XCMG(SZ:000425) EBSCN·2024-09-03 04:39Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company's net profit shows stable growth, with a year-on-year increase of 3.2% to 3.71 billion yuan in H1 2024, despite a 3.2% decline in operating revenue to 49.63 billion yuan [2][5]. - The company is expected to benefit from equipment renewal demand driven by government policies aimed at phasing out older, high-pollution machinery [3]. - The company has actively expanded its international market presence, achieving a 4.8% year-on-year increase in overseas revenue, which now accounts for 44% of total revenue [4]. Summary by Sections Financial Performance - In H1 2024, the company achieved operating revenue of 49.63 billion yuan, a decrease of 3.2% year-on-year, while net profit rose to 3.71 billion yuan, an increase of 3.2% [2]. - The operating cash flow showed a positive trend with a net inflow of 1.71 billion yuan, up 11.0% year-on-year [2]. Product Revenue Breakdown - The revenue from various machinery segments showed mixed results: - Lifting machinery revenue decreased by 15.2% to 10.1 billion yuan - Earth-moving machinery revenue increased by 7.0% to 13.91 billion yuan - Concrete machinery revenue decreased by 3.5% to 5.16 billion yuan - A notable increase of 26.8% in revenue from new energy products was reported [3]. International Market Expansion - The company has established a comprehensive international operation system, with overseas revenue reaching 21.9 billion yuan, representing 44% of total revenue, an increase of 3.4 percentage points year-on-year [4]. - Significant growth was noted in specific product categories, with all-terrain cranes and excavators seeing substantial increases in overseas sales [4]. Future Profitability Projections - The report forecasts net profits for 2024, 2025, and 2026 to be 6.61 billion yuan, 8.26 billion yuan, and 10.08 billion yuan respectively, with corresponding EPS of 0.56 yuan, 0.70 yuan, and 0.85 yuan [5][6].