NORINCO International(SZ:000065) Haitong Securities·2024-08-23 08:49Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company achieved a revenue of 10.415 billion yuan in H1 2024, a year-on-year increase of 0.12%, and a net profit attributable to the parent company of 539 million yuan, up 7.38% year-on-year [5] - The company is undergoing a transformation towards an integrated investment and operation model, which is expected to enhance future performance [5] - The company signed new contracts worth 727 million USD in H1 2024, a decrease of 64.17% year-on-year [5] Financial Performance Summary - In H1 2024, the company's revenue from various segments included: - Goods trade: 5.422 billion yuan, down 6.23% - International engineering contracting: 3.555 billion yuan, up 10.06% - Metal packaging container sales: 625 million yuan, up 16.87% - Freight forwarding: 298 million yuan, down 25.32% - Power generation: 209 million yuan, down 23.82% - Domestic construction engineering: 148 million yuan, up 124.24% - Operation maintenance: 42 million yuan, up 3.74% - Other businesses: 116 million yuan, up 53.51% [5] - The company reported a gross margin of 10.09%, an increase of 0.80 percentage points year-on-year [5] - The net profit margin improved to 5.55%, up 0.49 percentage points year-on-year [5] Future Earnings Forecast - The company is projected to achieve revenues of 21.488 billion yuan in 2023, 23.212 billion yuan in 2024, and 24.429 billion yuan in 2025, with year-on-year growth rates of 60.0%, 8.0%, and 5.2% respectively [6][7] - The net profit is expected to reach 1.019 billion yuan in 2024 and 1.223 billion yuan in 2025, with corresponding year-on-year growth rates of 11.0% and 20.0% [6][7] - The estimated EPS for 2024 and 2025 is projected to be 1.02 yuan and 1.22 yuan respectively [6][7] Investment Recommendation - The company is positioned as an international platform for civilian products under the Weapon Group, with a focus on integrated investment and operation, suggesting promising future performance [5] - The reasonable valuation range for the company is estimated to be between 13.22 yuan and 14.24 yuan based on a P/E ratio of 13-14 times for 2024 [5]