SHANTUI(000680) Soochow Securities·2024-11-29 00:19Investment Rating - The report assigns a "Buy" rating for the company for the first time [1]. Core Views - The company is a leading domestic bulldozer manufacturer, expanding into a full range of products and international markets, which is expected to release profit elasticity [1]. - The company's overseas expansion significantly enhances profitability, with short-term focus on emerging markets and long-term potential in high-end markets [1]. - The company is extending its platform to include excavators and loaders, with a second growth curve expected to rise rapidly [1]. Summary by Sections Company Overview - The company, founded in 1952, has become a leader in bulldozers with over 60% market share domestically and 20% globally, leveraging technology from Komatsu [1][112]. - The company has diversified its product offerings to include excavators, loaders, and road rollers, aiming for a comprehensive range of engineering machinery [1][112]. Financial Performance - The company’s revenue from 2020 to 2023 has a CAGR of 14%, with export revenue growing at a CAGR of 68%, contributing significantly to revenue growth [1][30][34]. - The net profit attributable to the parent company has a CAGR of 97% from 2020 to 2023, with sales gross margin increasing from 13.7% to 18.4% [1][38][131]. - The forecast for net profit from 2024 to 2026 is 1.06 billion, 1.39 billion, and 1.54 billion yuan, respectively, with corresponding year-on-year growth rates of 38.5%, 30.8%, and 10.9% [1]. Market Dynamics - The bulldozer market is relatively small due to its single downstream application, with the domestic market estimated at 2 billion yuan and the global market at 22.5 billion yuan [1]. - The company’s overseas revenue structure is improving, with significant growth expected from emerging markets and high-end markets in Europe and North America [1][124]. Product Development - The company is enhancing its product matrix by extending into excavators and loaders, with a notable market share of 4% in excavators and 12% in electric loaders as of 2024H1 [1][115][138]. - The company has increased its R&D spending from 2.5% to 4.3% of revenue from 2017 to 2023, focusing on high-power, multi-category, electrification, and intelligence [1][138]. Strategic Positioning - The company benefits from strong support from Shandong Heavy Industry Group, which provides brand and supply chain advantages [1][119]. - The management team has a solid technical background, enhancing the company's R&D capabilities and innovation potential [1][144].