Zoomlion(SZ:000157) Changjiang Securities·2024-10-21 01:10Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company plans to repurchase up to 10% of its issued H shares, which will be fully canceled to enhance earnings per share and improve investor returns, thereby boosting confidence in the capital market [6][7] - Following the recovery of excavator domestic sales this year, the company expects an upward cycle for concrete machinery and crane machinery in the coming year, indicating a potential recovery in its traditional business [6][7] - The company is actively expanding into emerging sectors such as earthmoving, aerial work, agricultural machinery, and mining machinery, which are expected to contribute to revenue and profit growth [6][7] - The company's overseas revenue growth is anticipated to outperform the industry due to its increasingly refined global layout and direct sales system [6][7] Summary by Sections Company Announcement - The board has approved a proposal to repurchase H shares, with the repurchase price not exceeding 105% of the average closing price over the previous five trading days [6] Financial Performance - The company has a historical dividend payout rate of approximately 42%, with over 25 dividends distributed since its listing, and cash dividends exceeding 8.3 billion yuan in the last three years, accounting for 52% of net profit [6][7] - The company has conducted large-scale repurchases totaling nearly 4.8 billion yuan over the past five years, excluding the current proposed repurchase [6] Market Outlook - The domestic sales of excavators have shown a recovery, with a year-on-year growth of around 20% from May to September, indicating a clear trend of bottoming out in the excavator industry [6][7] - The company expects to achieve net profits of 3.815 billion yuan and 5.331 billion yuan in 2024 and 2025, respectively, with corresponding price-to-earnings ratios of 15 times and 11 times [7]