LIUGONG(SZ:000528) Tai Ping Yang·2024-09-03 00:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.1, compared to the last closing price of 9.58 [1]. Core Insights - The company's performance aligns with the forecast range, driven by reforms that enhance profitability [1]. - In H1 2024, the company achieved revenue of 16.06 billion, a year-on-year increase of 6.81%, and a net profit attributable to shareholders of 984 million, up 60.20% year-on-year [2]. - The core business of earth-moving machinery shows strong demand, with domestic excavator sales turning positive with a year-on-year growth of 29.5% [2]. - The company is advancing its internationalization strategy, with overseas revenue reaching 7.71 billion, an increase of 18.82% year-on-year [2]. - The company's gross margin improved to 23.40%, up 3.26 percentage points year-on-year, and the net profit margin increased to 6.33%, up 2.21 percentage points year-on-year [2]. Financial Projections - Revenue projections for 2024-2026 are 30.19 billion, 35.00 billion, and 41.16 billion respectively, with net profits of 1.55 billion, 2.10 billion, and 2.71 billion [3]. - The expected growth rates for revenue are 9.7% in 2024, 15.9% in 2025, and 17.6% in 2026 [3]. - The projected diluted earnings per share for 2024-2026 are 0.78, 1.06, and 1.37 respectively, with corresponding price-to-earnings ratios of 12.2, 9.0, and 7.0 [3].