Sinoma-int(SH:600970) Soochow Securities·2024-08-27 00:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a total revenue of 20.895 billion yuan in the first half of 2024, a year-on-year increase of 1.7%, and a net profit attributable to shareholders of 1.399 billion yuan, up 2.3% year-on-year [10] - The revenue structure is shifting, with significant growth in the operation and maintenance segment, while the equipment segment faced challenges due to losses in the domestic cement industry [11][12] - The company is accelerating its transformation towards service-oriented operations, with notable growth in mining and cement maintenance services [11] - The gross margin improved to 19.4%, reflecting a 1.0 percentage point increase year-on-year, with operational cash flow showing significant improvement [13][14] - The company plans to increase cash dividends to shareholders, with a proposed payout ratio of at least 44%, 48.4%, and 53.24% for 2024 to 2026 [14] Summary by Sections 1. Event - The company disclosed its mid-year report for 2024, achieving a total revenue of 20.895 billion yuan and a net profit of 1.399 billion yuan in the first half [10] 2. Commentary - Revenue remained stable with a shift in business structure, where engineering, equipment, and operation segments generated revenues of 12.099 billion, 2.916 billion, and 5.673 billion yuan respectively [11] - Domestic revenue was impacted by losses in the cement industry, while international engineering orders continued to grow [11] - The company is enhancing its service offerings, with significant growth in maintenance services [11] 3. Earnings Forecast and Investment Rating - The company is positioned to leverage its advantages in the cement engineering industry, with adjusted earnings forecasts for 2024-2026 at 3.26 billion, 3.68 billion, and 4.19 billion yuan respectively [15] - The corresponding P/E ratios are projected at 8, 7, and 6 times [15]