Sinoma-int(SH:600970) GOLDEN SUN SECURITIES·2024-07-28 06:01Investment Rating - The report maintains a "Buy" rating for the company [4][2]. Core Views - The acquisition of an overseas cement production line by the company's subsidiary is expected to enhance future growth prospects, with the target company generating a profit of $18 million and a return on equity (ROE) of 31% [1]. - The acquisition price is based on a valuation of $130 million, with a maximum of $145 million, corresponding to a price-to-earnings (PE) ratio of approximately 8x for 2023 [1]. - The target company achieved a revenue of $91 million in 2023, reflecting a year-on-year growth of 7%, and a net profit of $18 million, which is a 50% increase year-on-year [1]. - The company plans to increase its dividend payout ratio, with projected dividend yields of 5.3%, 6.7%, and 8.3% for the years 2024 to 2026, respectively [2]. - The company is expected to see significant profit contributions from its stake in the subsidiary, with projected net profits of 3.367 billion, 3.874 billion, and 4.356 billion yuan for 2024 to 2026, respectively [2]. Financial Summary - Revenue for 2023 was 45.799 billion yuan, with a projected increase to 51.422 billion yuan in 2024, representing a year-on-year growth rate of 12.3% [3]. - The net profit for 2023 was 2.916 billion yuan, with expectations of 3.367 billion yuan in 2024, indicating a growth rate of 15.5% [3]. - The earnings per share (EPS) for 2023 was 1.10 yuan, projected to rise to 1.27 yuan in 2024 [3]. - The company’s return on equity (ROE) is expected to remain stable, with projections of 15.8% in 2024 and 15.9% in 2025 [3]. - The price-to-earnings (P/E) ratio is projected to decrease from 8.7 in 2023 to 7.5 in 2024, indicating a potentially attractive valuation [3].