SHANTUI(000680) ZHESHANG SECURITIES·2024-12-13 00:15Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The completion of the acquisition of 100% equity in Shandong Heavy Machinery opens up growth opportunities for the excavator business [1] - The company aims to leverage its existing bulldozer sales channels and the advantages of the Shandong Heavy Industry Group platform to rapidly expand its excavator market share [1] - The company has a strong focus on cost reduction and efficiency improvement, which is expected to enhance profitability [1] Summary by Relevant Sections Acquisition Completion - The company announced the completion of the acquisition of 100% equity in Shandong Heavy Machinery, with 95% of the purchase price, amounting to 1.749 billion yuan, already paid [1] - The remaining 5% will be paid after the audit report is issued [1] Excavator Business Potential - The market share of Shandong Heavy Machinery's excavators was 4.03% from January to September 2024 [1] - The company plans to resolve competition issues with other subsidiaries within five years [1] - The unique advantages of the excavators include a 10%-15% fuel saving at the same efficiency and a 15% efficiency increase at the same fuel consumption [1] Bulldozer Market Position - The company ranks third globally in bulldozer sales, with a domestic market share exceeding 70% in 2023 [1] - The export value of tracked bulldozers reached 700 million USD, a 10% increase year-on-year, while the export of high-horsepower bulldozers (over 320 horsepower) increased by 34% [1] Cost Control Measures - The company achieved a cost reduction of 154 million yuan in 2023 through various measures, including group procurement and process improvements [1] Profit Forecast and Valuation - The projected net profits for 2024-2026 are 1.025 billion, 1.451 billion, and 1.895 billion yuan, respectively, with year-on-year growth rates of 34%, 42%, and 31% [2] - The price-to-earnings ratio (PE) for the closing price on December 12 is 14, 10, and 8 for the years 2024, 2025, and 2026, respectively, which is below the industry average [1][2]