Sinoma-int(SH:600970) EBSCN·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for China National Materials International (600970.SH) with a current price of 11.19 CNY [1] Core Views - The company achieved steady revenue growth with a year-on-year increase in revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 6.9%, 14.7%, and 26.8% respectively in 2023 [1] - The company signed new contracts totaling 616.4 billion CNY in 2023, representing an 18% year-on-year increase, driven by a significant rise in overseas contracts [1] - The company plans to distribute a cash dividend of 0.4 CNY per share, yielding approximately 4.3% [1] Summary by Sections Financial Performance - In 2023, the company reported revenues of 458 billion CNY, net profit of 29 billion CNY, and net profit excluding non-recurring items of 27 billion CNY [1] - The fourth quarter of 2023 saw revenues of 143 billion CNY, net profit of 9 billion CNY, and net profit excluding non-recurring items of 7 billion CNY, with year-on-year growth of 11.3%, 34.5%, and 29.1% respectively [1] - The company’s gross profit margin and net profit margin reached 19.4% and 7.0% in 2023, reflecting increases of 2.5 percentage points and 0.9 percentage points respectively [3] Contract and Order Growth - The company’s new contracts in 2023 included 333.1 billion CNY from overseas and 283.4 billion CNY from domestic markets, with year-on-year growth of 55% and a decline of 8% respectively [1] - The total amount of uncompleted contracts at the end of 2023 was 593.3 billion CNY, marking a 12% year-on-year increase, ensuring continued revenue growth [1] Business Development - The company is enhancing its core business advantages and expanding its equipment and operational services, with 20 new project launches in 2023 [1] - The overseas revenue from equipment manufacturing has increased to 25% of total equipment revenue, while revenue from non-cement industries has risen to 32% [1] - The company’s engineering technology services and high-end equipment manufacturing achieved revenues of 266.6 billion CNY and 71.8 billion CNY respectively, with year-on-year growth of 7.6% and 2.0% [1] Profitability and Cash Flow - The company’s operating cash flow improved significantly, reaching 35.4 billion CNY in 2023, a 210% increase year-on-year [1] - The report forecasts net profit attributable to shareholders of 34.2 billion CNY, 37.8 billion CNY, and 40.6 billion CNY for 2024, 2025, and 2026 respectively [2][3]