Investment Rating - The investment rating for the company is "Buy" with a target price not specified [5] Core Views - The company faced operational pressure in H1 2025 due to declining coking coal prices, but the focus on the coking coal business's elasticity is emphasized under the anti-involution policy [1] - The company achieved revenue of 6.735 billion in H1 2025, a year-on-year decrease of 35.34%, and a net profit attributable to the parent company of 309 million, down 42.71% [1] - The company is expected to benefit from the operational performance of ongoing projects, particularly the Bangladesh coal-fired power plant, which is anticipated to start contributing operational revenue this year [1] - The overall coking coal prices have shown signs of recovery since Q3, which is expected to enhance profit elasticity in the company's coking coal business [1] - The company maintains a positive outlook on its integrated investment and operation business development prospects, forecasting net profits attributable to the parent company of 1.12 billion, 1.24 billion, and 1.4 billion for 2025-2027 [1] Financial Performance Summary - In H1 2025, the revenue from various business segments was as follows: Engineering Construction and Services 3.1 billion, Resource Equipment Supply Chain 2.66 billion, Power Operations 330 million, and Industrial Manufacturing 620 million, with respective year-on-year changes of -24.9%, -50.9%, +55.2%, and -0.9% [2] - The overall gross margin for H1 2025 was 13.09%, an increase of 3 percentage points year-on-year, with Q2 gross margin at 13.15%, up 2.63 percentage points [2] - The company signed new contracts worth 402 million USD in H1 2025, a decrease of 44.76% year-on-year, while efforts to explore emerging markets have yielded breakthroughs in Egypt and the UAE [2] - The company's cash flow from operations (CFO) improved to 147 million in H1 2025, an increase of 531 million year-on-year, primarily due to a reduction in the maturity of large acceptance bills compared to the previous year [3] Financial Data and Valuation - The projected financial data for the company from 2023 to 2027 includes revenue growth rates of 59.96% in 2023, -11.21% in 2024, and positive growth in subsequent years [4] - The estimated net profit attributable to the parent company is forecasted to be 918.06 million in 2023, increasing to 1.399 billion by 2027, with corresponding growth rates of 44.35%, 14.32%, and 12.97% [4] - The company's price-to-earnings (P/E) ratio is projected to decrease from 14.30 in 2023 to 9.38 in 2027, indicating an improving valuation over time [4]

在浙江期间，石拥军拜访某知名房地产开发代建管理公司，详细了解其未来社区和片区综合开发"投建营"一体化模式的先进经验与成功案例，双方就合作 方向深入探讨，达成多项共识。随后，石拥军前往千岛湖水经济产业园，实地考察水饮料、水康养、水文旅融合等项目，重点了解水源地保护、精深加 工、品牌运营及全季旅游联动模式和先进经验，为新区水经济产业发展提供参考。 招商考察期间，石拥军与多家企业负责人开展座谈交流。他表示，漳河新区在区位交通、产业基础、营商环境等方面具有独特优势，经济发展潜力巨大， 并诚挚邀请各企业赴新区回访考察，进一步加强合作。各企业对新区产业发展、营商环境给予了高度评价，均表示将加强沟通，尽快安排回访调研，共同 推动合作项目落地见效。 8月7日，漳河新区党工委副书记、管委会副主任石拥军带队赴上海、浙江招商考察，对接合作事宜，洽谈重点项目。 在上海，石拥军一行先后拜访多家低空经济、食品研发生产等领域的行业标杆企业，详细调研了各企业在相关领域的研发成果、创新技术、产业模式、业 务板块及供应链布局等情况，深入了解企业发展现状与未来规划，为后续合作奠定基础。 ...

Summary of Northern International's Conference Call Company Overview - Northern International has improved its ranking to 66th among the top 250 contractors, indicating enhanced industry status [2][3] - The company adopts an integrated investment, construction, and operation strategy, diversifying its business into goods trade, engineering construction and services, metal packaging containers, and power generation [2][3] Financial Performance - In 2024, revenue contributions from various segments are as follows: goods trade (44%), engineering construction and services (37%), metal packaging containers (2%), and power generation (3%) [4] - Gross profit contributions are: goods trade (44%), engineering construction and services (37%), metal packaging containers (7%), and power generation (11%), with a significant increase in gross profit from goods trade [4] - Cash flow remains strong, with net inflow levels between 650 million to 740 million from 2022 to 2024, although net inflow decreased by 50 million year-on-year in 2024 [5][4] - Total cash dividends for 2024 amount to 160 million, with a dividend payout ratio of 25% [5] Coal Trade Impact - Mongolian coal trade is a crucial revenue source for Northern International, with a 14% year-on-year increase in export volume to 78 million tons in 2024 [2][6] - The company has initiated comprehensive projects in Mongolia, including a 370 million USD heavy-load road project, which is expected to significantly boost coal export volumes [6] - The acquisition of a 60% stake in Inner Mongolia Mandula Mining facilitates the integration of Mongolian coal trade [6] Power Operations Progress - Northern International is transitioning towards an integrated investment and operation model, with multiple power projects in countries along the Belt and Road Initiative [7] - Key projects include: - Laos Sanbai Hydropower (investment of 210 million USD, stable revenue) - Croatia Saini Wind Power (revenue decreased in 2024 due to lower electricity prices) - Bangladesh Rocket Project (expected to commence operations in the first half of 2024, with a total investment of 2.5 billion USD) - Bosnia Herzegovina Komanyesh Mountain Solar Project (investment started in 2024) [7][9] Future Profit Forecast - The engineering construction sector is expected to maintain steady growth, while trade business is projected to achieve higher growth rates [8] - Overall profit is anticipated to grow at around 10% annually, with a forecasted growth rate of 4% for 2025 and over 15% for the following two years [8] - The current valuation is approximately 10 times earnings, making the company an attractive investment opportunity given the progress of the Belt and Road Initiative [8]

Core Viewpoint - North International has received approval from the State-owned Assets Supervision and Administration Commission for a non-public issuance of A-shares, aiming to raise up to 960 million yuan for the construction of a photovoltaic project in Bosnia and Herzegovina and to supplement working capital [1][2]. Group 1: Fundraising and Project Details - The company plans to issue no more than 105 million A-shares, with total fundraising not exceeding 960 million yuan, of which approximately 724 million yuan (75.45% of total funds) will be allocated to the 125MWp photovoltaic project in Bosnia [2][3]. - The project has a total investment of about 755 million yuan and is expected to be completed within 12 months [2]. Group 2: Business Transformation and Performance - North International is actively transforming its business model towards an integrated investment and construction operation, which has led to significant achievements in recent years [1][4]. - The company's revenue has grown from 1.66 billion yuan in 2012 to 19.08 billion yuan in 2024, while net profit increased from 120 million yuan to 1.05 billion yuan during the same period [4]. Group 3: Financial Health and Cost Management - The company's asset-liability ratio has decreased from 65.56% in 2020 to 57.23% in the first quarter of 2025, indicating improved financial health [5]. - In the first quarter of 2025, North International reported a revenue of 3.6496 billion yuan, a decrease of 27.22% year-on-year, but managed to reduce operating costs significantly, resulting in a gross profit margin of 13.03%, up from 9.62% in the previous year [5].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6]. Core Views - The company is expected to continue its profit growth in 2024, with the Bangladesh project entering its operational phase in 2025, driving sustained revenue growth [1]. - In 2024, the company achieved a revenue of 19.08 billion, a year-on-year decrease of 11.21%, while the net profit attributable to the parent company was 1.05 billion, an increase of 14.32% year-on-year [1]. - The company has a strong order backlog, with contracts worth 63.9 billion USD (approximately 459.6 billion CNY) currently in execution, which is about 2.4 times the revenue for the period [2]. - The company’s comprehensive gross margin improved to 12.82% in 2024, up by 2.5 percentage points year-on-year, indicating enhanced profitability [3]. Financial Performance Summary - In 2024, the company reported a revenue of 190.8 billion CNY, with a net profit of 10.5 billion CNY, reflecting a 14.32% increase year-on-year [1]. - The company’s EBITDA for 2024 is projected at 1,964.89 million CNY, with a net profit attributable to the parent company expected to be 1,049.51 million CNY in 2024 [5]. - The company’s cash flow from operations (CFO) for 2024 is 653.35 million CNY, with a cash flow ratio of 104.61%, indicating improved cash management [3]. Business Segment Performance - Revenue from engineering construction and services, resource equipment supply chain, power operation, and industrial manufacturing in 2024 was 83.6 billion, 89.7 billion, 4.4 billion, and 12.4 billion CNY respectively, with notable declines in the first three segments [2]. - The Mongolian integrated mining project saw a 17.6% increase in mining volume, while coal sales decreased by 3.6% year-on-year [2]. - The Croatian wind power project generated 385 million kWh in 2024, a decrease of 16.3% year-on-year, primarily due to adverse weather conditions [2].