LIUGONG(SZ:000528) Tianfeng Securities·2025-08-28 06:43Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][17]. Core Views - The company reported a stable performance in its H1 2025 results, achieving revenue of 18.181 billion yuan, a year-on-year increase of 13.21%, with a net profit of 1.23 billion yuan, up 25.05% year-on-year [1][5]. - The company aims to achieve a revenue target of 60 billion yuan by 2030, with international revenue accounting for over 60% and a net profit margin of no less than 8% [4]. Financial Performance Summary - In H1 2025, the company achieved a gross margin of 22.32%, a slight increase of 0.22 percentage points, while the net profit margin was 6.34%, up 0.01 percentage points [1]. - The company’s domestic revenue was 9.658 billion yuan, increasing by 15.69%, while international revenue reached 8.523 billion yuan, up 10.52% [1]. - The company’s net profit forecast for 2025-2027 is adjusted to 1.7 billion, 2.36 billion, and 3.31 billion yuan, representing year-on-year growth rates of 28.4%, 38.7%, and 39.9% respectively [5]. Business Segment Performance - The engineering machinery segment showed solid growth, with loader sales revenue increasing by over 20% year-on-year, and excavator sales revenue up by 25% [2][3]. - The company’s international business experienced counter-cyclical growth, with sales volume growth significantly exceeding the industry average, and the market share of earth-moving machinery products increased by 1 percentage point [3]. Strategic Development - The company is accelerating its globalization efforts, with over 400 overseas distributors and more than 1,300 service points established [3]. - The company has approved investments of 500 million yuan in Indonesia for a manufacturing plant and 150 million reais in Brazil for a financing leasing company [3][4].