北方国际20260324

Summary of North International's Conference Call Company Overview - Company: North International - Industry: Coal, Power Generation, International Engineering Key Points Coal Business - Historical gross margin contribution from coal business reached 46%, but dropped to 2% by mid-2025 due to price fluctuations [2][3] - Recent recovery in coking coal prices from 1,100 RMB/ton to 1,290 RMB/ton (+17%) indicates significant performance elasticity potential [2][3] Power Generation Operations - Driven by European energy prices, Croatian benchmark electricity price surged from 8.7 Euro cents/kWh to 15.5 Euro cents/kWh (+78%) within a month, boosting the gross margin contribution to 26% [2][4] - A large coal-fired power plant in Bangladesh has its first unit connected to the grid, with the second unit expected to be operational by the end of 2026, contributing to the core growth of the power segment [2][4] International Engineering Business - Gross margin contribution from international engineering business stands at 61%, focusing on energy and power construction in the Middle East and under the Belt and Road Initiative [2][5] - Recent projects include a $280 million metro project in Egypt and high-end oilfield construction projects in the UAE [2][5] Synergy with Major Shareholder - Close collaboration with major shareholder North Industries, obtaining a permit for the Lamika integrated project in the Democratic Republic of Congo, enhancing the synergy between mining and power operations [2][3] Financial Projections - Expected EPS for 2026 is 0.75 RMB, corresponding to a PE ratio of approximately 16 times; the recent placement price was 10.66 RMB, with a lock-up period expected to end around mid-2026 [2][6] - Current valuation does not fully account for the elasticity from rising energy prices [2][6] Additional Insights - The international engineering business has a strong presence in the Middle East, with significant projects in energy and power sectors [2][5] - The company has faced challenges in executing projects in Iran due to sanctions, which may present future business opportunities [2][5]