LIUGONG(SZ:000528) Changjiang Securities·2025-09-04 08:12Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - In the first half of 2025, the company achieved revenue of 18.181 billion yuan, a year-on-year increase of 13.21%. The net profit attributable to shareholders was 1.230 billion yuan, up 25.05% year-on-year, and the net profit after deducting non-recurring gains and losses was 1.146 billion yuan, an increase of 27.01% year-on-year [2][6]. - The company continues to see rapid growth in both domestic and international sales, with a further increase in global market share for earth-moving machinery. The overall profitability is steadily improving, with a comprehensive gross margin of 22.32%, up 0.22 percentage points year-on-year [2][12]. - The company plans to invest 500 million yuan to establish a new manufacturing plant in Indonesia, which will deepen its global layout and help mitigate trade tariff impacts [2][12]. - The board has approved the "15th Five-Year" strategic plan, aiming for 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% [2][12]. Summary by Sections Financial Performance - For Q2 2025, the company reported revenue of 9.032 billion yuan, a year-on-year increase of 11.22%, and a net profit of 573 million yuan, up 17.94% year-on-year [6]. - The domestic revenue grew by 16%, with loader revenue increasing by over 20%, and excavator domestic terminal sales rising by 31%, enhancing market share by 1.6 percentage points [12]. - International revenue increased by 11%, with earth-moving machinery sales outpacing the industry by 19 percentage points, and global market share rising by approximately 1 percentage point [12]. Strategic Initiatives - The establishment of the new Indonesian factory is expected to enhance local market penetration in Southeast Asia and Indonesia, while also expanding the company's dealer network, which has surpassed 400 dealers and over 1,300 service points globally [12]. - The strategic plan outlines a compound annual growth rate (CAGR) of 12% for revenue and 24% for profit from 2024 to 2030, with a profit target of 4.8 billion yuan by 2030 [12]. Profitability and Margins - The gross margin for the first half of 2025 was 22.32%, with domestic gross margin slightly declining by 0.65 percentage points due to intense competition in the electrical equipment sector, while the overseas gross margin improved by 1.49 percentage points [12]. - The pre-stressed and leasing business segments contributed positively to overall profitability, with gross margins increasing by 4.47 percentage points and 1.97 percentage points, respectively [12].