Investment Rating - The investment rating for the company is "Outperform the Market" [5][3]. Core Views - The company is expected to achieve a revenue growth of 4.51% year-on-year in 2024, reaching 9.39 billion yuan, with a net profit growth of 0.40%, totaling 2.51 billion yuan. This growth is attributed to the stabilization of domestic engineering machinery, increased market share of excavator hydraulic pump and valve products, continuous expansion in non-engineering machinery sectors, and ongoing development in overseas markets [1][2]. - The company's gross margin is projected to be 42.83%, with a net margin of 26.72%. The gross margin has improved due to product structure optimization, while the net margin has slightly decreased due to increased expenses [1][2]. - The company has made significant progress in its linear actuator project, with several products developed and entering mass production in 2024 [2]. Summary by Sections Financial Performance - In 2024, the company expects to generate 93.90 billion yuan in revenue, a 4.51% increase from the previous year, and a net profit of 25.09 billion yuan, reflecting a 0.40% increase. The gross margin is 42.83%, and the net margin is 26.72% [1][4]. - For Q1 2025, the company reported revenue of 24.22 billion yuan, a 2.56% increase year-on-year, and a net profit of 6.18 billion yuan, up 2.61% [1]. Product and Market Analysis - The company's domestic and international revenues for 2024 are projected at 72.51 billion yuan and 20.74 billion yuan, respectively, with year-on-year growth rates of 3.61% and 7.61%. The international revenue now accounts for 22.2% of total revenue, an increase of 0.6 percentage points [2]. - The hydraulic cylinder segment is expected to generate 47.61 billion yuan in revenue, a 1.44% increase, while the hydraulic pump and valve segment is projected to reach 35.83 billion yuan, a 9.63% increase [2]. Future Outlook - The company anticipates steady growth in its excavator business as the domestic engineering machinery market recovers. The linear actuator project is also expected to contribute to future growth, with mass production commencing in 2024 [2][3].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3]. Core Views - The company is expected to achieve a revenue growth of 4.51% year-on-year in 2024, reaching 9.39 billion yuan, and a net profit growth of 0.40%, totaling 2.51 billion yuan. This growth is attributed to the stabilization of domestic engineering machinery, increased market share in hydraulic pumps and valves for excavators, continuous expansion in non-engineering machinery products, and ongoing development in overseas markets [1][2]. - The company has made significant progress in its diversification strategy, with domestic and international revenues of 7.25 billion yuan and 2.07 billion yuan respectively, reflecting year-on-year increases of 3.61% and 7.61%. The international revenue now accounts for 22.2% of total revenue, up by 0.6 percentage points [2]. - The linear actuator project is advancing steadily, with multiple products developed and entering mass production in 2024, indicating potential for future growth [2]. Financial Summary - The company's gross margin is 42.83% and net margin is 26.72% for 2024, with gross margin improving due to product structure optimization, while net margin slightly decreased due to increased expenses [1]. - The projected net profits for 2025-2027 are 2.79 billion yuan, 3.23 billion yuan, and 3.80 billion yuan respectively, with corresponding P/E ratios of 36, 31, and 26 [3][4]. - The company’s revenue and net profit forecasts for 2023 to 2027 are as follows: - Revenue: 8.99 billion yuan (2023), 9.39 billion yuan (2024), 10.51 billion yuan (2025E), 11.78 billion yuan (2026E), 13.45 billion yuan (2027E) - Net Profit: 2.50 billion yuan (2023), 2.51 billion yuan (2024), 2.79 billion yuan (2025E), 3.23 billion yuan (2026E), 3.80 billion yuan (2027E) [4][20].

Investment Rating - The industry investment rating is maintained as "Positive" [1] Core Viewpoints - The engineering machinery industry is experiencing a positive cycle driven by both domestic and overseas demand, with significant revenue growth and improved profitability expected in 2024 and Q1 2025 [3][4] - The "Belt and Road" initiative is expected to boost exports, with a notable increase in overseas market share and a recovery in the domestic cycle anticipated [4][5] Revenue Growth - In 2024, the total revenue of the five major engineering machinery manufacturers reached 259.8 billion, a year-on-year increase of 3% [6][11] - In Q1 2025, the total revenue reached 72.6 billion, marking a year-on-year increase of 12% and a quarter-on-quarter increase of 11% [6][11] Profitability Improvement - The net profit attributable to shareholders for the five major manufacturers in 2024 was 17.9 billion, up 19% year-on-year [24] - In Q1 2025, the net profit reached 6.8 billion, reflecting a year-on-year increase of 42% and a quarter-on-quarter increase of 164% [24] Export Growth - In April 2025, export sales reached 9,595 units, a year-on-year increase of 19.3%, with the "Belt and Road" region accounting for 64% of the total export value in Q1 2025, up 15% year-on-year [4][5] Domestic Market Recovery - Domestic sales in April 2025 reached 12,547 units, a year-on-year increase of 16.4%, indicating a recovery in the domestic cycle [4][5] Investment Recommendations - The report recommends focusing on industry leaders such as SANY Heavy Industry, XCMG, Shantui, and others, while also paying attention to companies like Noli [5] Cash Flow and Financial Health - Operating cash flow for the five major manufacturers increased by 75% in 2024 and by 16% in Q1 2025, indicating improved operational quality [59][62] - The asset-liability ratio for 2024 and Q1 2025 was 57%, showing a year-on-year decrease of 1.7 percentage points and 1.1 percentage points, respectively [65]

Investment Rating - The industry investment rating is "Positive" (maintained) [5] Core Viewpoints - In April 2025, the total sales of excavators reached 22,142 units, representing a year-on-year growth of 17.6%, with domestic sales increasing by 16.4% and export sales rising by 19.3% [2][3] - The excavator sales from January to April 2025 totaled 83,514 units, showing a year-on-year increase of 21.4%, with domestic sales up by 31.9% and export sales up by 9.0% [2] - The demand for small excavators is driven by agricultural and municipal needs, while domestic demand for large and super-large excavators is expected to gradually increase due to water conservancy projects [3] - The loader sales in April 2025 reached 11,653 units, a year-on-year increase of 19.2%, with domestic sales growing by 35.4% [3] - The electric loader sales in April 2025 were 2,924 units, marking a significant year-on-year growth of 211%, with a penetration rate of 25% [15][16] - The report anticipates a gradual recovery in the domestic machinery industry, driven by improved domestic demand, increased export market share, and the initiation of a replacement cycle [3][4] Summary by Sections Excavator Sales - April 2025 excavator sales totaled 22,142 units, with domestic sales at 12,547 units and export sales at 9,595 units, reflecting year-on-year growth of 16.4% and 19.3% respectively [2][12] - The sales from January to April 2025 reached 83,514 units, with domestic sales at 49,109 units and export sales at 34,405 units, indicating a year-on-year increase of 31.9% for domestic sales [2] Loader Sales - Loader sales in April 2025 were 11,653 units, with domestic sales at 7,191 units and export sales at 4,462 units, showing a year-on-year increase of 35.4% for domestic sales [3] - The total loader sales from January to April 2025 were 42,220 units, with domestic sales at 23,570 units, reflecting a year-on-year growth of 27.8% [3] Market Trends - The report highlights the ongoing globalization of the Chinese construction machinery industry, with an expected increase in overseas market share [3] - Domestic demand is projected to improve due to government initiatives, including the issuance of long-term special bonds and local government special bonds aimed at infrastructure investment [4] - The report suggests that the domestic replacement cycle for excavators is expected to gradually initiate in 2025, following a historical cycle of 8-10 years [4]

Investment Rating - The industry investment rating is "Positive" (maintained) [5] Core Viewpoints - In April 2025, the total sales of excavators reached 22,142 units, representing a year-on-year growth of 17.6%, with domestic sales increasing by 16.4% and export sales rising by 19.3% [2][3] - The excavator sales from January to April 2025 totaled 83,514 units, showing a year-on-year increase of 21.4%, with domestic sales up by 31.9% and export sales up by 9.0% [2] - The demand for small excavators is driven by agricultural, forestry, and municipal needs, while domestic demand for large and super-large excavators is expected to gradually increase due to water conservancy projects [3] - The recovery of the engineering machinery industry is supported by three main factors: improvement in domestic demand, increasing export market share, and the anticipated start of the domestic replacement cycle [3][4] Summary by Sections Excavator Sales - In April 2025, excavator sales showed a year-on-year growth of 18%, with domestic sales up by 16% and export sales up by 19% [2] - The sales of excavators in April 2025 were 12,547 units domestically, and 9,595 units were exported [12][13] Loader Sales - In April 2025, loader sales reached 11,653 units, with domestic sales increasing by 35.4% and export sales slightly declining by 0.2% [3] - From January to April 2025, loader sales totaled 42,220 units, reflecting a year-on-year growth of 16% [3] Market Dynamics - The report highlights the potential for the engineering machinery sector to benefit from both domestic and international markets, with expectations of continued positive growth in excavator sales in May 2025 [3] - The government plans to issue long-term special bonds and local government bonds to support infrastructure investment, which is expected to improve domestic demand for engineering machinery [4] Company Recommendations - The report recommends focusing on industry leaders such as Sany Heavy Industry, XCMG, and others, while also monitoring companies like Noli [5]

Market Overview - The A-share market saw most major indices rise last week, with the ChiNext Index experiencing the largest increase of 3.82% [2] - The Shanghai Composite Index rose by 1.77%, the Shenzhen Component Index by 2.04%, the CSI 300 by 2.30%, the SSE 50 by 2.28%, and the CSI 500 by 0.72% [2] - As of May 13, the margin trading balance in the two markets was 1,804.849 billion yuan, an increase of 8.630 billion yuan from the previous week [2] - The average number of investors participating in margin trading was 350,743, up 12.32% from the previous week [2] Industry Insights - In April, excavator sales reached 22,100 units, marking a year-on-year increase of 17.6% [5] - Loader sales in April totaled 11,700 units, with a year-on-year growth of 19.2% [5] - The cumulative sales of excavators from January to April were 83,500 units, up 21.4% year-on-year, with domestic sales accounting for 49,100 units, reflecting a 31.9% increase [6] - The average operating rate of construction machinery in the first quarter was 44.67%, with 12 provinces exceeding 50% [6] Company Announcements - China CNR Corporation disclosed recent major contracts totaling approximately 54.74 billion yuan [5] - Xuchang Investment plans to increase its stake in Huanghe Xuanfeng by 100 million to 200 million yuan [5] Stock Performance - From May 7 to May 13, the CSI 300 index rose by 2.30%, while the machinery equipment sector increased by 1.95%, underperforming the CSI 300 by 0.35 percentage points [5] - As of May 13, the price-to-earnings ratio (TTM) for the machinery equipment sector was 27.17 times, with a valuation premium of 128.62% over the CSI 300 [6] Future Outlook - The report maintains a "positive" outlook for the industry, highlighting the expected increase in demand for construction machinery driven by improved operating conditions [6] - Tesla's updates on humanoid robots indicate a clear path to mass production, potentially accelerating the development of the related industry chain [6] - The report recommends maintaining "overweight" ratings for companies such as SANY Heavy Industry, Zoomlion Heavy Industry, and China CNR Corporation [6]

Investment Rating - The report assigns a "Buy-A" rating for the company, indicating a strong potential for price appreciation in the next 6-12 months [9]. Core Views - The company is expected to benefit in the short term from the recovery of the excavator market, while the long-term outlook is positive due to its focus on electrification and global expansion [5][9]. - The company's revenue for 2024 is projected to be 9.39 billion yuan, a year-on-year increase of 4.51%, with a net profit of 2.51 billion yuan, reflecting a modest growth rate [5][11]. Financial Performance Summary - In 2024, the company achieved a revenue of 93.90 billion yuan, with a net profit of 25.09 billion yuan, showing a slight increase of 0.4% year-on-year [5]. - The gross margin for 2024 is reported at 42.83%, an increase of 0.93 percentage points year-on-year, indicating ongoing cost reduction and efficiency improvements [6]. - The company’s hydraulic cylinder product revenue reached 47.61 billion yuan, a year-on-year increase of 1.44%, while hydraulic pump and valve products generated 35.83 billion yuan, a 9.63% increase, marking a historical high [7]. Strategic Initiatives Summary - The company is advancing its electrification strategy, with a linear actuator project entering mass production, which is expected to contribute to new business growth in the medium to long term [8]. - The internationalization strategy is being reinforced with production capacity established in Mexico and service centers in the U.S., Brazil, Indonesia, and India, covering over 20 countries and regions [7]. Earnings Forecast Summary - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 2.12 yuan, 2.44 yuan, and 2.93 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 35.4, 30.8, and 25.7 [9][11].

Core Viewpoint - Jiangsu Hengli Hydraulic Co., Ltd. successfully completed a non-public offering of 35,460,992 shares at a price of 56.40 RMB per share, raising a total of approximately 1.99 billion RMB in net funds [1][2]. Group 1: Company Overview - Jiangsu Hengli Hydraulic Co., Ltd. was established on June 2, 2005, with a registered capital of 1,340,820,992 RMB [1]. - The company specializes in the research, production, and technical support of high-pressure cylinders, hydraulic components, hydraulic systems, high-pressure plunger pumps and motors, high-pressure hydraulic valves, and precision castings [1]. Group 2: Sponsorship and Supervision - China International Capital Corporation (CICC) served as the sponsor for Hengli Hydraulic's non-public offering and is responsible for ongoing supervision [1][2]. - The sponsorship period for the non-public offering will conclude on December 31, 2024, and CICC will continue to oversee the remaining use of raised funds [4]. Group 3: Due Diligence and Compliance - During the due diligence phase, CICC conducted thorough investigations and prepared necessary documentation in compliance with regulations set by the China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange [2]. - Throughout the ongoing supervision phase, Hengli Hydraulic adhered to legal and regulatory requirements, ensuring timely and accurate information disclosure [3]. Group 4: Fund Management - The company has complied with regulations regarding the management of raised funds, maintaining dedicated accounts for storage and specific usage [3]. - As of December 31, 2024, there are still some unutilized funds from the raised capital, and CICC will continue to monitor their usage [4].

中国国际金融股份有限公司 关于江苏恒立液压股份有限公司 2021 年度非公开发行 A 股股票持续督导保荐总结报告书 经中国证券监督管理委员会《关于核准江苏恒立液压股份有限公司非公开发 行股票的批复》（证监许可[2022]59 号）核准，江苏恒立液压股份有限公司（以 下简称"恒立液压"或"公司"）通过非公开发行人民币普通股股票 35,460,992 股，每股面值 1 元，每股发行价格 56.40 元，募集资金总额为人民币 1,999,999,948.80 元，扣除本次非公开发行累计发生的发行费用 10,382,744.64 元 （不含增值税）后，募集资金净额为 1,989,617,204.16 元。 中国国际金融股份有限公司（以下简称"中金公司"、"保荐机构"）作为恒 立液压 2021 年度非公开发行 A 股股票并持续督导的保荐机构，负责恒立液压的 持续督导工作。 截至 2024 年 12 月 31 日，恒立液压 2021 年度非公开发行 A 股股票并上市 项目的持续督导期已届满，中金公司根据《证券发行上市保荐业务管理办法》《上 海证券交易所股票上市规则》《上海证券交易所上市公司自律监管指引第 11 号— —持 ...

Group 1 - In April 2025, total sales of excavators reached 22,142 units, representing a year-on-year growth of 17.6%. Domestic sales accounted for 12,547 units, up 16.4%, while exports totaled 9,595 units, increasing by 19.3% [1][2] - From January to April 2025, a total of 83,514 excavators were sold, marking a year-on-year increase of 21.4%. Domestic sales during this period were 49,109 units, up 31.9%, and exports were 34,405 units, growing by 9.02% [2] - The domestic sales accounted for 57% of total sales in April 2025, while exports made up 43%. For the first four months of 2025, domestic sales represented 59% of total sales, with exports at 41% [2] Group 2 - The average working hours for major construction machinery in April 2025 increased by 3.20% year-on-year, with excavators averaging 85 hours of operation [3] - The overall operating rate for major construction machinery in April 2025 was 62%, showing a year-on-year decline of 4.29 percentage points, although it increased by 1.17 percentage points compared to the previous month [3] - The utilization rate of tower cranes from Pangyuan Leasing improved significantly, reaching 49.7% in March 2025, which is a year-on-year increase of 3.5% and a month-on-month increase of 20.5% [3] Group 3 - The risk exposure of most Chinese construction machinery manufacturers to the U.S. market is relatively low, with companies like XCMG and Zoomlion having less than 1% and around 1% of their total revenue from the U.S., respectively [4] - Recommended stocks include SANY Heavy Industry, Zoomlion, XCMG, and Hengli Hydraulic, with LiuGong identified as a beneficiary [5]