Zoomlion(000157) 浙商证券·2024-06-30 02:02Investment Rating - The report maintains a "Buy" rating for the company [6][9]. Core Views - The company is a leading player in the Chinese engineering machinery sector, with a strong international presence and product diversification. It has shown significant growth in revenue and net profit, with expectations for continued upward trends in the coming years [2][3][19]. - The company's overseas revenue has been growing rapidly, with a compound annual growth rate (CAGR) of 67% from 2020 to 2023, and it is expected to continue to expand its market share internationally [2][3]. - New product categories, particularly in earthmoving and aerial work machinery, are experiencing rapid growth, contributing to the company's overall revenue increase [3][4]. Summary by Sections Company Overview - The company has undergone mixed-ownership reform, enhancing operational vitality and establishing itself as a leader in the engineering machinery industry, covering 18 major categories and entering over 140 countries [2][19]. - In 2023, the company achieved a revenue of 47.075 billion yuan, a year-on-year increase of 13%, and a net profit of 3.506 billion yuan, up 52% from the previous year [2][21]. International Market Expansion - The company's overseas revenue accounted for 48% of total revenue in Q1 2024, with a year-on-year growth of 53% [2][3]. - The company has established over 30 primary business airports and more than 350 secondary outlets globally, supporting its international growth strategy [2]. Product Development and Growth - The company has seen significant growth in its earthmoving and aerial work machinery segments, with revenues increasing by 89.3% and 24.2% respectively in 2023 [3]. - The agricultural machinery segment is also poised for growth, with the domestic market size reaching 397.7 billion yuan in 2023, indicating substantial potential for the company [3]. Financial Projections - The company is projected to achieve revenues of 56.165 billion yuan, 68.926 billion yuan, and 86.164 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 4.531 billion yuan, 6.020 billion yuan, and 7.694 billion yuan [5][9]. - The expected price-to-earnings (P/E) ratios for the next three years are 14, 11, and 9, indicating a favorable valuation outlook [4][9]. Industry Outlook - The engineering machinery industry is expected to gradually recover, with domestic demand stabilizing and international market share continuing to rise [2][27]. - The report highlights the cyclical nature of the industry, with projections indicating a rebound in excavator sales starting in 2024, driven by infrastructure investments and equipment upgrades [30][35].