LIUGONG(SZ:000528) Guotou Securities·2024-07-15 03:00Investment Rating - The investment rating for the company is "Buy - A" with a target price of 13.14 CNY, corresponding to a dynamic PE of 18X for 2024 [4][7]. Core Insights - The company is expected to maintain high growth in performance, with a gross margin of 20.82% and a net margin of 3.42% for 2023, showing year-on-year increases of approximately 4 percentage points and 1 percentage point respectively [2]. - The company is focusing on "profit growth, business growth, and capability growth" as its core tasks for 2024, aiming for significant improvements in operational efficiency and profitability [2]. - The electric loader penetration rate is rapidly increasing, with sales growth of electric loaders expected to continue leading the industry [3]. - The company has adjusted its revenue forecasts for 2024-2026, expecting revenues of 304.1 billion CNY, 345.3 billion CNY, and 404.3 billion CNY, with corresponding net profits of 14.5 billion CNY, 20.0 billion CNY, and 26.7 billion CNY [3]. Financial Performance Summary - The company's revenue for 2023 is projected at 275.2 billion CNY, with net profit expected to reach 8.7 billion CNY [8]. - The earnings per share (EPS) for 2024 is estimated to be 0.73 CNY, with a net profit margin of 4.8% [10][30]. - The company’s return on equity (ROE) is projected to improve from 5.2% in 2023 to 8.3% in 2024 [30]. Market Position and Trends - The company holds the largest market share in the domestic loader market and has successfully launched electric and "National IV" products [3]. - The domestic demand for earth-moving equipment is recovering, and the company is expected to benefit from the positive trends in the excavator and loader markets [16].