XCMG(000425) 长江证券·2024-11-12 14:54Investment Rating - The investment rating for the company is "Buy" and is maintained [10]. Core Views - The company has shown significant improvement in operational quality, with expectations for accelerated growth in exports and domestic excavator business [3][8]. - The company's profitability continues to enhance, with gross margin and net margin increasing by 2.54 percentage points and 1.95 percentage points year-on-year, respectively, benefiting from a higher proportion of overseas revenue, product structure optimization, and ongoing cost control [3][7]. - The company is positioned as a leading player in the domestic mining machinery sector, with substantial growth potential [3][8]. Summary by Relevant Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 68.726 billion yuan, a year-on-year decrease of 4.11%, and a net profit attributable to shareholders of 5.309 billion yuan, an increase of 9.71% [3]. - In Q3 2024, the company reported revenue of 19.094 billion yuan, down 6.37% year-on-year, but net profit attributable to shareholders rose by 28.28% to 1.603 billion yuan [3][8]. Market Outlook - The domestic excavator market is expected to grow well, with industry sales increasing by 20% year-on-year in Q3 2024, and the company is anticipated to outperform this growth due to its strong position in the mid-to-large excavator segment [6][8]. - The overseas market is showing signs of recovery, with excavator exports turning positive for two consecutive months in August and September 2024, and significant increases in exports of other machinery [6][8]. Business Segments - The mining machinery segment is projected to grow rapidly, with a notable contract won from Rio Tinto for a mining project in Guinea, valued at nearly 800 million yuan, expected to contribute to growth in Q4 [5][8]. - The company’s gross margin for mining machinery reached 24.11% in the first half of 2024, an increase of 7.67 percentage points year-on-year, indicating strong profitability in this segment [5][8].