SINOMA INTERNATIONAL ENGINEERING(600970):3Q24 RESULTS IN LINE; NEW ORDERS GROW STEADILY
SINOMA INTERNATIONAL ENGINEERING(600970):3Q24 RESULTS IN LINE; NEW ORDERS GROW STEADILY
2) Expense ratio fell, and the pressure of FX loss was effectively controlled. In 3Q24, selling, G&A, R&D, and financial expense ratios were 1.1%, 4.7%, 0.5%, and 3.9% YoY, +0.1ppt, +0.6ppt, -0.2ppt, and - 0.7ppt YoY. The overall expense ratio fell 0.2ppt YoY. Meanwhile, the financial expenses have largely stabilized in the past two quarters, showing that FX losses (depreciation of foreign currencies held) that significantly weighed on profit in 1Q24 were effectively controlled.3Q24 results in line with our expectations
第3季度24財年的業績符合我們的預期
Sinoma International Engineering announced its 1-3Q24 results: Revenue rose 0.7% YoY to Rmb31.73bn and net profit attributable to shareholders grew 2.9% YoY to Rmb2.06bn. In 3Q24, revenue fell 1.1% YoY to Rmb10.84bn and attributable net profit grew 4.2% YoY at Rmb661mn, in line with our expectations.
中材國際工程宣佈其1-3Q24的業績：營業收入同比增長0.7%至317.3億元人民幣，歸屬股東的淨利潤同比增長2.9%至20.6億元人民幣。在3Q24，營業收入同比下降1.1%至108.4億元人民幣，歸屬淨利潤同比增長4.2%至6.61億元人民幣，符合我們的預期。
1) Revenue slowed and GM fell slightly in 3Q24. Revenue fell 1.1% YoY in 3Q24, slightly slower than in 1H24. In 3Q24, GM fell 1.3ppt YoY and 1.5ppt QoQ to 17.8%. We attribute changes in revenue growth and GM to the pace and structure of order booking.
1）營業收入放緩，控件輕微下降。在3Q24，營業收入同比下降1.1%，略低於1H24。在3Q24，控件同比下降1.3個百分點至17.8%。我們將營業收入和控件的變化歸因於訂單預訂的速度和結構。
2) Expense ratio fell, and the pressure of FX loss was effectively controlled. In 3Q24, selling, G&A, R&D, and financial expense ratios were 1.1%, 4.7%, 0.5%, and 3.9% YoY, +0.1ppt, +0.6ppt, -0.2ppt, and - 0.7ppt YoY. The overall expense ratio fell 0.2ppt YoY. Meanwhile, the financial expenses have largely stabilized in the past two quarters, showing that FX losses (depreciation of foreign currencies held) that significantly weighed on profit in 1Q24 were effectively controlled.
2）費用率下降，並且外匯虧損壓力得到有效控制。在3Q24，銷售、管理和行政、研發以及財務費用率分別爲1.1%，4.7%，0.5%和3.9%，同比分別爲+0.1個百分點，+0.6個百分點，-0.2個百分點和-0.7個百分點。整體費用率同比下降0.2個百分點。同時，財務費用在過去兩個季度基本穩定，顯示在1Q24中顯著拖累利潤的外匯虧損（持有的外幣折舊）得到了有效控制。
3) Net investment income expanded YoY. The investment income rose Rmb63.65mn YoY to about Rmb13mn in 3Q24 and rose Rmb70.95mn YoY to Rmb37.77mn in 1-3Q24.
3）淨投資收益同比擴大。投資收益在3Q24同比上升6365萬人民幣，約爲1300萬人民幣，並在1-3Q24同比上升7095萬人民幣至3777萬人民幣。
4) The effective tax rate has increased and the proportion of minority interest income has decreased.In 3Q24, the firm's effective tax rate rose 1.9ppt YoY, and minority interest income as a percentage of pre-tax profit fell 4.2ppt YoY.
4）有效稅率上升，少數股東收入比例下降。在3Q24，公司的有效稅率同比上升1.9個百分點，少數股東收入佔稅前利潤的比例同比下降4.2個百分點。
5) Net margin continued to improve YoY; operating quality improved. In 1-3Q24, the quarterly attributable net margin rose 0.02ppt, 0.07ppt, and 0.31ppt YoY to 6.2%, 7.2%, and 6.1%, and the improvement of net margin accelerated in 3Q24, indicating improving operating quality.
5）淨利率繼續改善，操作質量提高。在1-3Q24，季度歸屬淨利率同比分別提高0.02個百分點，0.07個百分點和0.31個百分點至6.2%，7.2%和6.1%，淨利率改善在3Q24加速，表明操作質量有所提高。
6) Net operating cash outflow widened YoY. Net operating cash outflow widened Rmb246mn YoY to about Rmb260mn in 1-3Q24, and Rmb2.07bn YoY to about Rmb1.15bn in 3Q24.
6）淨經營現金流流出同比擴大。在1-3Q24，淨經營現金流流出同比擴大2.46億元人民幣至約26億元人民幣，而在3Q24，淨經營現金流流出同比擴大20.7億元人民幣至約11.5億元人民幣。
Trends to watch
需要注意的趨勢
Orders growth accelerate notably in 3Q24; overseas equipment expansion encouraging. The new engineering, equipment, and operation & maintenance contracts in 3Q24 rose 54%, 16%, and 27% YoY (vs. - 18%, -15%, and 41% YoY in 1H24), and new engineering and equipment contracts significantly accelerated, driving 1-3Q24 new contract value up 1% YoY (-9% in 1H24), which we attribute to the release of domestic engineering orders and rising equipment self-sufficiency.
訂單增長在第三季度24年顯著加速；境外裝備擴張令人鼓舞。在第三季度24年，新業務、設備和運維合同同比增長了54%、16%和27%（相比於上半年24年的-18%、-15%和41%），新業務和設備合同明顯加速，推動1-3季度24年新合同價值同比上升1%（上半年24年下降9%），我們認爲這歸因於國內工程訂單的釋放和設備自給率的提高。
New contracts for mine operation and maintenance rose 41% YoY in 3Q24 and 45% YoY in 1-3Q24, maintaining rapid growth. New overseas equipment contracts edged down 2% YoY in 3Q24 due to a high base, but new equipment contracts jumped 163% YoY, driving a 90% YoY increase in new equipment contracts in 1-3Q24. We expect self-sufficiency rate and earnings contribution of the overseas equipment business to rise.
第三季度24年礦山運營和維護新合同同比增長41%，1-3季度24年同比增長45％，保持快速增長。由於基數較高，第三季度24年新境外設備合同下降了2%，但新設備合同同比激增163%，推動1-3季度24年新設備合同增長90%。我們預計境外設備業務的自給率和盈利貢獻將提高。
Financials and valuation
財務和估值。
We keep our 2024 and 2025 earnings forecasts unchanged at Rmb3.42bn and Rmb3.90bn. The stock is trading at 8.0x 2024e and 7.0x 2025e P/E. We maintain an OUTPERFORM rating and target price of Rmb14.7, implying 11.4x 2024e and 10.0x 2025e P/E, offering 42.7% upside.
我們保持對2024年和2025年盈利預測不變，分別爲人民幣34.2億元和39億元。該股票的2024年預期市盈率爲8.0倍，2025年爲7.0倍。我們保持跑贏大市的評級，並將目標價維持在人民幣14.7元，對應2024年的市盈率爲11.4倍，2025年爲10.0倍，提供42.7%的上漲空間。
Risks
風險
Disappointing progress in contract execution and/or growth of equipment and operation & maintenance businesses.
合同執行進展低於預期和/或設備和運維業務增長令人失望。
譯文內容由第三人軟體翻譯。
