XCMG(SZ:000425) ZHESHANG SECURITIES·2025-09-26 09:08Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company signed the largest order for green mining equipment exports from China, aiming to provide 150-200 units of 240-ton pure electric mining trucks to Fortescue Group between 2028 and 2030 [1] - The company is implementing one of the largest incentive plans in the machinery industry, granting equity incentives to up to 4,700 employees, which reflects strong confidence in its development [2] - The company reported steady performance in the first half of 2025, with revenue of 54.8 billion yuan, a year-on-year increase of 8%, and a net profit of 4.36 billion yuan, up 17% year-on-year [3] - The engineering machinery industry is showing signs of recovery, with domestic excavator sales increasing by 22% year-on-year from January to August 2025, supported by large infrastructure projects [4] - The company is expected to achieve revenues of 104 billion, 126.9 billion, and 152.7 billion yuan from 2025 to 2027, with net profits of 7.3 billion, 9.5 billion, and 11.5 billion yuan respectively, indicating a compound annual growth rate of 24% [4] Summary by Sections Company Overview - The company is enhancing its mining machinery portfolio through deepening cooperation with major global clients such as BHP, Rio Tinto, and Vale [1][3] - The company has been ranked among the top five global manufacturers of open-pit mining equipment for six consecutive years, aiming for a top-three position [1] Financial Performance - In the first half of 2025, the company achieved a net operating cash flow of 3.73 billion yuan, a significant increase of 108% year-on-year [3] - The company’s gross margin for the first half of 2025 was 22%, an increase of 0.7 percentage points year-on-year, with a weighted average ROE of 7.2% [4] Future Projections - The company forecasts a revenue growth of 13%, 22%, and 20% for the years 2025, 2026, and 2027 respectively, with net profit growth of 22%, 29%, and 22% for the same years [4][6] - The projected P/E ratios for 2025, 2026, and 2027 are 17, 13, and 11 respectively, indicating a favorable valuation outlook [4][6]