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]