SANY(SH:600031) ZHESHANG SECURITIES·2025-04-20 14:03Investment Rating - The investment rating for SANY Heavy Industry is "Buy" [7] Core Views - The company reported a 32% year-on-year increase in net profit attributable to shareholders for 2024, indicating improved profitability [1] - Total revenue for 2024 reached 78.4 billion, a 6% increase year-on-year, with operating cash flow net amounting to 14.8 billion, up 160% [1] - The company has a strong overseas revenue contribution, accounting for 64% of total revenue, with significant growth in various regions [4] Summary by Sections Financial Performance - In 2024, SANY Heavy Industry achieved total revenue of 78.4 billion, a 6% increase year-on-year, and a net profit of 5.98 billion, up 32% [1] - The operating cash flow for 2024 was 14.8 billion, reflecting a 160% increase [1] - The gross margin for 2024 was 26.4%, a decrease of 1.3 percentage points, while the net profit margin improved to 7.8%, an increase of 1.5 percentage points [1] Revenue Breakdown - Excavation machinery revenue grew by 10% year-on-year, reaching 30.4 billion, maintaining the top sales position in the domestic market for 14 consecutive years [2] - Concrete machinery revenue decreased by 6% to 14.4 billion, but it remains the global leader in the sector [2] - The company’s overseas revenue for 2024 was 48.5 billion, a 12% increase, with a gross margin of 30% [4] Market Outlook - The engineering machinery industry is showing signs of recovery, with domestic market acceleration expected to benefit leading companies like SANY [5] - The company’s excavator revenue constitutes 39% of total revenue, positioning it well to capitalize on the industry's upward cycle [6] - SANY Heavy Industry participated in the Bauma exhibition, receiving nearly 3 billion in intended orders on the first day [6] Earnings Forecast - Revenue projections for 2025-2027 are 90.2 billion, 108.2 billion, and 128.5 billion, representing year-on-year growth rates of 15%, 20%, and 19% respectively [7] - Net profit forecasts for the same period are 8.5 billion, 11 billion, and 13.7 billion, with growth rates of 42%, 30%, and 24% respectively [7] - The projected P/E ratios for 2025-2027 are 19, 15, and 12 [7]