GOLDEN SUN SECURITIES·2024-09-22 06:41Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company, Zoomlion Heavy Industry Science and Technology Co., Ltd., is a leading player in the domestic engineering machinery sector, with a diversified product line and successful global expansion [2][15]. - In 2023, the company achieved a total revenue of 47.075 billion yuan, representing a year-on-year growth of 13.08%, and a net profit attributable to shareholders of 3.506 billion yuan, up 52.04% year-on-year [2][15]. - The report highlights the company's strong performance in traditional businesses while emphasizing the growth potential in emerging sectors such as high-altitude machinery, excavators, agricultural machinery, and mining machinery [2][3][6]. Summary by Sections 1. Company Overview - Zoomlion is recognized as a domestic engineering machinery giant, with a product range that includes 18 categories, 105 series, and 636 models, focusing on high-tech equipment and new building materials [15][17]. - The company has undergone significant development phases since its establishment in 1992, including listing on the A-share market and expanding its global footprint through acquisitions and partnerships [15][16]. 2. Business Performance - Traditional products like cranes and concrete machinery continue to show stable growth, while new businesses are emerging as new growth drivers [2][3]. - The crane business generated revenue of 19.291 billion yuan in 2023, with a slight year-on-year increase of 1.64%, while its gross margin improved by 8.13 percentage points to 31.04% [2][3]. - The concrete machinery segment reported revenue of 8.598 billion yuan, with a gross margin of 22.92%, reflecting a recovery [2][3]. 3. Emerging Business Segments - High-altitude machinery revenue reached 5.707 billion yuan in 2023, growing 24% year-on-year, positioning the company as a leader in this segment [3]. - The earth-moving machinery segment, primarily excavators, saw a remarkable revenue increase of 89.32% to 6.648 billion yuan, with a focus on high-value mid-to-large excavators [3][6]. - Agricultural machinery revenue was 2.092 billion yuan, with a gross margin of 11.74%, indicating a strategic focus on smart agriculture [6][17]. 4. Market Outlook - The domestic engineering machinery market is expected to stabilize and potentially recover in 2024-2025, driven by policy support and demand for equipment upgrades [7]. - The overseas market presents significant growth opportunities, with the company leveraging its end-to-end digital sales system and local production capabilities to enhance its global presence [7][11]. 5. Financial Projections - The report forecasts that the company's total revenue will reach 56.180 billion yuan in 2024, with a growth rate of 19.3%, and net profit attributable to shareholders will be 4.543 billion yuan, reflecting a growth rate of 29.6% [8][9].