北方20240717

Summary of the Conference Call for Northern International Company Overview - Northern International is a state-controlled company under the Armament Group, with over 20 years of experience as a publicly listed entity. The company has historically focused on international engineering business but is currently undergoing a transformation and upgrade, which is beginning to yield results in 2022 and 2023 [2][10]. Key Projects and Developments Mongolia Project - The Mongolia project involves a comprehensive arrangement from mining to transportation, customs clearance, and domestic sales. This project has been operational since 2019 or 2018 and has started generating significant revenue post-pandemic [2][3]. - A three-year mining agreement with TT Mine was renewed in June 2023, with a total value of $640 million. Northern International's wholly-owned subsidiary, Beishan Company, is responsible for providing mining services under this agreement [3][19]. - The trade segment, primarily focused on coking coal, has shown growth compared to the previous year, with expectations for continued growth in 2024 [12][14]. Croatia Wind Power Project - The wind power project in Croatia was completed in 2022 and has been generating considerable revenue. The project is currently stable, although it is affected by fluctuations in wind and electricity prices. The average electricity price is expected to be around €0.10 per kWh for the year [7][31]. Laos and Bangladesh Projects - The Laos South Pai Hydropower Station has been operating smoothly since its completion in 2017. The Bangladesh coal-fired power plant project, with a total investment of$2.5 billion, is expected to complete its EPC construction in 2024 and enter the operational phase [8][9]. EPC Business Expansion - The international engineering business is expanding positively, with new contracts signed in Uzbekistan and Southeast Asia, including photovoltaic projects and transmission stations [9][10]. Financial Performance - The integrated business model in Mongolia generated over ¥7 billion in revenue last year, accounting for one-third of the company's total revenue and over half of its profits [6][10]. - The trading volume for the first half of 2024 is projected to reach 2 to 3 million tons, with expectations for steady growth in future years [16][18]. Market and Political Environment - The company views its relationship with Mongolia as stable and beneficial for long-term strategic development, despite the country's internal political fluctuations. The cooperation with China is seen as crucial for Mongolia's economic development [28][30]. Future Outlook - Northern International aims to continue expanding its international engineering and investment operations, focusing on renewable energy and resource acquisition. The company is exploring various business models for resource acquisition, including service agreements and joint ventures [48][57]. - The company is also looking to enhance its asset securitization rate and improve its financial performance metrics, with expectations for double-digit growth in profits [60][63]. Additional Insights - The company emphasizes its unique position as the only publicly listed entity under the Armament Group, which provides it with significant advantages in international markets [47][51]. - The management is optimistic about the future, citing a strong pipeline of projects and a commitment to sustainable growth in the renewable energy sector [39][40].