XCMG(SZ:000425) Tianfeng Securities·2025-05-03 15:25Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [6][18]. Core Views - The company has shown excellent performance in its annual and quarterly reports, with 2024 revenue at 91.66 billion yuan, a slight decrease of 1.28% year-on-year, while overseas revenue increased by 12% to 41.69 billion yuan, accounting for 45.48% of total revenue [1][3]. - Net profit for 2024 reached 5.976 billion yuan, up 12.2% year-on-year, with a significant increase in non-recurring net profit by 28.14% [1][2]. - The company is focusing on a balanced industrial structure and strategic acquisitions to enhance its competitive advantage in the mining machinery sector [3][4]. Financial Performance - In Q1 2025, the company achieved a revenue of 26.815 billion yuan, reflecting a year-on-year growth of 10.92% [1]. - The gross profit margin for 2024 was 22.5%, an increase of 1.7 percentage points, while the net profit margin was 6.5%, up 0.8 percentage points [1][2]. - Operating cash flow improved significantly, with a net amount of 5.72 billion yuan in 2024, a 60.18% increase year-on-year [2]. Strategic Initiatives - The company is implementing three major initiatives to enhance quality, focusing on reducing accounts receivable, optimizing inventory, and improving gross margins [4]. - A strategic acquisition of 51% of Xuzhou Xugong Heavy Vehicle Co., Ltd. aims to strengthen its position in the mining machinery market [3]. Investor Returns - The company has announced a cash dividend of 2.08 billion yuan for 2024 and plans to repurchase shares worth 1.8 to 3.6 billion yuan, demonstrating confidence in future growth [5]. - Profit forecasts for 2025-2027 are adjusted to 7.91 billion, 10.08 billion, and 13.36 billion yuan respectively, with corresponding P/E ratios of 13.2, 10.3, and 7.8 [5][10].