Sinoma-int(SH:600970) GF SECURITIES·2026-03-29 03:17Investment Rating - The investment rating for the company is "Buy" with a current price of 10.02 CNY and a fair value of 14.17 CNY [3]. Core Insights - The company reported a revenue of 49.6 billion CNY in 2025, representing a year-on-year growth of 7.5%. The net profit attributable to shareholders was 2.86 billion CNY, down 4.1% year-on-year. The fourth quarter of 2025 saw a revenue of 16.6 billion CNY, up 15.3% year-on-year, and a net profit of 788 million CNY, down 14.6% year-on-year. Overall, the performance met expectations [8]. - The company experienced a decrease in expense ratios due to euro exchange gains, leading to stable cash flow. The gross margin for 2025 was 18.5%, down 1.1 percentage points year-on-year, while the net profit margin was 5.8%, down 0.7 percentage points year-on-year. The operating cash flow for 2025 was a net inflow of 1.78 billion CNY, a decrease of 5.1 billion CNY year-on-year, with a dividend payout ratio of 44%, up 4 percentage points year-on-year [8]. - Non-cement engineering became the main growth driver, with engineering business revenue reaching 29.2 billion CNY, up 7.7% year-on-year, and a gross margin of 14.3%, down 1.6 percentage points year-on-year. New contracts signed in engineering totaled 42.7 billion CNY, up 15%, with significant growth in cement technology upgrades and diversified engineering [8]. - The overseas revenue accounted for over 50% for the first time, with overseas revenue of 27.2 billion CNY, up 22% year-on-year, representing 55% of total revenue. Domestic revenue was 22.1 billion CNY, up 6.4% year-on-year, with an improved gross margin of 17.4%, up 1.5 percentage points year-on-year [8]. - Profit forecasts for 2026 to 2028 estimate net profits attributable to shareholders at 3.1 billion CNY, 3.3 billion CNY, and 3.6 billion CNY respectively. The company is assigned a 12x PE for 2026, corresponding to a fair value of 14.17 CNY per share, maintaining a "Buy" rating [8].