Sinoma-int(SH:600970)2024-10-30 10:10Investment Rating - The report assigns an "Outperform" rating to the company with a target price of RMB 14.04 [2][6][14] Core Insights - The company achieved revenue of RMB 31.73 billion in the first three quarters of 2024, a year-on-year increase of 0.70%, and a net profit attributable to shareholders of RMB 2.06 billion, up 2.90% year-on-year [3][11] - The company experienced a decline in Q3 revenue and recurring net profit attributable to shareholders, with Q3 revenue down 1.13% year-on-year and recurring net profit down 5.05% year-on-year [3][11] - The gross profit margin for the first three quarters of 2024 increased by 0.24 percentage points to 18.86%, while the net profit margin slightly decreased by 0.03 percentage points to 6.85% [4][12] - The company signed new orders worth RMB 52.79 billion in the first three quarters, a 1% year-on-year increase, with Q3 alone seeing a 35% year-on-year increase in new orders [5][13] - The company has a backlog of RMB 62.06 billion as of Q3 2024, which is 1.35 times the revenue of 2023, indicating a strong order reserve [5][13] Financial Summary - The company’s projected earnings per share (EPS) for 2024 and 2025 are RMB 1.18 and RMB 1.28 respectively, with a target price based on a 11x PE ratio for 2025 [6][14] - The company’s revenue is expected to grow from RMB 45.8 billion in 2023 to RMB 52.2 billion in 2025, reflecting a compound annual growth rate (CAGR) of approximately 6.9% [6][8] - The net profit is projected to increase from RMB 2.92 billion in 2023 to RMB 3.74 billion in 2026, with a year-on-year growth rate of 10.9% in 2026 [6][10]