\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 970 Sinoma International Engineering Co.Ltd(600970) )
Event:
Sinoma International Engineering Co.Ltd(600970) released the report for the first quarter of 2022: the company achieved a revenue of 8.73 billion yuan, a year-on-year increase of 16.08%; The net profit attributable to the parent company was 479 million yuan, a year-on-year increase of 4.99%.
Key investment points:
The performance in the first quarter is stable and is expected to continue to benefit from steady growth. In the first quarter of 2022, the company achieved a revenue of 8.73 billion yuan, a year-on-year increase of 16.08%; The net profit attributable to the parent company was 479 million yuan, a year-on-year increase of 4.99%. During the reporting period, the company’s newly signed contracts amounted to 8.8 billion yuan, a year-on-year decrease of 16%, and the newly signed domestic and foreign cement mine technical equipment and engineering contracts amounted to 5.47 billion yuan, a year-on-year decrease of 27.37%, including 4.69 billion yuan for new production line contracts and 780 million yuan for old line technical transformation contracts. By the end of the reporting period, the outstanding contract amount of the company was 51.041 billion yuan, a decrease of 9.81% over the previous period. The company’s equity incentive has been promoted smoothly, the integration and reorganization have enhanced synergy, and the performance growth is stable. It is expected to continue to benefit from the “steady growth” expectation.
Profit forecast and investment rating: the company operates steadily, the engineering business grows steadily, and the equipment manufacturing business and environmental protection business develop rapidly. We expect the company to realize net profit attributable to parent company of RMB 2.312 billion, RMB 2.696 billion and RMB 3.163 billion respectively from 2022 to 2024, corresponding to PE of 8.92x, 7.65x and 6.52x. Considering that the company has good development potential in carbon emission reduction, industrial intelligence and other fields and has leading premium value, the “buy” rating is maintained.
Risk tip: the growth of engineering business is less than expected; The development of equipment and environmental protection business is less than expected; The epidemic situation has repeatedly affected the company’s overseas business; The exchange rate fluctuates sharply; There is uncertainty in the stock grant plan; The company has the risk of goodwill impairment.
