Sinoma-int(SH:600970) GF SECURITIES·2024-07-17 06:31Investment Rating - The report maintains a "Buy" rating for the company, with a reasonable value estimate of 17.8 CNY per share, compared to the current price of 10.25 CNY [4]. Core Views - New contract signing remains stable at a high level, with a total of 37.1 billion CNY in new contracts signed in the first half of 2024, reflecting a year-on-year decrease of 9% from 40.6 billion CNY in the first half of 2023, which had a significant increase of 68% [2]. - The company is strategically transitioning from engineering to high-margin equipment and operation services, with ample long-term development space. The operation service business is expanding into cement and overseas mining services, with a significant increase in new contracts for mining operation services [2]. - The management plans to further increase the dividend payout ratio, aiming for a growth rate of no less than 10% from 2024 to 2026, which would enhance the investment return safety net [2]. - Profit forecasts indicate that the company's net profit attributable to shareholders is expected to be 3.38 billion CNY, 3.89 billion CNY, and 4.46 billion CNY for 2024, 2025, and 2026, respectively [2]. Financial Summary - Revenue is projected to grow from 45.8 billion CNY in 2023 to 52.2 billion CNY in 2024, reflecting a growth rate of 13.9% [3]. - The net profit attributable to shareholders is expected to increase from 2.92 billion CNY in 2023 to 3.38 billion CNY in 2024, with a growth rate of 15.8% [3]. - The company's earnings per share (EPS) is forecasted to rise from 1.10 CNY in 2023 to 1.28 CNY in 2024 [3].