 20.895 billion yuan in 2024 [1]. - Net profit attributable to shareholders was 1.421 billion yuan, up 1.56% from 1.399 billion yuan in the previous year [1]. - In Q2 2025, total revenue was 11.529 billion yuan, reflecting an 8.69% increase year-on-year, while net profit decreased by 0.65% to 758 million yuan [1]. Profitability Metrics - Gross margin decreased to 16.72%, down 13.78% year-on-year from 19.39% [1]. - Net margin slightly declined to 7.09%, a decrease of 0.39% from 7.11% [1]. - The total of selling, administrative, and financial expenses was 1.098 billion yuan, accounting for 5.07% of revenue, a significant decrease of 27.86% year-on-year [1]. Cash Flow and Assets - Operating cash flow per share was -0.23 yuan, a drastic decline of 168.67% compared to 0.34 yuan in the previous year [1]. - The company’s accounts receivable amounted to 11.011 billion yuan, which is 369.11% of the net profit, indicating a high level of receivables relative to profit [1][16]. - Cash and cash equivalents decreased by 5.69% to 7.534 billion yuan [1]. Debt and Liabilities - Interest-bearing debt increased by 5.06% to 7.129 billion yuan [1]. - Long-term borrowings rose by 39.07%, attributed to increased funding needs [7]. Investment and Returns - The company’s return on invested capital (ROIC) was reported at 11.33%, indicating average capital returns [14]. - The estimated dividend yield is 5.28% [15]. Fund Holdings - The largest fund holding in China National Materials International is Guoshou Anbao Taiyu Bond A, with 2 million shares newly entered into the top ten holdings [17].