XCMG(SZ:000425) China Post Securities·2025-05-19 03:50Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Insights - The company reported a revenue of 916.60 billion yuan in 2024, a decrease of 1.28% year-on-year, while the net profit attributable to shareholders increased by 12.20% to 59.76 billion yuan [3][4]. - In Q1 2025, the company achieved a revenue of 268.15 billion yuan, representing a year-on-year increase of 10.92%, and a net profit of 20.22 billion yuan, up 26.37% [3][4]. - The company has seen growth in various machinery segments, with notable increases in pile machinery (45.21% growth) and mining machinery (8.55% growth) [4]. - The gross profit margin improved to 22.55%, an increase of 1.75 percentage points year-on-year, with domestic and international margins also showing positive trends [4][5]. - Emerging industries are rapidly developing, with significant revenue growth in sectors such as fire-fighting machinery (over 30% growth) and agricultural machinery (over 170% growth) [5]. Financial Performance Summary - The company forecasts revenues of 1008.63 billion yuan, 1120.99 billion yuan, and 1239.32 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 10.04%, 11.14%, and 10.56% [6][9]. - The net profit attributable to shareholders is expected to reach 77.77 billion yuan, 98.31 billion yuan, and 120.68 billion yuan for the same years, with growth rates of 30.13%, 26.41%, and 22.76% [6][9]. - The company's price-to-earnings (P/E) ratio is projected to decrease from 16.79 in 2024 to 8.24 by 2027, indicating a potentially attractive valuation [6][9].