Sinoma-int(SH:600970) EBSCN·2024-08-27 05:47Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown steady growth in performance, with its operation and maintenance (O&M) business performing exceptionally well [5][6] - Despite challenges in the domestic cement industry, the company has a robust order backlog and is experiencing rapid growth in its O&M segment [6] Summary by Sections Revenue Performance - In the first half of 2024, the company achieved revenue of 20.9 billion yuan, a year-on-year increase of 1.68% [5] - The second quarter of 2024 saw revenue of 10.6 billion yuan, up 0.68% year-on-year [5] Contract and Order Backlog - The company signed new contracts worth 37.09 billion yuan in the first half of 2024, a decrease of 9% year-on-year, with domestic contracts down by 28% [6] - The O&M segment saw a significant increase in new contracts, with a 41% year-on-year growth [6] Business Segments Performance - Revenue from engineering services, high-end equipment manufacturing, and production operation services in H1 2024 was 12.1 billion, 2.92 billion, and 5.67 billion yuan respectively, with growth rates of 4.8%, -23.1%, and +22.2% [6] - The O&M business generated revenue of 3.595 billion yuan, a year-on-year increase of 27.9% [6] Profitability and Cash Flow - The company's gross margin improved to 19.4% in H1 2024, with a net profit margin of 7.1% [6] - Operating cash flow for H1 2024 was 889 million yuan, an increase of 1.83 billion yuan year-on-year [6] Future Outlook - The company has adjusted its net profit forecasts for 2024-2026 to 3.23 billion, 3.60 billion, and 4.02 billion yuan, reflecting a downward adjustment of 5.6%, 4.8%, and 0.9% respectively [6] - The report emphasizes the potential for further improvement in the business structure due to the strong order backlog and rapid growth in the O&M segment [6]