Sinoma-int(600970) Guolian Securities·2024-07-11 09:30Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company faces pressure on new contract signing growth due to a sluggish domestic cement industry, but the transformation prospects remain promising [2]. - The company has a strong order backlog, with an uncompleted contract amount of 59.2 billion, which is 1.3 times the revenue of 2023 [2]. - The operational and maintenance segments show high growth, while engineering and equipment segments continue to face challenges [3][4]. - The company is enhancing its competitiveness and optimizing its business model through digitalization and green initiatives [5]. Summary by Sections Contract Signing and Performance - In H1 2024, the company signed new contracts worth 37.1 billion, down 9% year-on-year, with Q2 alone seeing a 16% decline [2]. - The operational and maintenance segments achieved new contracts of 8.9 billion and 3.3 billion respectively, with year-on-year growth of 41% [3]. - The company’s overseas new contracts grew by 9% year-on-year, while domestic contracts fell by 28% [4]. Financial Forecasts - Revenue projections for 2024-2026 are 50.5 billion, 56.4 billion, and 63.8 billion respectively, with year-on-year growth rates of 10%, 12%, and 13% [5]. - The forecasted net profit for 2024-2026 is 3.3 billion, 3.8 billion, and 4.3 billion respectively, with growth rates of 13% each year [5]. - The expected earnings per share (EPS) for the same period are 1.25, 1.42, and 1.62 yuan per share [5]. Valuation Metrics - The current price is 10.25 yuan, with a projected dynamic dividend yield of approximately 4.9% based on a 40% payout ratio [5]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 12.3 in 2022 to 6.3 by 2026 [6]. - The price-to-book (P/B) ratio is expected to decline from 1.9 in 2022 to 1.0 in 2026 [6].