Sinoma-int(SH:600970) GOLDEN SUN SECURITIES·2024-10-27 04:12Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's Q3 performance met expectations, with a slight acceleration in revenue growth and improved profitability metrics. The total revenue for Q1-Q3 2024 reached 31.7 billion, a year-on-year increase of 0.7%, while the net profit attributable to shareholders was 2.06 billion, up 2.9% year-on-year [1][2]. - The company has seen significant growth in overseas equipment and operation and maintenance orders, with new orders totaling 52.8 billion in Q1-Q3, a year-on-year increase of 1%. Q3 alone saw new orders of 15.7 billion, a remarkable 35% increase year-on-year [2]. - The report projects net profits for 2024-2026 to be 3.4 billion, 3.6 billion, and 4.0 billion respectively, with corresponding EPS of 1.27, 1.38, and 1.53. The current stock price corresponds to P/E ratios of 8.1, 7.5, and 6.7 for the respective years [2][3]. Financial Performance Summary - For Q1-Q3 2024, the company achieved a gross margin of 18.86%, an increase of 0.24 percentage points year-on-year. The net profit margin for Q1-Q3 was 6.5%, up 0.14 percentage points year-on-year [1]. - The company reported a total revenue of 45.8 billion for 2023, with a projected revenue of 48.2 billion for 2024, reflecting a growth rate of 5.2% [3][10]. - The net profit for 2023 was 2.9 billion, with an expected increase to 3.4 billion in 2024, indicating a growth rate of 15.5% [3][10]. Order and Contract Status - As of the end of Q3 2024, the company had an order backlog of 62.1 billion, which is 1.35 times its revenue for 2023, indicating a robust order reserve [2]. - The report highlights that the company’s engineering services segment saw a decline in new orders, primarily due to low domestic cement capital expenditure, while overseas equipment orders showed strong growth [2].