XCMG(SZ:000425) HUAXI Securities·2024-09-06 06:03Investment Rating - The report assigns a "Buy" rating for the company [1][2]. Core Insights - The company has shown steady revenue growth with a reported revenue of 49.63 billion yuan in the first half of 2024, a year-on-year decrease of 3.21%, while the net profit attributable to shareholders increased by 3.2% to 3.706 billion yuan [1]. - International revenue has surpassed 44%, with a total of 21.9 billion yuan in international sales, reflecting a growth of 4.8% year-on-year [1]. - The company is focusing on high-quality development, with a net cash flow from operating activities of 1.706 billion yuan, an increase of 11% year-on-year, and a net profit margin reaching 8.3%, the highest in nearly a decade [1][4]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 49.63 billion yuan, a decrease of 3.21% year-on-year, while the net profit attributable to shareholders was 3.706 billion yuan, an increase of 3.2% [1]. - The company’s gross profit margin for overseas business reached 24.4%, up 1.2 percentage points from the previous year [1]. Business Segments - Earthmoving machinery revenue reached 13.9 billion yuan, with a growth rate of 6.98% year-on-year, while other segments like cranes and concrete machinery faced declines [1][4]. - The company’s excavators saw a 16% increase in overseas sales, and concrete equipment revenue doubled in international markets [1][4]. Future Outlook - The company forecasts revenues of 97.07 billion yuan, 106.68 billion yuan, and 117.63 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 6.37 billion yuan, 8.08 billion yuan, and 10.65 billion yuan [5][6]. - The expected EPS for 2024, 2025, and 2026 is projected to be 0.54 yuan, 0.68 yuan, and 0.90 yuan respectively, with PE ratios of 11.8, 9.3, and 7.1 [5][6].