Huaan Securities·2024-09-02 16:07Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 24.535 billion yuan in the first half of 2024, an increase of 1.91% year-on-year, with a net profit attributable to shareholders of 2.288 billion yuan, up 12.15% [5] - The company is expanding its overseas market presence, achieving a revenue of 12.048 billion yuan from international operations, which represents a growth of 43.90% and accounts for 49.10% of total revenue [5] - Emerging business segments are accelerating growth, with significant increases in sales across various machinery sectors, including over 19% growth in earthmoving machinery and over 112% in agricultural machinery [5] Financial Performance - The company achieved a gross profit margin of 28.31% and a net profit margin of 10.36% in the first half of 2024, with a weighted average return on equity (ROE) of 3.98% [5] - For the full year projections, the company expects revenues of 56.634 billion yuan in 2024, 66.696 billion yuan in 2025, and 77.785 billion yuan in 2026, with net profits of 4.286 billion yuan, 5.379 billion yuan, and 6.891 billion yuan respectively [6][7] - The diluted earnings per share (EPS) are projected to be 0.49 yuan in 2024, 0.62 yuan in 2025, and 0.79 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 12, 10, and 8 [6][7] Market Strategy - The company is committed to an international development strategy, enhancing its global competitiveness by diversifying its market presence in regions such as Latin America, Africa, and North America [5] - The establishment of over 30 primary business aviation ports and more than 370 secondary points globally has strengthened the company's international sales structure [5] Emerging Business Growth - The company is focusing on the coordinated development of traditional and emerging business segments, with significant sales growth in high-altitude operation machinery and agricultural machinery [5] - The company has successfully optimized its product offerings in traditional machinery sectors while rapidly expanding its portfolio in emerging sectors [5]