Sinoma-int(600970) Tianfeng Securities·2025-04-24 04:43Investment Rating - The investment rating for the company is "Buy" with a target price not specified [8][19]. Core Views - The company has maintained stable operations, with a slight decline in revenue but an increase in net profit due to non-recurring gains [1]. - The company has experienced significant growth in new orders, particularly in overseas markets, indicating a continuation of high demand [2]. - The company is expected to benefit from its long-term strategy of deepening its global market presence and diversifying its business operations [4]. Financial Performance - In Q1 2025, the company achieved revenue of 10.15 billion, a year-on-year decrease of 1.37%, while net profit attributable to shareholders was 663 million, an increase of 4.2% [1]. - The gross margin for Q1 2025 was 17%, down 2.51 percentage points year-on-year, while the net profit margin increased by 0.35 percentage points to 6.99% [3]. - The company signed new orders worth 27.88 billion in Q1 2025, representing a year-on-year increase of 31% [2]. Order Growth - The company’s new orders in Q1 2025 included 20.84 billion from engineering services, 2.88 billion from high-end equipment manufacturing, and 3.78 billion from operational services, with respective year-on-year growth rates of 43%, 65%, and a decline of 16% [2]. - Overseas orders accounted for 74.82% of total new orders, with a year-on-year growth of 46%, highlighting the company's strong international presence [2]. Future Outlook - The company is expected to achieve net profits of 3.12 billion, 3.32 billion, and 3.58 billion for the years 2025 to 2027, with corresponding price-to-earnings ratios of 8, 7.5, and 7 times [4]. - The company plans to leverage the Belt and Road Initiative and focus on emerging markets for urbanization and industrialization needs, particularly in the Middle East, Africa, and Southeast Asia [4].