SHANTUI(000680) 国投证券·2024-11-15 12:23Investment Rating - The investment rating for the company is "Buy-A" with a 12-month target price of 11.2 CNY, compared to the current stock price of 9.21 CNY [4]. Core Insights - The company plans to acquire 100% equity of Shandong Heavy Industry Group's subsidiary, Shandong Construction Machinery, for 1.841 billion CNY, which will enhance its excavator business segment [1][2]. - The acquisition is expected to create synergies between the company's existing product lines and Shandong Construction Machinery's excavators, improving overall competitiveness [2][6]. - Shandong Construction Machinery has shown strong financial performance, with revenues of 2.426 billion CNY and net profits of 0.75 billion CNY for the first three quarters of 2024, exceeding the entire revenue and profit of 2023 [3][7]. Financial Projections - Revenue projections for the company from 2024 to 2026 are 13.44 billion CNY, 15.81 billion CNY, and 18.2 billion CNY, with growth rates of 27.5%, 17.7%, and 15.1% respectively [7][8]. - Net profit estimates for the same period are 0.95 billion CNY, 1.21 billion CNY, and 1.43 billion CNY, with growth rates of 24.6%, 26.5%, and 18.7% respectively [7][8]. - The company is expected to maintain a price-to-earnings (PE) ratio of 14.5X, 11.5X, and 9.7X for the years 2024, 2025, and 2026 respectively [7][8]. Market Position and Strategy - Shandong Construction Machinery holds a market share of 4.03% in the excavator segment, with a competitive position in the industry [2]. - The acquisition is part of a broader strategy to resolve competition issues within the Shandong Heavy Industry Group and to potentially pursue further asset restructuring in the future [6][7]. - The company aims to leverage its leading position in the engineering machinery sector to enhance its value chain through this acquisition [2][6].