Sinoma International Engineering (600970) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 20.89 billion, up 1.68% year-over-year; net profit attributable to shareholders was RMB 1.40 billion, up 2.28% year-over-year.

• Gross margin improved to 19.39%, up 1.04 percentage points year-over-year; operating cash flow turned positive to RMB 885 million.

• New contract signings totaled RMB 37.09 billion, down 9% year-over-year, with overseas contracts up 9% and domestic contracts down 28%.

• The company maintained its global leadership in cement engineering and equipment, with international revenue up 15.23% year-over-year.

• R&D investment reached RMB 724 million in H1 2024, supporting green, low-carbon, and digital transformation initiatives.

Financial highlights

• Operating income: RMB 20.89 billion, up 1.68% year-over-year; net profit attributable to shareholders: RMB 1.40 billion, up 2.28%.

• Operating cash flow: RMB 885 million inflow, a significant improvement from a RMB 940 million outflow last year.

• Basic and diluted EPS: RMB 0.53, up 1.92% year-over-year.

• Total assets: RMB 56.21 billion, up 3.30% from year-end 2023; net assets: RMB 19.58 billion, up 2.52%.

• Gross margin: 19.39%, up 1.04 percentage points year-over-year.

Outlook and guidance

• The company expects continued global demand for green, low-carbon, and digital cement solutions, with international markets driving growth.

• Domestic market remains challenging due to overcapacity and weak demand, but policy support for green upgrades and equipment renewal is expected to stimulate future opportunities.

• The company will continue to focus on high-quality, profitable, and cash-generating projects, and maintain high R&D investment.