Sinoma-int(SH:600970) GOLDEN SUN SECURITIES·2025-03-26 01:38Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's profitability continues to improve, with a transformation towards operational services accelerating. In 2024, the company achieved a revenue of 46.1 billion, a year-on-year increase of 0.7%, and a net profit attributable to shareholders of 2.98 billion, up 2.3% year-on-year [1][4] - The operational services segment is experiencing rapid growth, with new contracts signed amounting to 17.3 billion, a 27% increase year-on-year. This segment's profit contribution is expected to enhance the overall business model [3][4] Summary by Sections Financial Performance - In 2024, the company reported revenues of 46.1 billion, with a breakdown of 27.1 billion from engineering, 6.2 billion from equipment, and 12.9 billion from operational services. The operational services segment grew by 22% year-on-year [1] - The overall gross margin for the year was 19.63%, an increase of 0.2 percentage points year-on-year, primarily due to improved profitability in overseas operations [2] - The net profit margin for the year was 6.5%, reflecting a slight increase of 0.1 percentage points year-on-year [2] Operational Highlights - The operational services segment has shown significant growth, with a gross profit of 2.8 billion, accounting for 31.1% of the main business gross profit, a substantial increase of 5 percentage points year-on-year [3] - The company is executing 318 mining operational service projects, with a completed supply volume of 680 million tons, marking a 4% increase [3] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 4.50 per 10 shares, totaling 1.19 billion, with a payout ratio of 39.85%, an increase of 3.6 percentage points from the previous year [4] - Expected dividend yields for 2025 and 2026 are projected at 5.3% and 6.3%, respectively, indicating strong attractiveness for investors [4] Future Projections - The company forecasts net profits of 3.2 billion, 3.5 billion, and 3.8 billion for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 8%, 9%, and 7% [4][5] - The earnings per share (EPS) are projected to be 1.22, 1.33, and 1.42 for the same years, with corresponding price-to-earnings (P/E) ratios of 8.3, 7.6, and 7.1 [4][5]