Sinoma-int(SH:600970) Haitong Securities·2024-10-30 08:47Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The report highlights that the company's overseas revenue is rapidly growing, and cash flow has significantly improved [2] - The company achieved a revenue of 31.731 billion yuan in the first three quarters of 2024, a year-on-year increase of 0.70%, and a net profit attributable to shareholders of 2.060 billion yuan, up 2.90% year-on-year [5] - The report emphasizes the strong performance of domestic orders and the high growth in new contracts for operation and maintenance services, indicating a diversification of the business [5] Summary by Sections Financial Performance - In Q3 2024, the company experienced a slight decline in revenue and net profit, with quarterly revenues showing a year-on-year change of +2.47%, +0.68%, and -1.13% for Q1, Q2, and Q3 respectively [5] - The gross profit margin increased by 0.24 percentage points to 18.86%, while the net profit margin slightly decreased by 0.03 percentage points to 6.85% [5] - The company reported a net cash outflow of 260 million yuan, which is an increase of 246 million yuan year-on-year, primarily due to the domestic cement market affecting collection progress [5] Order and Contract Analysis - The company signed new contracts worth 52.788 billion yuan in the first three quarters of 2024, a year-on-year increase of 1%, with Q3 alone contributing 15.699 billion yuan, up 35% year-on-year [5] - The report notes that the domestic orders saw a significant increase, particularly in engineering and operation and maintenance services, which grew by 309% and 41% respectively in Q3 [5] Earnings Forecast and Valuation - The company is expected to have an EPS of 1.18 yuan in 2024 and 1.28 yuan in 2025, with a reasonable valuation range of 12.77 to 14.04 yuan based on a PE ratio of 10-11 times for 2025 [5][6] - The report maintains an "Outperform the Market" rating, citing the company's leading position in cement engineering technology services globally and the ongoing transformation in high-end equipment manufacturing and production operations [5]