Sinoma-int(600970) 东方证券·2024-10-22 13:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.64 CNY per share, based on a 12X PE for 2024 [2][4][5] Core Views - The company has signed new orders totaling 52.8 billion CNY in the first three quarters of 2024, representing a 1% year-on-year increase, with a significant 35% increase in the third quarter alone [1] - The company's overseas business continues to grow, with foreign orders reaching 30.2 billion CNY, up 6% year-on-year, while domestic orders decreased by 5% to 22.6 billion CNY due to a downturn in the domestic cement industry [1] - The company has a solid financial foundation, with a backlog of contracts amounting to 62.1 billion CNY, a 4.8% increase year-on-year, and plans to maintain a cash dividend payout ratio of no less than 40% over the next three years [1] Summary by Sections Order Growth - In the first nine months of 2024, the company’s engineering service orders were 33.6 billion CNY, down 6%, while high-end equipment manufacturing orders were 5 billion CNY, down 7%. However, operational service orders surged by 36% to 13.1 billion CNY [1] - The mining operation service orders increased by 45% to 8.2 billion CNY, indicating a strong growth area for the company [1] Financial Performance - The company forecasts net profits attributable to shareholders of 3.23 billion CNY, 3.56 billion CNY, and 3.83 billion CNY for 2024, 2025, and 2026 respectively, reflecting a positive growth trend [2][5] - Revenue is projected to grow from 45.8 billion CNY in 2023 to 50.6 billion CNY in 2024, with a year-on-year growth rate of 10.6% [3][5] Valuation and Comparables - The report uses relative valuation methods, comparing the company with peers in the engineering construction sector, and notes that the average adjusted PE for comparable companies is 12X [5] - The company is positioned as a leading global provider of cement engineering services, benefiting from synergies with high-quality asset injections and the prospects of carbon neutrality and smart manufacturing [5]