SINOLINK SECURITIES·2024-10-18 13:03Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of 5% to 15% over the next 6 to 12 months [10]. Core Insights - The company announced a share buyback plan to enhance earnings per share and demonstrate confidence in long-term performance [3][4]. - The company reported significant revenue growth in various machinery segments, with excavators and high machines showing increases of 19.89% and 17.75% year-on-year, respectively [4]. - The diversification of revenue sources is evident, with a reduction in reliance on traditional markets, as the share of revenue from the three main grain regions has decreased to around 36% [4]. - The company is focused on high-quality development, with improvements in accounts receivable, inventory, and a decrease in the debt-to-asset ratio [4]. Summary by Sections Financial Performance - The company expects revenues of 50.93 billion, 62.80 billion, and 75.76 billion RMB for 2024, 2025, and 2026, respectively, with net profits projected at 3.89 billion, 5.19 billion, and 6.65 billion RMB [4][7]. - The diluted earnings per share are forecasted to be 0.449, 0.598, and 0.767 RMB for the years 2024, 2025, and 2026 [7]. Operational Analysis - The company plans to repurchase up to 10% of its issued H shares, which will be fully canceled, thereby increasing earnings per share and shareholder returns [4]. - The company has achieved a reduction in accounts receivable and inventory, indicating improved asset quality [4]. Market Position - The company has successfully diversified its market presence, achieving breakthroughs in developed markets such as the EU and North America [4]. - The report highlights the company's commitment to a diversified product strategy, which has helped mitigate cyclical impacts [4].