在手订单丰厚，运维新签合同增长亮眼。受境内受水泥行业产能过剩、水泥产业大面积亏损及有效需求不足的影响，2024H1 公司境内新签合同承压明显，上半年新签合同370.9 亿元，同比下降9%，其中，境外新签合同额/境内新签合同额分别为234.6/136.3 亿元，同比+9%/-28%。分业务看，24H1 公司工程技术服务/装备制造/运维新签合同额为241.5/33.4/88.97 亿元，同比比-18%/-15%/+41%，运维板块新签合同表现亮眼，2024H1 矿山运维/水泥和其他运维合同额分别为55.3 及33.7亿元，同增47%/32%。截至24 年6 月末，公司有效结转合同额592 亿元，同比增长6.89%，丰厚的在手订单保障公司稳健发展。Incidents:
Sinoma International released its 2024 mid-year report. The company's realized revenue/net profit/net profit after deduction of non-net profit in 24 was 20.9/1.4/1.4 billion yuan, respectively, +1.68%/+2.28%/+5.97% compared with the same period last year. 24Q2, the company achieved revenue/net profit/net profit deducted to mother of 10.6/0.8/0.7 billion yuan, respectively, or +0.68%/+1.61%/+0.95% compared with the same period last year. 24H1 domestic/overseas revenue was 11.44/9.35 billion yuan, -7.2%/+15.2% year-on-year.
Comment:
Ongoing orders are plentiful, and the number of new contracts signed for operation and maintenance is growing rapidly. Affected by overcapacity in the cement industry, large-scale losses in the cement industry and insufficient effective demand, 2024H1 signed new domestic contracts were clearly under pressure. New contracts signed in the first half of the year were 37.09 billion yuan, a year-on-year decrease of 9%. Among them, the amount of new contracts signed overseas and the amount of new domestic contracts were 23.46/13.63 billion yuan respectively, +9%/-28% over the same period last year. By business, 24H1's new contract amount for engineering technology services/equipment manufacturing/operation and maintenance was 24.15/3.34/8.897 billion yuan, compared to -18%/-15%/+41% year-on-year. The operation and maintenance sector performed well. 2024H1 mine operation/maintenance/cement and other operation and maintenance contracts were 55.3 and 3.37 billion yuan respectively, an increase of 47%/32%. By the end of June '24, the company had an effective carry-over contract amount of 59.2 billion yuan, an increase of 6.89% over the previous year. Generous on-hand orders ensured the steady development of the company.
The main engineering business grew steadily, and the operation and maintenance business volume increased profits. By business segment, 24H1's engineering technology services/high-end equipment manufacturing/ production and operation services achieved revenue of 12.1/2.92/5.67 billion yuan, +4.8%/-23.1%/+22.2% year-on-year, and gross margins of 15.5%/23.3%/21.9%, respectively, and +0.62/-0.51/+3.18pcts year-on-year. The company's engineering service business progressed steadily. Thirteen projects were started and put into operation in the first half of the year. A new overseas engineering service contract of 19.73 billion yuan was signed, an increase of 4% over the previous year, and 15 complete cement line projects were obtained; the engineering and equipment business synergy mechanism had achieved remarkable results. The self-sufficient rate of the ten types of core mainframe equipment developed by itself exceeded 60%, and the share of overseas and non-equipment revenue increased to 32% and 49%.
The company uses engineering to drive operation and maintenance development, with remarkable results. 24H1 mine operation and maintenance achieved revenue of 3.595 billion yuan, +27.9% year on year, gross profit margin of 16.59%, +3.38 pcts year on year; cement and other operation and maintenance services achieved revenue of 2.08 billion yuan, +13.5% year on year, gross profit margin of 31.2%, +3.9 pcts year over year. By the end of June '24, the company had implemented 348 mine operation and maintenance service projects, including 6 overseas projects; 24H1 completed 0.306 billion tons of mineral supply, +9% over the same period; and implemented 62 cement operation and maintenance service production lines, providing an annual production capacity of more than 0.1 billion tons.
Gross margin increased, and cash flow improved markedly. 24H1's gross sales margin/net margin reached 19.4%/7.1%, respectively, +1.0pcts/-0.05pct; domestic/ overseas business gross margin was 16.3%/22.6%, -1.5/+3.7pcts year-on-year. Due to exchange losses, a sharp increase in the financial expense ratio dragged down the increase in net interest rates. 24H1's sales/management/ financial/ R&D expenses ratio was 1.2%/4.8%/1.1%/3.5%, respectively, -0.1/+0.6/+0.7/-0.3 pct. By strengthening settlement with owners and collection of accounts receivable, the company's 24H1 cash flow improved significantly. 24H1's net operating cash flow was 0.89 billion yuan, an increase of 1.83 billion yuan over the previous year.
Profit forecast, valuation and rating: Considering that the company was affected by exchange gains and losses in the first half of the year and operating pressure due to weak fundamentals in the cement industry, the growth rate of net profit to mother slowed in the first half of the year. We lowered the company's net profit to mother for 24-26 to 32.3/36.0/40.2 yuan (5.6%/4.8%/0.9%, respectively). The company still has plenty of orders in hand, the operation and maintenance business is growing rapidly, and the business structure is expected to improve further, so we maintain the company's “buy” rating.
Risk warning: Geopolitical risks escalate, domestic production line transformation falls short of expectations.
