董事会提议提高分红比例，高比例现金分红重视股东回报根据公司发布的《关于2024 年度"提质增效重回报"行动方案的公告》，公司分红有望持续提升，董事会建议未来三年（2024 年-2026 年），在保证公司能够持续经营和长期发展的前提下，如公司无重大投资计划或重大现金支出等事项发生，公司在足额提取法定公积金、任意公积金以后，公司每年以现金方式分配的利润，在现有不低于当年实现的可供分配利润的40%的基础上，每年现金分红比例同比增长不低于10%，即2024 年-2026年度以现金方式分配的利润分别不低于当年实现的可供分配利润的44%、48.40%、53.24%。若按照24 年12.6%的归母净利润增速以及44%的分红比例预测，根据最新收盘价，24 年股息率或有望达5.72%，高比例现金分红提升投资回报率。Sinoma Cement plans to acquire CJO and its GJO company to promote the international layout of the cement business
The company announced the foreign investment (overseas) of an important shareholding company. Sinoma Cement, an important shareholding company of Sinoma International, plans to establish an SPV company in the UAE through its wholly-owned subsidiary Sinoma Cement (Hong Kong) Investment Co., Ltd., to acquire 100% of the shares of Tunisian CJO and its GJO company, with the UAE SPV company as the main body. The transaction was based on $0.13 billion, up to a maximum of $0.145 billion. Sinoma Cement signed a share purchase agreement with the counterparty on July 26.
CJO and its holding subsidiary GJO are mainly engaged in the production of cement and aggregates. In 2023, CJO's total assets were 0.102 billion US dollars, and the revenue/profit after tax was 0.091 billion and 0.018 billion US dollars respectively, +7% and +50% year-on-year respectively. Sinoma Cement's acquisition is in line with the Group's international development plan. The target company has a long business history, stable operation, and an excellent location close to the port, which will help Sinoma Cement expand its asset scale, enhance future profitability, and promote the international layout of the cement business.
The board of directors proposed increasing the dividend ratio. The high percentage of cash dividends emphasizes shareholder returns According to the “Notice on the 2024 “Improving Quality, Efficiency, and Heavy Return” action plan issued by the company, the company's dividends are expected to continue to increase. The board of directors suggests that in the next three years (2024-2026), on the premise that the company can continue to operate and develop for a long time, if the company has no major investment plans or major cash expenses, etc., the company distributes the profit in cash every year after fully withdrawing the statutory provident fund or any provident fund. On the basis of 40% of distributed profits, the annual cash dividend ratio increased by no less than 10%, that is, profits distributed in cash from 2024 to 2026 were not less than 44%, 48.40%, and 53.24% of the distributable profits achieved in that year, respectively. According to the net profit growth rate of 12.6% and the dividend ratio forecast of 44% in 24, according to the latest closing price, the dividend rate for 24 may be expected to reach 5.72%, and a high percentage of cash dividends will increase the return on investment.
Adequate growth in on-hand orders can be expected. Operation and maintenance orders achieved rapid growth. The company released operating data for the second quarter. 24H1 new orders were 37.09 billion, compared to -9%; Q2 new orders were 15.87 billion, -16% compared to the same period. Engineering technology services/equipment manufacturing/operation and maintenance businesses were -26%, -28%, and +38%, respectively. The decline in Q2 orders in a single quarter was mainly due to a decline in engineering and equipment business orders. Overseas business fell 30% year-on-year from last year's high base, and the company's uncompleted contract amount was 59.24 billion, +6.9% year over year. We think we can expect future growth with sufficient orders on hand.
Deeply cultivate overseas, focus on the main business, and maintain a “buy” rating
The company continues to focus on its main business, strengthen overseas market development and lean management, and continue to consolidate its leading edge in the industry; deepen the “two external services” expansion of high-end equipment, accelerate the construction of a globally unified operation and maintenance service platform; accelerate digital intelligence transformation, build smart factory product systems and overall solutions, and create more agile and efficient product delivery and service capabilities. We expect the company to achieve net profit of 3.28, 3.79, and 4.38 billion in 24-26. Approval will give the company 12 times PE in 24 years, and the corresponding target price is 14.9 yuan.
Risk warning: There is still some uncertainty about whether the transaction can be completed and whether the dividend ratio can be increased; overseas business risks; operation, maintenance and equipment business growth falls short of expectations, order conversion falls short of expectations; operating data is preliminary statistics, which is different from the data disclosed in regular reports.
