EBSCN·2025-05-22 07:25Investment Rating - The report maintains a "Buy" rating for the engineering machinery industry [1] Core Insights - The engineering machinery industry is experiencing steady revenue growth, with profit growth outpacing revenue growth in 2024 and Q1 2025 [3][4] - The industry is supported by favorable government policies and a recovering demand for infrastructure, ensuring medium-term demand stability [7] - The trend towards electrification in engineering machinery is accelerating, with significant growth in electric loader sales [9] Revenue and Profit Performance - In 2024, the overall revenue of listed companies in the engineering machinery industry reached CNY 355.12 billion, a year-on-year increase of 3.5% [3] - For Q1 2025, the revenue was CNY 96.13 billion, reflecting a year-on-year growth of 10.4% [3] - The net profit attributable to shareholders in 2024 was CNY 29.77 billion, up 16.9% year-on-year, while Q1 2025 saw a net profit of CNY 9.72 billion, a 30.2% increase [4] Profitability Metrics - The overall gross margin for the industry in 2024 was 25.5%, a slight increase of 0.3 percentage points year-on-year [5] - The net profit margin improved to 8.7% in 2024, up 1.1 percentage points from the previous year [5] Sales Trends - From January to April 2025, excavator sales (including exports) reached 83,514 units, a year-on-year increase of 21.4% [6] - The domestic sales of excavators during this period were 49,109 units, marking a 31.9% increase [6] Export Performance - In the same period, excavator exports totaled 34,405 units, reflecting a 9.0% year-on-year growth [8] - The report highlights opportunities for growth in Southeast Asia, Africa, and the Middle East markets [8] Electrification and Green Transition - Electric loader sales surged by 254.8% in Q1 2025, with an electrification rate of 19.3%, up 14.3 percentage points year-on-year [9] - The government is promoting a green transition, which is expected to accelerate the electrification process in the engineering machinery sector [9] Investment Recommendations - The report recommends key players such as SANY Heavy Industry, Zoomlion, XCMG, LiuGong, and Shantui, as well as component manufacturers like Hengli Hydraulic [10]