XCMG(000425) EBSCN·2024-11-03 09:13Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Views - The company's net profit is accelerating, with a continuous recovery in profitability driven by high-end and internationalization trends [2][3]. - The company achieved a revenue of 68.726 billion yuan in the first three quarters of 2024, a year-on-year decrease of 4.11%, while the net profit attributable to the parent company was 5.309 billion yuan, a year-on-year increase of 9.71% [1][4]. - The gross margin improved to 23.63%, up 0.73 percentage points year-on-year, and the net margin reached 7.74%, an increase of 1.03 percentage points year-on-year [1]. Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of 19.094 billion yuan, down 6.37% year-on-year, but the net profit attributable to the parent company rose by 28.28% to 1.603 billion yuan [1]. - The gross margin for Q3 was 25.52%, an increase of 2.53 percentage points year-on-year, and the net margin was 8.31%, up 1.95 percentage points year-on-year [1]. High-end and Internationalization Trends - The company's high-end product revenue grew by over 10% year-on-year in H1 2024, accounting for over 32% of total revenue, an increase of 4 percentage points year-on-year [2]. - The overseas market revenue reached 21.9 billion yuan in H1 2024, a year-on-year increase of 4.8%, with overseas revenue accounting for 44% of total revenue, up 3.4 percentage points year-on-year [2]. Industry Outlook - The domestic excavator sales showed a recovery trend, with sales of 73,900 units from January to September 2024, a year-on-year increase of 8.62% [3]. - The report anticipates that infrastructure investment will stabilize and recover, benefiting the engineering machinery industry, with the company positioned to gain significantly as a leading player [3].