Sinoma-int(SH:600970) CHINA DRAGON SECURITIES·2024-03-27 16:00Investment Rating - The investment rating for the company is "Buy" [4][5]. Core Views - The company has shown resilience in its engineering services, with significant growth in new orders and revenue, particularly from overseas markets [4][5]. - The company is transitioning its business structure, with equipment manufacturing and operational services expected to see robust growth in the coming years [4][5]. - The company has a strong focus on technological development and reform to enhance governance and operational efficiency [4][5]. Financial Performance - In 2023, the company achieved a revenue of 45.799 billion yuan, representing a year-on-year growth of 6.94%, and a net profit attributable to shareholders of 2.916 billion yuan, up 14.74% year-on-year [4][6]. - The engineering services segment generated revenue of 26.665 billion yuan, with a gross margin of 15.73%, reflecting a year-on-year increase of 7.55% in revenue and a 3.47 percentage point increase in gross margin [4][6]. - The company has a dividend payout ratio of approximately 36% for 2023 [4]. Future Projections - Revenue projections for 2024, 2025, and 2026 are 52.663 billion yuan, 60.202 billion yuan, and 68.878 billion yuan, respectively, with corresponding net profits of 3.348 billion yuan, 3.856 billion yuan, and 4.520 billion yuan [5][6]. - The expected growth rates for revenue are 14.99% in 2024, 14.31% in 2025, and 14.41% in 2026 [6][7]. - The company is anticipated to maintain a price-to-earnings (P/E) ratio of 8.6 in 2024, decreasing to 6.37 by 2026 [5][6].