SANY(600031) 国联证券·2024-09-01 08:03Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company continues to face pressure on overall revenue, but there is optimism regarding domestic equipment upgrades and overseas market demand. The company is expected to see growth in road machinery products and improved operational efficiency from the implementation of smart manufacturing factories. Revenue projections for 2024-2026 are estimated at 77.29 billion, 86.15 billion, and 98.88 billion yuan, with net profits of 5.68 billion, 6.54 billion, and 8.16 billion yuan respectively, reflecting a CAGR of 21.68% [2][7] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 39.06 billion yuan, a year-on-year decrease of 2.16%, while net profit rose by 4.8% to 3.573 billion yuan. In Q2 2024, revenue was 21.23 billion yuan, down 3.16% year-on-year, with net profit increasing by 5.28% to 1.993 billion yuan [7] - Revenue breakdown by product shows concrete machinery at 7.96 billion yuan (-5.22%), excavators at 15.21 billion yuan (+0.43%), and road machinery at 1.58 billion yuan (+15.74%). Domestic revenue was 14.29 billion yuan (-11.68%), while international revenue was 23.54 billion yuan (+4.79%), with overseas sales accounting for 62.23% of total revenue [7] Profitability - The company's gross margin and net margin for H1 2024 were 28.24% and 9.42%, respectively, showing increases of 0.03% and 0.57 percentage points year-on-year. The gross margins for various segments were as follows: concrete machinery 22.16%, excavators 34.19%, and road machinery 29.19% [7] - The company’s profitability is expected to improve due to growth in overseas sales and cost reduction measures. The outlook for road machinery and the rollout of smart manufacturing factories is anticipated to enhance operational efficiency [7] Future Projections - Revenue forecasts for 2024-2026 are 77.29 billion, 86.15 billion, and 98.88 billion yuan, with net profits projected at 5.68 billion, 6.54 billion, and 8.16 billion yuan, respectively. The expected EPS for the same period is 0.67, 0.77, and 0.96 yuan per share [2][7]