Sinoma-int(600970) 民生证券·2024-10-09 11:09Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 10.72 CNY [5]. Core Views - The company has signed new contracts worth 528 billion CNY from January to September 2024, showing a year-on-year increase of 1%, with Q3 2024 new contracts at 157 billion CNY, up 35% year-on-year [2][4]. - The company has a robust order backlog, with an uncompleted contract amount of 621 billion CNY as of the end of Q3 2024, representing a 4.75% increase from the previous period [2]. - Domestic performance in Q3 2024 was strong, with domestic new contracts reaching 89.6 billion CNY, a year-on-year increase of 87%, primarily driven by EPC engineering and operation maintenance services [3][4]. - The company continues to diversify its business, with significant growth in operation maintenance services, which saw a 36% increase in new contracts from January to September 2024 [4]. Summary by Sections Financial Forecast and Indicators - The company is projected to achieve net profits of 34.40 billion CNY, 39.24 billion CNY, and 43.57 billion CNY for the years 2024, 2025, and 2026 respectively, with corresponding PE ratios of 8, 7, and 7 [5][8]. - Revenue is expected to grow from 45.8 billion CNY in 2023 to 67.6 billion CNY in 2026, with growth rates of 6.9%, 15.2%, 13.6%, and 12.8% for the respective years [8]. Business Performance - The company’s engineering technical services, high-end equipment manufacturing, and production operation services had new contracts of 336.3 billion CNY, 49.8 billion CNY, and 131.2 billion CNY respectively from January to September 2024, with respective year-on-year changes of -6%, -7%, and +36% [4]. - The company has deepened its localized operations overseas, with over 100 foreign institutions and nearly 2000 foreign employees as of mid-2024 [4]. Investment Recommendations - The report highlights the company's "one core, dual drive" growth strategy, ongoing diversification, and plans to increase dividend rates, alongside capital investment in related subsidiaries [4].