SANY(SH:600031) Huaan Securities·2024-09-12 06:08Investment Rating - The investment rating for the company is "Buy" (首次) [1] Core Views - The company has established itself as a leader in the engineering machinery market with a diverse product range, including concrete machinery, excavators, and cranes, achieving high market recognition [3][15] - The engineering machinery industry is expected to stabilize and recover in 2024, driven by domestic demand and continued growth in overseas markets [3][31] - The company possesses four key competitive advantages: strong core product advantages, advancements in electrification, accelerated overseas expansion, and a focus on digital transformation [3][31] Summary by Sections Company Overview - Founded in 1989, the company has evolved from a small factory to a leading enterprise in the domestic engineering machinery sector, with a rich product line and significant market recognition [3][9] - The company has a stable shareholding structure, with the actual controller holding a significant portion of shares, ensuring stability in management [11][12] Industry Outlook - The engineering machinery industry has entered a down cycle since 2021, but signs of recovery are emerging, particularly in excavator sales, which have shown positive growth in early 2024 [31][33] - Domestic demand is expected to stabilize due to improvements in real estate and infrastructure projects, while overseas markets continue to be a major growth driver [3][31] Competitive Advantages - The company has a clear advantage in core products, with the highest market share in excavators and a leading position in concrete machinery globally [3][15] - The company has committed to electrification, with significant revenue from electric and hybrid products, positioning itself as a leader in the new energy engineering equipment sector [3][31] - The overseas revenue share has increased from 25.1% in 2018 to 60.5% in 2023, indicating successful international expansion [3][31] - The company is advancing its digital transformation, enhancing its core competitiveness through smart products and manufacturing [3][31] Financial Projections - Revenue is projected to grow from 786.98 billion yuan in 2024 to 983.56 billion yuan in 2026, with corresponding net profits expected to rise from 58.33 billion yuan to 100.11 billion yuan during the same period [3][4] - The company's earnings per share (EPS) are forecasted to increase from 0.69 yuan in 2024 to 1.18 yuan in 2026, with a current price-to-earnings (P/E) ratio of 23, 16, and 13 for the respective years [3][4]