Sinoma-int(SH:600970) GF SECURITIES·2024-05-09 13:32Investment Rating - The report maintains a "Buy" rating for the company [5]. Core Views - The company is a global leader in cement technology and equipment engineering services, with a robust performance growth forecast. The company's net profit CAGR from 2021 to 2023 is expected to reach 17.4% [2]. - The engineering segment shows significant domestic replacement demand and strong overseas new construction needs, with projected annual market space of 88 billion and 207 billion for domestic replacement and technical transformation respectively from 2024 to 2025 [2]. - The operational maintenance services are expanding in both cement and mining sectors, with a projected annual market size of 400-450 billion for global spare parts and maintenance services over the next five years [2]. - The high-end equipment segment is expected to see a market space of approximately 350-400 billion globally, with the company aiming to enhance its market share following the exit of a major competitor [2]. Summary by Sections Profit Forecast - The company is projected to achieve net profits of 33.8 billion, 38.9 billion, and 44.6 billion from 2024 to 2026, with a total estimated value of 470 billion, corresponding to a fair value of 17.80 yuan per share [3]. Financial Performance - In 2023, the company reported a revenue of 457.99 billion yuan, a year-on-year increase of 6.94%. The engineering services segment contributed 266.65 billion yuan, while equipment manufacturing and operational maintenance services generated 71.76 billion and 106.00 billion yuan respectively [52]. - The company’s gross profit for 2023 was 65.86 billion yuan, with engineering services contributing 41.96 billion yuan, equipment manufacturing 23.10 billion yuan, and operational maintenance services 18.28 billion yuan [56]. Business Structure and Strategy - The company operates under a "one core, dual drive, and three industries" strategy, focusing on engineering technology services, operational maintenance, and high-end equipment manufacturing [47][48]. - The company has made strategic acquisitions to enhance its capabilities in engineering and operational maintenance, including the purchase of Nanjing Kaisheng and Beijing Kaisheng [52]. Market Position - The company holds a leading position in the global cement technology and equipment engineering market, maintaining a market share that has been the highest for 16 consecutive years [39]. - The company is actively expanding its overseas business and digital capabilities, aiming for steady growth in international revenue [47].