SINOLINK SECURITIES·2025-04-30 06:23Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported a revenue of 12.117 billion yuan in Q1 2025, a year-on-year increase of 2.92%, and a net profit attributable to shareholders of 1.410 billion yuan, up 53.98% year-on-year [2][3]. - The company's gross margin for Q1 2025 was 28.67%, reflecting a slight year-on-year increase of 0.02 percentage points and a quarter-on-quarter increase of 1.14 percentage points [2][3]. - The company has seen a significant improvement in operating cash flow, with a net cash flow of 740 million yuan in Q1 2025, representing a year-on-year increase of 140.96% [3]. - The overseas revenue accounted for 51.41% of total revenue in 2024, surpassing domestic revenue, indicating successful global expansion [3]. - The report forecasts that the company's gross margin will reach 29.4%, 29.7%, and 29.9% in 2025, 2026, and 2027, respectively [3]. Summary by Sections Performance Review - In Q1 2025, the company achieved a revenue of 12.117 billion yuan, with a net profit of 1.410 billion yuan, marking a significant profit acceleration [2][3]. - The company’s net profit margin improved to 12.51%, up 3.84 percentage points year-on-year [2]. Operational Analysis - The domestic demand for excavators increased by 38.3% year-on-year, while exports grew by 5.49%, contributing to the revenue growth [3]. - The company is diversifying its product offerings, with significant growth in agricultural machinery and high-altitude machinery, achieving revenues of 4.683 billion yuan and 4.465 billion yuan, respectively, in 2024 [4]. Profit Forecast and Valuation - The projected revenues for 2025, 2026, and 2027 are 52.104 billion yuan, 60.719 billion yuan, and 70.983 billion yuan, respectively, with net profits expected to be 5.004 billion yuan, 6.436 billion yuan, and 7.935 billion yuan [5][10].