SHANTUI(SZ:000680) Tianfeng Securities·2024-10-07 04:00Investment Rating - The report initiates coverage with a "Buy" rating for the company [5][3]. Core Views - The company is a leading player in the domestic bulldozer and road construction machinery industry, with a diverse product range and a strong export performance, achieving over 55% of its revenue from overseas markets in the first half of 2024 [3][19]. - The company has a stable financial outlook, with projected net profits for 2024-2026 expected to grow at rates of 24.6%, 20.4%, and 19.2% respectively, indicating a robust growth trajectory [3][4]. Summary by Sections Company Overview - The company has over 40 years of experience in the engineering machinery sector, focusing on technological innovation to establish a leading position in the market [12][15]. - It offers a wide range of products, including bulldozers, excavators, loaders, and concrete machinery, with a strong emphasis on export markets [15][19]. Market Position - The company holds approximately 19% of the global bulldozer market, with the top five manufacturers controlling over 80% of the market share [2][3]. - The domestic market share is even more pronounced, with the company commanding 66.53% of the market, indicating a strong competitive position [2][3]. Growth Strategy - The company is actively restructuring its sales strategy to increase export revenues, which have significantly contributed to its growth [3][21]. - It has effectively integrated resources within the Shandong Heavy Industry Group, enhancing its production efficiency and competitive advantage [3][19]. Financial Performance - In 2023, the company achieved a revenue of over 10 billion yuan, with a year-on-year growth of 33.81% in the first half of 2024 [19][4]. - The projected net profit for 2024 is estimated at 953.44 million yuan, reflecting a year-on-year increase of 24.56% [4][3]. Valuation Metrics - The company is currently valued at a price-to-earnings (P/E) ratio of 13.2x for 2024, which is considered advantageous compared to its peers [3][4]. - The target market capitalization is set at 171.72 billion yuan, with a target price of 11.45 yuan per share [3][5].