Sinoma-int(SH:600970) Minsheng Securities·2024-03-26 16:00Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 10.89 CNY [4]. Core Views - The company's 2023 annual performance met expectations, with revenue of 45.799 billion CNY, a year-on-year increase of 6.94%, and a net profit attributable to shareholders of 2.916 billion CNY, up 14.74% year-on-year [1]. - The company is expected to see significant growth in overseas orders, which increased by 55% year-on-year, primarily driven by contributions from the Middle East and Africa [2]. - The company plans to increase its dividend payout ratio to no less than 40% from 2024 to 2026, with a 2023 dividend of 1.057 billion CNY, representing a payout ratio of 36.2% [3]. Financial Performance - In Q4 2023, the company achieved revenue of 14.289 billion CNY and a net profit of 0.914 billion CNY, with a gross margin of 21.22% [1]. - The gross margin for the entire year was 19.43%, an increase of 2.46 percentage points year-on-year, while the net profit margin was 6.96%, up 0.95 percentage points year-on-year [1]. - The company reported a cash collection ratio of 0.82 for 2023, compared to 0.84 in 2022 [3]. Business Segments - Revenue from engineering, equipment, and operation maintenance segments for 2023 was 26.67 billion CNY, 7.18 billion CNY, and 10.60 billion CNY, respectively, with year-on-year growth rates of 8%, 2%, and 14% [3]. - The overseas revenue contribution from the equipment segment increased to 25%, while the operation maintenance segment achieved a 25% increase in mining supply volume [3]. - The company secured new contracts worth 39.07 billion CNY in engineering, 7.41 billion CNY in equipment manufacturing, and 13.59 billion CNY in operation maintenance, reflecting year-on-year growth of 21%, 14%, and 14%, respectively [3].