Sinoma-int(600970) 华龙证券·2024-11-09 08:37Investment Rating - The investment rating for the company is "Buy" [3]. Core Views - The company's third-quarter performance shows resilience, with stable revenue and profit growth despite a challenging domestic cement market. The company achieved a slight revenue increase of 0.7% year-on-year, totaling 31.731 billion yuan, and a net profit of 2.06 billion yuan, reflecting a 2.9% year-on-year growth [1][3]. - New orders in engineering services rebounded significantly, with a year-on-year increase of 309% in new signed orders for engineering technology services. The new orders for high-end equipment manufacturing and production operation services also maintained growth, with increases of 16% and 27% respectively [3]. Financial Performance Summary - For the first three quarters of 2024, the company reported: - Revenue: 31.731 billion yuan, up 0.7% year-on-year - Net profit attributable to shareholders: 2.06 billion yuan, up 2.9% year-on-year [1]. - The company’s earnings forecast for 2024-2026 has been adjusted to 3.171 billion yuan, 3.329 billion yuan, and 3.833 billion yuan respectively, with corresponding P/E ratios of 8.6x, 8.2x, and 7.1x [2][4]. - The company’s operating cash flow has increased, although cash outflows from operating activities have also risen due to the poor performance of cement enterprises [3]. Comparable Company Analysis - The company is compared with similar firms such as China Chemical, China Steel International, and China National Machinery, which have shown stable main business operations and growth potential in maintenance services [2][5]. - The average P/E ratio for comparable companies is higher than that of the company, indicating a potential undervaluation [5]. Financial Projections - Projected revenue growth rates for the next few years are as follows: - 2024E: 49.371 billion yuan (7.80% growth) - 2025E: 54.629 billion yuan (10.65% growth) - 2026E: 60.344 billion yuan (10.46% growth) [4][6]. - Projected net profit growth rates are: - 2024E: 3.171 billion yuan (8.74% growth) - 2025E: 3.329 billion yuan (4.98% growth) - 2026E: 3.833 billion yuan (15.15% growth) [4][6]. Key Financial Ratios - The company’s projected ROE for 2024 is 14.71%, with a gradual decline expected in subsequent years [7]. - The projected net profit margin for 2024 is 6.83%, indicating stable profitability [7].