Sinoma International (600970): Gross profit margin hits record high Domestic business or new growth point in performance

Sinoma International (600970): Gross profit margin hits record high Domestic business or new growth point in performance

In the new year, the company’s overall revenue will increase, and the domestic business may become a new growth point of performance.

8.6 billion, 14% over ten years; 443 outstanding contracts.

8 billion, about twice the revenue in the same period.

The company has signed a total of 96 new contracts for diversified business (including diversified engineering, production and operation management, energy conservation and environmental protection).

3 billion, accounting for 31% of the total number of newly signed contracts, to further optimize the business structure.

In terms of different regions, the company has benefited from the continued improvement of the domestic cement industry, and has in-depth cooperation with related companies. In 2018, it has gradually pushed forward new breakthroughs of 88.

3.9 billion, an increase of 33.

92%; the unit amount of overseas new progressive ten years is 221.

47 billion, 24 from the previous decade.

41%, or the intensified competition in the international cement market, insufficient demand, and major project investment.

In the future, domestic business may become a new growth point of order performance.

By 2018, the company’s revenue scale will maintain better growth and achieve revenue of 215.

1.0 billion, an increase of 9 in ten years.

96%; of which, the environmental protection business has made positive progress in various fields and achieved revenue of 15%.

1.3 billion, the growth rate remained at 26.

36% high.

By region, domestic business has become the main growth force, with 2018 revenue of 53.

0.6 billion, an increase of 47.

63%, overseas revenue 161.

0.6 billion, a slight increase of 1.


In terms of gross profit margin, the company’s comprehensive gross profit margin in 2018 reached 18.

56%, an increase of 1 from the previous year.

75 units, a record high.

Refined management and localization strategies help the gross profit margins of engineering construction and production operation management increase.

83 and 1.

85 units; equipment manufacturing and environmental protection business decreased by 1.

32 and 2.

77 levels, or may be related to increased competition in the industry.

Collective mining and online mining continue to regulate the rest of the company ‘s gross margin in the 四川耍耍网 future. There is room for improvement.

The exchange rate resulted in a decrease in the expense ratio during the period, and the net profit attributable to the mother increased significantly during the period.

96%, 2 units lower than the same period last year.

Among them, the sales expense ratio and management expense ratio increased by 0 respectively.

19 and 0.

22 units; financial expense budget -0.

93%, same decrease of 2.

The 41 singles were mainly due to the company’s exchange loss converted into exchange gains in 2018 when the RMB depreciated sharply.

The company currently has a certain hedging of foreign exchange holdings, and is expected to hedge some of the appreciation risk this year.The company’s asset impairment loss was 1.

9.2 billion, an increase of 0 from the previous year.

3.7 billion, no impairment of goodwill was recognized this year.

Taken together, the company achieved a net profit of 14.

3.0 billion, has reached the evaluation target of the first exercise period of the stock budget incentive plan (net profit composite output in 2018 is not less than 18% compared with 2016); net profit attributable to mother is 13.

6.8 billion, an increase of 39.


The cash-to-cash ratio has declined, and operating cash flow has improved from the previous year. The company’s cash-to-cash ratio in 2018 was 0.

89, a decrease of 13 units over the previous year; the payout ratio is 1.

02, a decrease of 12 units compared with the previous year, mainly due to the adoption of installments in accordance with the contract stipulated in the Egyptian GOEBeniSuef project.

Taken together, the company’s operating cash net replacement in 2018.

2 billion, a decrease of 3 from the previous year.

4 billion.

Investment suggestions The company’s business structure has been further optimized, and the revenue of various businesses has increased, helping the overall gross profit rate to reach a record high, and the net profit attributable to mothers has increased significantly.

The recent Belt and Road Conference will soon become an antique, which will help the company to evaluate and improve.

We maintain the company’s EPS for 2019-2021.

00, 1.

21, 1.

The forecast of 30 yuan per share corresponds to 8, 7, and 6 times PE.

Maintain target price of 9 yuan and maintain “Buy” rating.

Risk reminder: the project advances less than expected; the risk of goodwill impairment.