Sinoma-int(SH:600970) Tianfeng Securities·2024-07-28 08:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.9 CNY, indicating an expected return of over 20% within the next six months [6][15]. Core Insights - The company is pursuing international expansion by acquiring Tunisian companies CJO and GJO, which will enhance its cement business and align with its international development strategy [1]. - The board has proposed to increase the cash dividend payout ratio, aiming for a minimum of 40% of distributable profits, with annual increases of at least 10% over the next three years [2]. - The company has a strong order backlog, with a total uncompleted contract amount of 59.24 billion CNY, indicating potential for future growth despite a decline in new orders in Q2 [3][4]. Summary by Sections Acquisition and International Expansion - The company plans to acquire 100% of CJO and its subsidiary GJO for a base price of 130 million USD, with a maximum of 145 million USD, to enhance its international presence in the cement industry [1]. - CJO reported total assets of 102 million USD and revenues of 91 million USD in 2023, with a year-on-year revenue growth of 7% and a profit increase of 50% [1]. Dividend Policy - The board's proposal suggests that from 2024 to 2026, the cash dividend payout will increase annually, starting from 44% of distributable profits in 2024, reaching 53.24% by 2026 [2]. - Based on a projected net profit growth of 12.6% in 2024, the expected dividend yield could reach 5.72% [2]. Financial Performance and Projections - The company expects to achieve net profits of 3.28 billion CNY, 3.79 billion CNY, and 4.38 billion CNY for 2024, 2025, and 2026 respectively, with corresponding growth rates of 12.63%, 15.46%, and 15.57% [4][5]. - Revenue projections for 2024, 2025, and 2026 are 52.73 billion CNY, 60.01 billion CNY, and 67.79 billion CNY, reflecting growth rates of 15.14%, 13.80%, and 12.97% [5][11]. Market Position and Strategy - The company is focusing on its core business while expanding into overseas markets and enhancing operational efficiency [4]. - It aims to build a global unified operation and maintenance service platform, accelerating its digital transformation [4].