XCMG(SZ:000425) ZHESHANG SECURITIES·2024-08-29 04:03Investment Rating - The investment rating for the company is maintained as "Buy" [4] Core Insights - The company's mid-year performance met expectations, with operating cash flow increasing by 11% year-on-year. For the first half of 2024, total revenue was 49.63 billion, a decrease of 3.2% year-on-year, while net profit attributable to shareholders was 3.71 billion, an increase of 3.2% year-on-year. The gross margin was 22.9%, up by 0.03 percentage points, and the net margin was 7.5%, up by 0.7 percentage points [1][2] - The company's core products continue to maintain a leading position, with strategic emerging industries such as earth-moving machinery and new energy products experiencing rapid growth. In the first half of 2024, revenue from the earth-moving machinery segment increased by 7% year-on-year, while revenue from new energy products grew by 27% [1][2] - The company's internationalization efforts are accelerating, with overseas revenue reaching a historical high of 27.74 billion, accounting for 44% of total revenue, an increase of 3.4 percentage points year-on-year. The gross margin for overseas sales was 24.4%, higher than domestic sales by 2.7 percentage points [1][2] Financial Summary - The company's balance sheet continues to improve, with a debt-to-asset ratio of 63.3%, down by 1.2 percentage points from the end of 2023. Inventory decreased by 2.16 billion, a decline of 7%, and the balance of financing lease repurchase obligations was 58.3 billion, down by approximately 4.6 billion, a decrease of 7% [2] - Revenue forecasts for 2024-2026 are projected at 100.8 billion, 117.4 billion, and 144.4 billion, representing year-on-year growth of 9%, 16%, and 23% respectively. Net profit attributable to shareholders is expected to be 6.59 billion, 8.18 billion, and 10.34 billion, with corresponding P/E ratios of 12, 10, and 8 [2][3]