XCMG(SZ:000425) Guolian Securities·2024-08-29 10:03Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company experienced a slight decline in overall revenue in H1 2024, but there is optimism regarding domestic equipment upgrades and overseas market demand. The growth of the company's new energy products and specialized products is expected to contribute positively [11][12] - Revenue projections for the company from 2024 to 2026 are estimated at 99.524 billion, 107.487 billion, and 117.855 billion yuan respectively, with net profits of 6.24 billion, 7.527 billion, and 9.567 billion yuan, indicating a CAGR of 21.56% [11][12] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 49.632 billion yuan, a year-on-year decrease of 3.21%. The net profit attributable to the parent company was 3.706 billion yuan, an increase of 3.24% year-on-year [11] - The second quarter of 2024 saw revenue of 25.458 billion yuan, down 7.04% year-on-year, while net profit was 2.105 billion yuan, up 1.89% year-on-year [11] Overseas Business - The company's overseas revenue reached a historical high, accounting for 44% of total revenue, which is an increase of 3.37 percentage points year-on-year. Domestic revenue was 27.731 billion yuan, down 8.72% year-on-year, while overseas revenue was 21.901 billion yuan, up 4.80% year-on-year [12] Product Performance - High-end products saw revenue growth of over 10% year-on-year, making up more than 32% of total revenue, an increase of 4 percentage points year-on-year. The gross margin and net margin were 22.89% and 7.52% respectively, with improvements in the gross margin of mining machinery [12] Future Outlook - The company is expected to benefit from the gradual recovery of the domestic engineering machinery industry and the diversification of its product offerings, which will likely enhance overseas business growth [11][12]