LIUGONG(SZ:000528) Tianfeng Securities·2025-04-28 10:43Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [6][5]. Core Insights - The company reported strong performance in Q1 2025, achieving revenue of 9.149 billion yuan, a year-on-year increase of 15.24%, and a net profit attributable to shareholders of 657 million yuan, up 32% year-on-year [1]. - The controlling shareholder plans to increase its stake by 250 to 500 million yuan, reflecting confidence in the company's long-term development [2]. - The company is accelerating its industrial cluster layout, with significant growth in excavators and loaders, and a diversified business model that enhances profitability across various segments [3][4]. Financial Performance - In Q1 2025, the company’s gross profit margin was 22.01%, and net profit margin reached 7.03%, showing an improvement in profitability metrics [1]. - The company expects net profits for 2025-2027 to be 2.17 billion, 3.10 billion, and 4.28 billion yuan, respectively, with year-on-year growth rates of 63%, 43%, and 38% [5][10]. Market Position and Strategy - The company has strengthened its market position in various segments, with excavators and loaders leading in domestic market share, and significant growth in international markets, particularly in emerging regions [3][4]. - The company has expanded its dealer network to nearly 400, increasing coverage to approximately 70% across over 180 countries and regions [4].