Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [5][6]. Core Views - The company achieved a significant increase in net profit, with a 57.8% year-on-year growth, despite a 2.9% decline in revenue [1]. - The domestic engineering machinery demand is recovering, and the company is expected to benefit from this trend, along with the internationalization and electrification of machinery [5]. - The company is positioned to capitalize on the accelerating trend of electrification in loaders, with electric loader sales increasing by 261.2% in early 2025 [4]. Summary by Sections Financial Performance - In 2024, the company reported revenue of 10.21 billion RMB, a decrease of 2.9% year-on-year, while net profit reached 1.02 billion RMB, up 57.8% [1]. - The gross margin improved to 19.6%, an increase of 2.0 percentage points, and the net margin rose to 10.0%, up 3.8 percentage points [1]. - The company plans to distribute a dividend of 0.13 HKD per share, with a payout ratio of 50% and a dividend yield of approximately 6.4% [1]. Product Performance - Revenue from wheel loaders was 3.93 billion RMB, down 3.1% year-on-year, while mini wheel loaders saw a revenue increase of 5.9% to 160 million RMB, indicating strong demand in agriculture and light construction [2]. - Forklift revenue rose by 1.6% to 3.72 billion RMB, driven by increased demand in the logistics and warehousing sector [2]. - Excavator revenue decreased by 16.1% to 1.06 billion RMB, primarily due to a shift to discount promotion strategies [2]. Market Trends - Domestic sales revenue was 7.02 billion RMB, down 5.7% year-on-year, attributed to weakened demand in the construction sector [3]. - The company’s overseas revenue reached 3.19 billion RMB, a year-on-year increase of 3.8%, with overseas sales accounting for 31.2% of total revenue, up 2.0 percentage points [3]. - The government’s fiscal policies are expected to stimulate infrastructure investment, benefiting downstream equipment demand [3]. Electrification Trend - The sales of electric loaders in early 2025 reached 2,413 units, a remarkable increase of 261.2%, with an electrification rate of 14.5%, up 12.0 percentage points year-on-year [4]. - The company is well-positioned as a leading player in the electric loader market, benefiting from the accelerating electrification trend [4].
中国龙工（03339）：2024年度业绩点评：净利润大幅增长，装载机电动化趋势支撑公司未来成长