XCMG(SZ:000425) Tianfeng Securities·2024-08-29 00:30Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential upside of over 20% within the next six months [4][11]. Core Insights - The company reported stable performance in its semi-annual report for 2024H1, with revenue of 49.632 billion yuan, a year-on-year decrease of 3.21%, and a net profit attributable to shareholders of 3.706 billion yuan, an increase of 3.24% year-on-year [1]. - The report highlights the company's advantages in sector layout and overseas expansion, with significant growth in international sales [1][2]. - The company has a comprehensive core component industry layout, supporting differentiated development in its main machinery products [2]. Financial Performance Summary - For 2024H1, the company achieved a gross margin of 22.89%, a slight increase of 0.03 percentage points year-on-year, and a net profit margin of 7.47%, up 0.62 percentage points year-on-year [1]. - The company’s revenue is projected to grow to 103.54 billion yuan in 2024, with a corresponding net profit of 6.543 billion yuan, reflecting a growth rate of 22.84% [3][7]. - The company's earnings per share (EPS) is expected to increase from 0.45 yuan in 2023 to 0.55 yuan in 2024 [3][7]. Product and Regional Performance - The company’s revenue from various machinery segments includes: - Crane machinery: 10.096 billion yuan (down 15.23%) - Earth-moving machinery: 13.908 billion yuan (up 6.98%) - Concrete machinery: 5.156 billion yuan (down 3.45%) [1]. - The company’s international revenue reached 21.9 billion yuan, a year-on-year increase of 4.8%, with an international revenue share of 44% [1][2]. Profitability Forecast - The forecast for net profit attributable to shareholders is 6.543 billion yuan for 2024, 8.133 billion yuan for 2025, and 10.414 billion yuan for 2026, with corresponding price-to-earnings (PE) ratios of 12.06, 9.71, and 7.58 respectively [2][3].