Summary of Conference Call Company and Industry Involved - The conference call primarily discusses the performance and outlook of the engineering machinery industry, with a focus on companies such as XCMG (徐工机械) and SANY (三一重工) [2][6]. Core Points and Arguments 1. **Profit Growth Expectations**: Many companies, including XCMG, are expected to achieve profit growth rates exceeding 20% in 2023, compared to last year's growth of around 4-5% [1][3]. 2. **Engineering Machinery as a Key Sector**: The engineering machinery sector is highlighted as a key investment area, with XCMG and SANY identified as top picks for the year [2][3]. 3. **Revenue Growth Projections**: Overall revenue growth for the engineering machinery sector is projected to be in the range of 10-20%, driven by both domestic and international demand [3][19]. 4. **Export Growth**: A significant portion of revenue growth is attributed to overseas exports, particularly in regions such as Africa, the Middle East, and Southeast Asia, where market share is increasing [4][19]. 5. **Domestic Demand**: Domestic demand is also expected to grow, with estimates ranging from 5% to over 10% [3][19]. 6. **Market Conditions**: The overall market conditions are optimistic, with a strong start to Q1 2023, and expectations of continued growth throughout the year [5][19]. 7. **Technological Advancements**: XCMG is focusing on technological improvements and smart manufacturing, which are anticipated to enhance profit margins and operational efficiency [17][19]. 8. **Mining Machinery Segment**: The mining machinery segment is highlighted as a rapidly growing area, with XCMG achieving significant market share improvements, ranking fourth globally in surface mining equipment [15][16]. 9. **Valuation and Investment Potential**: Current valuations for XCMG are considered low, with a price-to-earnings (PE) ratio around 12, suggesting potential for upward adjustment [6][13]. 10. **Impact of Policy Changes**: Recent policy changes and government support for infrastructure projects are expected to positively impact the engineering machinery sector [11][19]. Other Important but Possibly Overlooked Content 1. **Seasonal Factors**: The timing of the Chinese New Year in 2023 (January 29) compared to 2022 (February 10) has positively influenced January and February sales data [5][10]. 2. **Foreign Exchange Considerations**: XCMG's operations in Brazil are significant, with currency fluctuations impacting financial performance; the Brazilian real has shown signs of recovery [12]. 3. **Long-term Market Trends**: The long-term outlook for the engineering machinery market remains positive, with expectations of sustained growth driven by infrastructure development and equipment upgrades [11][19]. 4. **Competitive Landscape**: The competitive landscape is evolving, with XCMG increasing its visibility and competitiveness in the global mining machinery market [15][19]. This summary encapsulates the key insights and projections discussed during the conference call, providing a comprehensive overview of the current state and future outlook of the engineering machinery industry.

Group 1: Domestic Market Outlook - The company observes positive signs in the domestic market, particularly in earthmoving machinery, which has seen continuous recovery [2] - The "two-step" strategy proposed by the government is still in its initial phase, but the company maintains an optimistic outlook on the economy and the engineering machinery industry [2] - Key factors supporting this optimism include uneven urbanization development, significant internal investment growth, the development of the new energy industry, natural equipment replacement demand, and growth potential in niche markets [2] Group 2: Export Market Expectations - The company expects the overseas market to maintain a good trend, with export revenue continuing to grow [3] - The overseas market is characterized by growth potential, with sustained demand for domestic brands and improved product quality enhancing competitiveness [3] - The company’s international revenue accounted for 46.7% in the first three quarters of 2024, indicating strong global market penetration [3] Group 3: Global Market Strategy - The company has a comprehensive global layout, with a marketing network covering over 190 countries and regions [3] - Major export regions include Southeast Asia, Central Asia, Africa, South America, Europe, North America, and the Middle East and North Africa [3] - The company emphasizes long-term cooperation with distributors for overseas sales, adapting strategies to local conditions [3] Group 4: Mining and Agricultural Machinery - The company ranks first in the domestic market and among the top five globally in mining machinery, with mining excavators accounting for over 35% of revenue and mining trucks nearly 50% [3] - The agricultural machinery division, established in June 2020, focuses on tractors and harvesting machinery, with significant advancements in product reputation and market expansion expected in 2024 [3]

证券代码：000425 证券简称：徐工机械 公告编号：2025-02 徐工集团工程机械股份有限公司 关于回购公司股份注销的进展公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、 误导性陈述或重大遗漏。 徐工集团工程机械股份有限公司（以下简称"公司"）分别于 2024 年 4 月 28 日、2024 年 5 月 22 日召开第九届董事会第十七 次会议、2023 年年度股东大会，审议通过了《关于回购公司股份 的议案》，基于对未来发展的信心和对公司价值的认可，为维护广 大投资者利益，增强投资者信心，提升公司资本市场形象，在考 虑经营情况、财务状况及未来发展战略的基础上，同意公司以自 有资金通过二级市场回购公司股份，本次回购的股份将用于减少 公司注册资本，并自回购完成之日起十日内注销。本次回购资金 总额不超过人民币 60,000 万元（含），不低于人民币 30,000 万元 （含），回购价格不超过人民币 8.5 元/股（含）。具体回购股份的 数量以回购期限届满时实际回购的股份数量为准。 本次回购股份的实施期限自公司股东大会审议通过回购股 份方案之日起不超过十二个月。具体内容详见公司刊登在巨 ...

投资者关系活动 类别 √特定对象调研 □分析师会议 □媒体采访 □业绩说明会 □新闻发布会 □路演活动 □现场参观 □其他 （请文字说明其他活动内容） 活动参与人员 国金证券 倪赵义，华夏基金 袁诗林、乌焕强 时间 2025 年 1 月 23 日 14:30-17:00 地点 一、公司 612 会议室；二、徐工体验厅。 上市公司接待人 员姓名 李栋、刘敏芳 交流内容及具体 问答记录 一、互动交流 （一）对明年出口市场预计？ 答：公司预计海外市场继续保持良好态势，出口收入依然能保持较好的增 长。首先，对国产品牌来说海外市场具有成长性特征，海外市场需求持续释放； 其次，随着国产产品品质的不断提升，国内企业在海外的渠道布局的日趋完善， 服务后市场建设的提速，国产品牌综合竞争力在提升，海外市场渗透率在提高； 再次，从在主要区域市场占比情况看，大部分产品仍有很大的提升空间；最后， 国内重点企业纷纷调整全球产能规划，落地本地化战略，加速全球化布局。总 体来说，十四五期间，国产品牌行业海外市场销量有望保持增长趋势，是工程 机械行业的重要增长点。 （二）出口产品结构？ 答：2024 年上半年，公司出口产品及占比主要为：土方机 ...

投资者关系活动 类别 √特定对象调研 □分析师会议 □媒体采访 □业绩说明会 □新闻发布会 □路演活动 □现场参观 □其他 （请文字说明其他活动内容） 活动参与人员 招商信诺 刘延波、易方达基金 郑涛岳、东方红 李疆、东吴证券 黄瑞 时间 2025 年 1 月 22 日 14:30-17:00 地点 一、公司 612 会议室；二、徐工矿机。 上市公司接待人 员姓名 李栋、刘敏芳 交流内容及具体 问答记录 一、互动交流 （一）外销市场预计？ 答：公司预计海外市场继续保持良好态势，海外收入依然能保持较好的增 长。首先，对国产品牌来说海外市场具有成长性特征，海外市场需求持续释放； 其次，随着国产产品品质的不断提升，国内企业在海外的渠道布局的日趋完善， 服务后市场建设的提速，国产品牌综合竞争力在提升，海外市场渗透率在提高； 再次，从在主要区域市场占比情况看，大部分产品仍有很大的提升空间；最后， 国内重点企业纷纷调整全球产能规划，落地本地化战略，加速全球化布局。总 体来说，十四五期间，国产品牌行业海外市场销量有望保持增长趋势，是工程 机械行业的重要增长点。 （二）出口产品结构？ 答：2024 年上半年，公司出口产品及占 ...

Group 1: Company Overview and Product Breakdown - The company primarily engages in the research, manufacturing, sales, and service of various types of machinery, including earthmoving machinery (28% revenue, ¥139 billion), lifting machinery (20.34% revenue, ¥101 billion), concrete machinery (10.39% revenue, ¥52 billion), and aerial work machinery (9.12% revenue, ¥45 billion) [2][3]. Group 2: Domestic Market Outlook - The company observes positive signs in the domestic market, particularly in earthmoving machinery, which has shown consistent growth. The long-term outlook remains optimistic due to the government's "two-step" strategy [2][3]. Group 3: Export Market Expectations - The company anticipates continued growth in the overseas market, driven by the increasing demand for domestic brands and improvements in product quality. The international revenue for the first three quarters of 2024 accounted for 46.7% of total revenue [3][4]. Group 4: Export Product Structure - In the first half of 2024, the export product structure was as follows: earthmoving machinery (38%), lifting machinery (26%), mining machinery (8%), and road machinery (7%) [4]. Group 5: Mining Machinery Status - The company's mining machinery segment is a burgeoning industry, ranking first domestically and among the top five globally. The revenue breakdown includes mining excavators (over 35% revenue) and mining trucks (nearly 50% revenue) [4].

Industry Outlook - The domestic market for the construction machinery industry has shown positive signs, with earthmoving machinery achieving positive growth for several consecutive months [1] - Policies such as the trillion-yuan special treasury bond issuance and "large-scale equipment renewal" are expected to stabilize and revive the industry [1] - The industry is believed to be gradually entering the upward phase of the previous cycle [1] Long-term Strategy - The national "two-step" strategy is still in the initial stage of the second step, indicating long-term optimism for the economy and the construction machinery industry [1] International Market - The overseas market presents significant opportunities, and Chinese companies have accumulated decades of experience, positioning them well for international expansion [1] - Overseas markets are seen as a key area for future development for all Chinese brands [1]

Domestic Market Outlook - Positive signs in domestic sales, especially in earthmoving machinery, with consecutive months of positive growth [2] - Trillion-yuan bond issuance and "large-scale equipment renewal" policies expected to stabilize and revive the industry [2] - Long-term optimism due to uneven urbanization, investment growth, new energy industry development, natural equipment renewal, and growth potential in niche products [2] Overseas Market Outlook - Overseas market expected to maintain strong growth, with international revenue accounting for 46.7% in the first three quarters of 2024 [3] - Growing demand for domestic brands overseas, improved product quality, and enhanced service capabilities boosting market penetration [3] - Significant growth potential in key regional markets, with domestic companies accelerating global capacity planning and localization strategies [3] Export Regions and Strategy - Global presence in over 190 countries and regions, with key export areas including Southeast Asia, Central Asia, Africa, South America, Europe, North America, West Asia, North Africa, Central America, and Oceania [3] - Strategic focus on Latin America and Asia, while continuing to target high-end markets in Europe, America, and Australia [3] Mining Machinery Business - Mining machinery business ranks first domestically and top five globally, with key products including mining excavators (over 35% of revenue) and mining trucks (nearly 50% of revenue) [3] - Remaining revenue comes from spare parts and other related products [3]

Key Takeaways Industry and Company Overview * **Industry**: Construction machinery industry, specifically focusing on excavators and loaders. * **Companies**: Xugong Group Corporation Limited (Xugong) and Shantui Construction Machinery Co., Ltd. (Shantui). * **Market Performance**: The industry is expected to see a double-bottom formation in 2023 and 2024, with a 12% growth in the domestic market and positive growth in excavators and loaders. Core Views and Arguments * **Double-bottom Formation**: The industry is expected to see a recovery in 2023 and 2024, driven by positive growth in the domestic market and increasing demand from overseas. * **Xugong and Shantui as Gold Stocks**: Both companies are recommended as gold stocks due to their state-owned enterprise background, mixed-ownership reform, high ROE, low PB valuation, and strong cost competitiveness in overseas markets. * **Cost Competitiveness**: China's construction machinery industry has significant cost advantages, including raw material costs, supply chain integrity, and labor costs, driving its products to global markets and achieving a breakthrough in the electric vehicle field. * **Positive Outlook for 2025**: Leading companies like Xugong, Sany Heavy Industry, Shantui, and Zoomlion are optimistic about the 2025 outlook, with expected domestic market growth of 5%-10% and overseas market growth of 15%-20%. * **Alpha Potential**: Xugong and Shantui demonstrate significant alpha potential, with Xugong benefiting from mixed-ownership reform, export markets, and mining machinery, while Shantui benefits from asset injection, product innovation, and management reform. Other Important Points * **Xugong's Profit Forecast**: Xugong's profit is expected to reach 61-62 billion yuan in 2024 and 77-78 billion yuan in 2025, with a growth rate of about 25%, driven by improved asset quality, mixed-ownership reform, increased proportion of new products, and higher overseas revenue. * **Shantui's Growth Prospects**: Shantui is expected to achieve significant growth in the coming years, with its excavator business expanding and its bulldozer business expanding overseas. Leveraging the resources of Shandong Heavy Industry Group, Shantui is expected to become one of the fastest-growing sectors within the group. * **Industry Trends**: The construction machinery industry is expected to see positive trends, with domestic demand turning positive since March 2024 and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Xugong's Performance in Europe and the United States**: Xugong is expected to perform well in Europe and the United States in 2025, with significant reforms implemented in these regions. However, their contribution to overseas revenue is relatively low, estimated at about 10%. * **Xugong's Performance in Other Overseas Markets**: Xugong has a strong presence in South America and Africa, with a significant market share and strong competitive advantage. The Southeast Asian market is relatively competitive, but there are signs of recovery in countries like Indonesia. * **Xugong's Mining Machinery Business**: Xugong is a significant player in the mining machinery market, ranking fourth or fifth globally. The company has set a vision to achieve a revenue of 200 billion yuan by 2027 and a post-market share of 35%. * **Mixed-ownership Reform's Impact on Xugong**: Mixed-ownership reform has improved Xugong's asset quality, including significant improvement in off-balance sheet liabilities, receivables, cash flow, and debt-to-asset ratio. The company's gross profit margin is expected to increase through internal optimization and cost reduction measures. * **Xugong's Long-term Development Goals**: Xugong has set a long-term vision to achieve a revenue of over 1.5 trillion yuan and a net profit margin of 10% by 2027. The company expects a strong performance in the first quarter of 2025, driven by positive factors both domestically and internationally. * **Shantui's Development Prospects**: Shantui is expected to achieve significant growth in the coming years, with its excavator business expanding and its bulldozer business expanding overseas. Leveraging the resources of Shandong Heavy Industry Group, Shantui is expected to become one of the fastest-growing sectors within the group. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and internationalization strategies. * **Shantui's Sales Markets**: Shantui's main sales markets include Russia, Australia, India, Indonesia, Canada, and China. The company expects significant growth in the large-horsepower bulldozer market in the mining sector. * **Shantui's Excavator Business**: Shantui has acquired Shantui Motor, which is expected to drive the company's excavator business. The company has a comprehensive product layout, including micro, small, medium, large, and new energy excavators, with a total production capacity of 20,000 units. * **Leiwei Heavy Industry**: Leiwei Heavy Industry is a major player in the construction machinery industry, with products including excavators, loaders, wide-body dump trucks, and integrated equipment. The company is building the Weichai Qingdao Smart Heavy Industry Manufacturing Center project, which will focus on large and high-end mining equipment. * **Shantui's Export Performance**: Shantui's large-horsepower bulldozer exports have performed well, with a significant increase in export volume and value in 2023. * **Shantui's Management Changes**: Recent management changes at Shantui demonstrate the company's commitment to a new round of growth. The new management team brings experience and expertise in the industry. * **Industry Trends**: The construction machinery industry is expected to see a strong recovery, with domestic demand turning positive and overseas demand increasing. Major companies like Xugong are expected to lead the industry through mixed-ownership reform, technological innovation, and international

Investment Rating - The report assigns a **Buy** rating to XCMG with a 12-month target price of RMB 8.40, representing a potential upside of 12.8% from the current price of RMB 7.45 [4][5][8] Core Views - XCMG is expected to achieve **high single-digit revenue growth** in 2025, with domestic revenue growing at a single-digit rate and overseas revenue maintaining double-digit growth [1] - The company anticipates **improved profitability** in 2025 due to better revenue mix and cost control, leading to a year-on-year increase in net profit margin [1] - XCMG plans to continue reducing off-balance sheet receivables in 2025, indicating a focus on financial health [1] - Overseas inventory levels are reported to be healthy, with an average of around **1 month of inventory** [1] Domestic Market Outlook - Domestic excavator sales are expected to grow at a **double-digit rate** in 2025, driven by infrastructure projects and improved operating hours [2] - Small excavator sales are projected to maintain strong growth, while medium excavator sales are expected to improve [2] - However, demand for concrete machinery, cranes, and aerial work platforms is expected to remain weak in 2025 [2] Overseas Market Outlook - Overseas revenue is forecasted to grow at a **double-digit rate** in 2025, following a similar performance in 2024 [3] - The fastest growth is expected in **Europe, America, and Australia**, primarily due to a low base effect [3] - Asia, particularly Indonesia, is also expected to contribute to strong growth, while Latin America may see a slowdown but still achieve double-digit growth [3] - Mining machinery and aerial work platforms are likely to experience robust growth, with mining machinery benefiting from increased market share due to competitive pricing [3] Financial Metrics - The company's valuation is based on a **12.0x 2025E PE ratio**, with a target price of RMB 8.40 [4] - XCMG's market capitalization is RMB 88.0 billion (USD 12.0 billion), with a P/B ratio of 1.5x and net debt/EBITDA of 0.5x as of 12/24E [5] - The company's EBIT margin is expected to improve from 7.6% in 2021 to 12.9% by 2028E, reflecting stronger profitability [7] Company Background - XCMG is a leading brand in China's construction machinery industry, specializing in products such as cranes, earthmoving machinery, and road construction equipment [9] - The company holds the **top market share** in domestic sales of truck cranes and truck-mounted cranes and is one of the largest exporters of construction machinery in China [9]