Sinoma-int(SH:600970) Tianfeng Securities·2024-10-26 12:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months [4][6][14]. Core Views - The company has demonstrated stable revenue and profit growth, with a year-to-date revenue of 31.73 billion and a net profit of 2.06 billion, reflecting year-on-year increases of 0.70% and 2.90% respectively [1]. - The company has seen steady growth in new contracts, with a total of 52.79 billion in new contracts signed in the first three quarters, marking a 1% year-on-year increase, driven by a significant 87% increase in domestic new orders in Q3 [2]. - The gross margin has slightly improved, with a comprehensive gross margin of 18.86% for the first three quarters, while the net profit margin remains stable at 6.85% [3]. Financial Performance Summary - Revenue for 2022 was 38.82 billion, projected to grow to 62.32 billion by 2026, with a compound annual growth rate (CAGR) of approximately 10.31% [5][10]. - The net profit attributable to the parent company is expected to increase from 2.19 billion in 2022 to 4.00 billion in 2026, with a CAGR of 11.74% [5][10]. - The company’s earnings per share (EPS) is projected to rise from 0.83 in 2022 to 1.51 in 2026, indicating strong profitability growth [5][10]. Business Segments - The company operates in three main business segments: engineering technology services, high-end equipment manufacturing, and production operation services, with new contract values of 33.63 billion, 4.99 billion, and 13.12 billion respectively [2]. - The engineering technology services segment has seen a year-on-year decrease of 6%, while the production operation services segment has experienced a significant increase of 36% [2]. Market Position - The company holds the world's leading market share in cement engineering technology services and is well-positioned for growth in the high-end equipment manufacturing sector [4]. - The company’s digital transformation initiatives are expected to enhance operational efficiency and strengthen its core business competitiveness [4].