Investment Rating - The report maintains an "OUTPERFORM" rating for Morimatsu International Holdings, with a target price of HKD 6.96, reflecting a potential upside from the current price of HKD 4.67 [2][20]. Core Insights - The company's FY24 revenue was CNY 6.95 billion, a decrease of 5.6% year-on-year, primarily due to delays in project execution. However, the gross profit margin improved to 29.5%, up 1.6 percentage points year-on-year, attributed to better operational efficiency and material cost control [3][4][16]. - The net profit attributable to shareholders for FY24 was CNY 737 million, down 12.7% year-on-year, mainly impacted by accounts receivable impairment [17][20]. - The company’s backlog at the end of FY24 was CNY 8.1 billion, down from CNY 8.8 billion at the end of 1H24, with new orders for FY24 totaling CNY 6.0 billion, reflecting a shift in project execution practices [5][18][20]. - Overseas revenue accounted for 60.4% of total revenue in FY24, with 70.6% of new orders being export orders, indicating stable international demand [6][19]. Financial Summary - Revenue projections for FY25 and FY26 have been revised down to CNY 7.77 billion and CNY 8.47 billion, respectively, with expected growth rates of 11.8% and 9.1% [8][20]. - The net profit forecasts for FY25 and FY26 have also been adjusted to CNY 872 million and CNY 939 million, suggesting growth rates of 18.3% and 7.7% [8][20]. - The report utilizes a discounted cash flow (DCF) model for valuation, maintaining a WACC of 10.6% and a perpetual growth rate of 2.5% [8][20].
森松国际：2024年业绩：利润略低于预期；持续追踪订单恢复情况-20250409