SINOSTEEL ENTEC(000928) 天风证券·2025-04-24 02:21Investment Rating - The report maintains a "Buy" rating for the company [6][17]. Core Views - The company achieved a revenue of 17.65 billion in 2024, a decrease of 33.1% year-on-year, while the net profit attributable to the parent company increased by 9.7% to 0.835 billion [1]. - The gross profit margin improved significantly, contributing to a notable increase in profitability despite revenue pressure [1][2]. - The company plans to distribute a cash dividend of 0.43 billion in 2024, with a dividend payout ratio of 51%, resulting in a dividend yield of 4.72% [1]. - The company expects net profits for 2025-2027 to be 0.965 billion, 1.115 billion, and 1.279 billion respectively, with corresponding P/E ratios of 9.4, 8.1, and 7.1 [1]. Revenue and Profitability - In Q1 2025, the company reported a revenue of 3.52 billion, down 28.21% year-on-year, but net profit increased by 7.78% to 0.232 billion [1]. - The engineering contracting business saw a gross margin of 13.61%, up 6.06 percentage points year-on-year, which significantly enhanced overall profitability [2]. - The overall gross margin for the year improved by 5.71 percentage points to 14.5% [2]. Order Growth and Internationalization - The company signed new orders worth 19.67 billion in 2024, a year-on-year increase of 2.12%, with international orders growing significantly [3]. - The company has made substantial progress in international projects, particularly in mining and steel production, with several key projects successfully launched [3]. Financial Performance - The company’s cash flow from operations (CFO) for 2024 was 1.5 billion, an increase of 1.36 billion year-on-year, indicating strong cash flow performance [4]. - The net profit margin for 2024 was 4.95%, up 1.91 percentage points year-on-year, while the Q1 2025 net profit margin was 6.82%, up 2.25 percentage points [4]. Financial Data and Valuation - The company’s projected revenue for 2025 is 18.49 billion, with a growth rate of 4.8% [5]. - The earnings per share (EPS) for 2024 is expected to be 0.58, with a P/E ratio of 10.87 [5]. - The total market capitalization is approximately 9.08 billion [7].