LIUGONG(000528) 东吴证券·2025-01-02 05:37Investment Rating - Buy (Maintained) [8][19] Core Views - The company is expected to achieve revenue of 34.6 billion yuan in 2025, with a net profit margin increasing by more than one percentage point [8] - Revenue growth of 15% and net profit growth of 35% are projected for 2025, driven by supply, production, and product structure improvements [8] - The company's mixed-ownership reform has enhanced operational quality, with equity incentives and private placements strengthening competitiveness [9] - A second share buyback for equity incentives demonstrates long-term confidence and supports sustainable performance [18] Financial Highlights - 2025 revenue is forecasted at 34.6 billion yuan, with net profit reaching 2.1 billion yuan, a 35% year-on-year increase [8] - ROE is expected to rise from 5.25% in 2023 to 12.74% in 2026 [7] - P/E ratio is projected to decrease from 26.36x in 2023 to 7.91x in 2026, indicating improving valuation metrics [7] - Net profit margin is expected to increase from 3.15% in 2023 to 7.39% in 2026 [22] Operational Improvements - Mixed-ownership reform has led to capacity expansion, smart factory upgrades, and increased employee motivation [9] - Equity incentives have been granted to 974 executives and core technical staff, focusing on operational quality [9] - Private placement funds of 3 billion yuan have been allocated for factory upgrades, capacity expansion, and R&D [9] Market Performance - The company's stock price has shown strong performance relative to the CSI 300 index [11] - Current market capitalization stands at 24.35 billion yuan, with a P/B ratio of 1.37x [12] Future Outlook - The company has set a clear 2025 financial target, reflecting confidence in achieving high growth [8] - Long-term development is supported by strategic initiatives, including equity incentives and capacity upgrades [9][18]