LIUGONG(SZ:000528) Dongguan Securities·2025-11-03 09:20Investment Rating - The report maintains a "Buy" rating for the company [1][5]. Core Insights - The company experienced stable revenue growth in Q3 2025, with a revenue of 75.79 billion yuan, representing a year-on-year increase of 11.52%, but a quarter-on-quarter decline of 16.09%. The net profit attributable to shareholders was 2.28 billion yuan, down 32.47% year-on-year and down 60.25% quarter-on-quarter [5]. - The company's credit impairment losses increased to 6.11 billion yuan in the first three quarters of 2025, reflecting a significant impact from weak real estate demand, particularly affecting the tower crane business [5]. - The company is advancing its internationalization strategy, with overseas revenue reaching 85.23 billion yuan in H1 2025, a year-on-year increase of 10.52%, accounting for 46.88% of total revenue. Emerging markets showed strong growth, with some regions exceeding 80% growth [5]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of 257.60 billion yuan, up 12.71% year-on-year, and a net profit of 14.58 billion yuan, up 10.37% year-on-year. The gross margin was 22.25%, down 1.23 percentage points, and the net margin was 4.93%, down 1.01 percentage points [5]. - In Q3 2025, the gross margin was 22.08%, down 1.59 percentage points year-on-year and down 0.56 percentage points quarter-on-quarter [5]. Cost and Expenses - The sales expense ratio, management expense ratio, R&D expense ratio, and financial expense ratio showed year-on-year changes of -1.32 percentage points, -0.10 percentage points, +0.29 percentage points, and -0.24 percentage points, respectively [5]. Future Projections - The company forecasts EPS of 0.82 yuan, 1.10 yuan, and 1.41 yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 14x, 11x, and 8x [5][7].