Jiangsu Hengli Hydraulic CO.(601100) 中邮证券·2024-08-28 09:30Investment Rating - The report maintains a "Buy" rating for the company, with an expected stock price increase of over 20% compared to the benchmark index over the next six months [8]. Core Views - The company reported a revenue of 4.833 billion yuan for the first half of 2024, representing an 8.56% year-on-year increase, while the net profit attributable to shareholders was 1.288 billion yuan, a 0.71% increase [4]. - The second quarter of 2024 saw a significant revenue growth of 22% year-on-year, with net profit increasing by 5% [4]. - The company is experiencing a recovery in domestic excavator sales, with a year-on-year increase of 6.23% in the first seven months of 2024 [4]. - The diversification strategy has shown remarkable results, with sales of non-standard oil cylinders increasing by 21.53% and non-excavator pump and valve sales growing by 24.30% in the first half of 2024 [4]. - The company is actively expanding its overseas market presence, achieving a 15.29% increase in overseas revenue in the first half of 2024 [4]. Financial Performance - The company expects revenues of 9.9 billion yuan, 11.781 billion yuan, and 13.782 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 10.19%, 19.00%, and 16.99% [5]. - The net profit attributable to shareholders is projected to be 2.674 billion yuan, 3.213 billion yuan, and 3.831 billion yuan for the same years, with growth rates of 7.01%, 20.15%, and 19.24% [5]. - The company's price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are expected to be 24.13, 20.08, and 16.84, respectively [5]. Market Trends - The excavator industry is showing signs of recovery, with an upward trend in the replacement cycle expected to become more apparent [4]. - The company's focus on "electrification" and industrial automation is progressing, with ongoing projects in linear actuators and other electric machinery [4].