XCMG(000425) Guotou Securities·2024-08-29 05:30Investment Rating - The investment rating for the company is "Buy-A" with a 12-month target price of 7.8 CNY, while the current stock price is 6.68 CNY [4]. Core Views - The company has demonstrated steady profit growth and is committed to high-quality development, despite a slight decline in revenue due to fluctuations in domestic demand [2][7]. - The company’s revenue for the first half of 2024 was 49.632 billion CNY, a year-on-year decrease of 3.21%, while the net profit attributable to shareholders was 3.706 billion CNY, an increase of 3.24% [2]. - The company is focusing on optimizing its product structure and enhancing its international presence, which has helped maintain revenue stability [2][7]. Summary by Sections Financial Performance - In H1 2024, the company achieved a gross margin of 22.89% and a net margin of 7.52%, with slight improvements year-on-year [3][7]. - The company’s revenue breakdown by product shows varied performance: - Cranes: 10.096 billion CNY, down 15.23% - Earth-moving machinery: 13.908 billion CNY, up 6.98% - Concrete machinery: 5.156 billion CNY, down 3.45% - Aerial work machinery: 4.527 billion CNY, down 11.5% - Mining machinery: 3.54 billion CNY, down 16.43% [2]. Regional Performance - Domestic revenue was 27.731 billion CNY, down 8.72%, while overseas revenue was 21.901 billion CNY, up 4.8%, indicating a shift towards international markets [2]. Future Projections - Revenue projections for 2024-2026 are 96.6 billion CNY, 104.29 billion CNY, and 115.8 billion CNY, with corresponding net profits of 6.49 billion CNY, 7.7 billion CNY, and 9.67 billion CNY [7][9]. - The expected growth rates for revenue are 4%, 8%, and 11% for the respective years [7]. Market Position - The company maintains a strong market position in the engineering machinery sector, supported by ongoing reforms and international expansion efforts [7][9].