SUMEC(600710) 民生证券·2024-08-02 07:00Investment Rating - The report gives a "Recommend" rating for the company, with an initial coverage [1][3] Core Views - The company's main business includes two major sectors: the industrial chain sector and the supply chain sector The industrial chain sector achieved revenue of 31 318 billion yuan in 2023, with a 3-year CAGR of 8 75%, and a profit of 2 505 billion yuan, with a 3-year CAGR of 24 26% [1] - The company's "dual circulation" strategy has shown significant results, with a focus on both domestic and international markets, reducing reliance on a single market The company has completed over 50 projects in more than 20 countries along the "Belt and Road" initiative [1] - The company has a strong shareholder background, with the largest shareholder being the state-owned China National Machinery Industry Corporation (Sinomach), which provides extensive overseas operational experience and channel resources [1] - The company has a high and stable dividend payout ratio, with the dividend rate increasing from 30 23% in 2019 to 41 88% in 2023, and the dividend yield rising from 1 84% to 4 65% over the same period [1] - The company is expected to achieve net profits attributable to the parent company of 1 082 billion yuan, 1 132 billion yuan, and 1 174 billion yuan in 2024, 2025, and 2026, respectively, with year-on-year growth rates of 5 1%, 4 6%, and 3 7% [1] Business Overview - The company's industrial chain sector includes three main businesses: environmental protection (clean energy, ecological protection), advanced manufacturing (outdoor power tools, diesel generator sets, shipbuilding and shipping), and consumer goods (clothing, home textiles, school uniforms) [1] - The supply chain sector focuses on high-margin products such as petrochemicals, with the petrochemical sector's operating volume increasing by 146% year-on-year in 2023 [1] - The company has a diversified market structure, with significant contributions from both domestic and international markets The domestic market accounted for 57 16% of revenue in 2023, while the international market accounted for 42 62% [24][25] Financial Performance - The company's revenue in 2023 was 122 981 billion yuan, with a year-on-year decrease of 12 9%, while net profit attributable to the parent company was 1 030 billion yuan, with a year-on-year increase of 12 8% [2] - The company's revenue from the supply chain sector was 913 93 billion yuan in 2023, accounting for 74 32% of total revenue, while the industrial chain sector contributed 313 18 billion yuan, accounting for 25 68% [23] - The company's gross profit margin and net profit margin remained stable, with gross profit margin at 5 69% and net profit margin at 2 52% in 2023 [30][31] Advanced Manufacturing Sector - The advanced manufacturing sector includes outdoor power equipment, diesel generator sets, and shipbuilding and shipping The outdoor power equipment business achieved revenue of 3 468 billion yuan in 2023, with a gross profit margin of 21 37% [39] - The diesel generator set business achieved revenue of 1 126 billion yuan in 2023, with a year-on-year increase of 88 79%, and a gross profit margin of 12 43% [42][43] - The shipbuilding and shipping business achieved revenue of 4 44 billion yuan in 2023, with a year-on-year increase of 21 74%, and a gross profit margin of 9 94% [44][45] Consumer Goods Sector - The consumer goods sector includes clothing, home textiles, and branded school uniforms The clothing business achieved revenue of 6 74 billion yuan in 2023, with a gross profit margin of 16 20% [48] - The home textiles business achieved revenue of 3 225 billion yuan in 2023, with a year-on-year increase of 15 35%, and a gross profit margin of 23 3% [49][50] - The branded school uniform business achieved revenue of 1 109 billion yuan in 2023, with a year-on-year increase of 16 94%, and a gross profit margin of 34 43% [50][51] Environmental Protection Sector - The environmental protection sector includes clean energy (photovoltaic products, engineering construction, operation and maintenance) and ecological protection (sewage treatment, garbage treatment, soil remediation, etc ) The clean energy business achieved revenue of 7 5 billion yuan in 2023, with a gross profit margin of 15 5% [52][53] - The ecological protection business achieved revenue of 2 2 billion yuan in 2023, with a year-on-year increase of 28%, and a gross profit margin of 15% [53][54] Supply Chain Sector - The supply chain sector includes bulk commodity operations and mechanical and electrical equipment imports The bulk commodity business achieved revenue of 913 93 billion yuan in 2023, with a year-on-year decrease of 17 41%, and a gross profit margin of 1 96% [62] - The mechanical and electrical equipment import business focuses on textile production equipment, mechanical processing equipment, and other high-end equipment, with a comprehensive service model that includes technology introduction, resource supply, product distribution, and logistics services [63][64]