Sinoma-int(SH:600970) Soochow Securities·2024-06-18 23:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - China National Materials International Engineering Co., Ltd. is the world's largest provider of cement technology equipment engineering system integration services, offering a comprehensive range of services including R&D design, equipment manufacturing, construction installation, mining services, and production operation [1][11] - The company has achieved significant results in business structure transformation and international development, with engineering, equipment, and operation services contributing 47%, 21%, and 26% to gross profit respectively in 2023 [1] - The company plans to distribute cash dividends of no less than 40% of the distributable profits annually from 2024 to 2026, barring any major investment plans or cash expenditures [1] Summary by Sections Company Overview - The company is recognized as a global leader in cement technology equipment engineering, having constructed 327 cement clinker production lines in 87 countries, maintaining a market share of 65% in the cement technology equipment and engineering sector for 16 consecutive years [11][38] Cement Engineering Market - The "Belt and Road" initiative is expected to drive new EPC demand, with significant opportunities in both domestic and international markets for technological upgrades and operational services [1] - The domestic cement industry faces urgent low-carbon transformation tasks, with approximately 300 million tons of capacity requiring technological upgrades by 2025 [21][22] - Internationally, the demand for new EPC projects is supported by high infrastructure demand in Southeast Asia and the Middle East, with a notable increase in cement production in these regions [25][28] Company Strategy and Growth - The company adopts a "one core, dual drive" strategy, focusing on optimizing its business structure and enhancing collaboration between engineering, equipment, and operational services [1][32] - The engineering business has successfully captured opportunities in overseas markets post-pandemic, leading to a significant increase in new signed EPC projects [1][12] - The equipment business is enhancing its global market share and self-sufficiency, with overseas revenue contributing 25% to the equipment business in 2023 [1][12] - The operational services segment is expanding its market share in mining operations, with new contracts signed showing substantial year-on-year growth [1][12] Financial Forecast and Valuation - The company forecasts a net profit of 33.6 billion, 39.3 billion, and 44.9 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 9.6, 8.2, and 7.2 [1][12]