Sinoma International Engineering (600970) H2 2024 earnings summary

Executive summary

• Achieved record highs in new contracts, revenue, and net profit, with new contracts of ¥63.44 billion, up 3% year-over-year; revenue of ¥46.13 billion, up 0.72%; and net profit attributable to shareholders of ¥2.98 billion, up 2.31%.

• Overseas business drove growth, with new overseas contracts up 9% and overseas revenue up 10.85% year-over-year.

• Maintained strategic focus on value creation, risk management, and global market expansion, despite domestic cement industry overcapacity and declining demand.

Financial highlights

• Revenue: ¥46.13 billion, up 0.72% year-over-year.

• Net profit attributable to shareholders: ¥2.98 billion, up 2.31% year-over-year.

• Operating cash flow: ¥2.29 billion, down 35.23% year-over-year due to market settlement and increased use of notes.

• Gross margin: 19.63%, up 0.2 percentage points year-over-year.

• Basic EPS: ¥1.14; ROE: 14.96%.

Outlook and guidance

• International cement demand expected to grow over 2% in 2025, with stable demand in core regions (Africa, Middle East, Southeast Asia).

• Domestic cement demand to decline, but policy support may slow the decrease; green, low-carbon, and digital transformation to drive future demand.

• Strategic focus on global expansion, digital intelligence, high-end equipment, and green energy.