Sinoma-int(SH:600970) China Securities·2025-03-28 11:46Investment Rating - The report maintains a "Buy" rating with a target price of 14.27 yuan, unchanged from previous assessments [11][12]. Core Insights - The company achieved a revenue of 46.13 billion yuan in 2024, representing a year-on-year growth of 0.7%, and a net profit attributable to shareholders of 2.98 billion yuan, up 2.3% year-on-year [1][3]. - Operating cash flow showed a net inflow of 2.29 billion yuan, marking the second-highest level in six years, with a net cash ratio of 0.8 [1][3][20]. - The international business and operation maintenance (OM) services contributed significantly to revenue growth, with overseas revenue increasing by 10.9% and OM business contracts growing by 27% [1][4]. Summary by Sections Financial Performance - Revenue for 2024 was 46.13 billion yuan, with a 0.7% increase year-on-year. The net profit was 2.98 billion yuan, reflecting a 2.3% growth, driven by a 0.2 percentage point increase in gross margin to 19.3% and a reduction in impairment losses [3][12]. - The company’s expense ratio increased by 0.2 percentage points to 10.8% due to higher management costs [3]. Internationalization and Contract Growth - The company’s international revenue grew by 10.9%, with overseas revenue and gross margin accounting for 48.4% and 56.7% respectively [4]. - New contract signings totaled 63.44 billion yuan, a 3% increase year-on-year, with significant growth in OM services and overseas equipment contracts [4][23]. Market Outlook - The inclusion of the cement industry in the national carbon emissions trading market is expected to drive domestic business recovery, promoting green and intelligent upgrades in production lines [11][12]. - The report forecasts EPS for 2025-2027 to be 1.19, 1.27, and 1.37 yuan respectively, indicating a stable growth trajectory [11][12].