Zoomlion(SZ:000157) SINOLINK SECURITIES·2024-10-31 06:36Investment Rating - The report maintains an "Accumulate" rating for Zoomlion Heavy Industry Science and Technology Co., Ltd. (000157.SZ) [1] Core Views - The company reported a revenue of 34.386 billion RMB for Q3 2024, a year-on-year decline of 3.18%, while the net profit attributable to shareholders was 3.139 billion RMB, a year-on-year increase of 9.95% [1] - The company's overseas revenue accounted for nearly 50%, significantly enhancing profitability, with a gross margin of 28.52% and a net margin of 9.65% in Q3 2024, both showing improvements year-on-year [1] - The diversification of products, particularly in earth-moving machinery, high-altitude machinery, and agricultural machinery, has been rapid, with significant revenue growth in these segments [1] - The company has achieved a more diversified regional structure in overseas markets, reducing reliance on its three main regions, and has made breakthroughs in developed markets like the EU and North America [1] - The company is committed to high-quality development, evidenced by a reduction in inventory and improvements in the debt-to-asset ratio [1] Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 9.850 billion RMB, down 13.89% year-on-year, and a net profit of 0.851 billion RMB, up 4.42% year-on-year [1] - The company expects revenues of 50.933 billion RMB, 62.003 billion RMB, and 74.929 billion RMB for 2024, 2025, and 2026 respectively, with net profits projected at 3.895 billion RMB, 5.095 billion RMB, and 6.547 billion RMB [3] Product Development - The company has seen significant growth in its product lines, with earth-moving machinery, high-altitude machinery, and agricultural machinery generating revenues of 3.516 billion RMB, 3.955 billion RMB, and 2.343 billion RMB respectively in H1 2024, marking year-on-year increases of 19.89%, 17.75%, and 112.51% [1] Market Expansion - The overseas market revenue reached 12.048 billion RMB in H1 2024, a year-on-year increase of 43.90%, with the overseas revenue proportion rising to 49.10%, an increase of 11.06 percentage points compared to the end of 2023 [1] - The company has diversified its overseas market presence, with the revenue share from its three main regions decreasing to around 36% [1] Quality of Development - The inventory was reduced to 22.424 billion RMB in Q3 2024, a decrease of 1.423 billion RMB from the end of Q2 2024, and the debt-to-asset ratio improved to 53.25%, down 1.74 percentage points from the mid-year report [1]