LIUGONG(SZ:000528) Huaxin Securities·2025-12-19 08:01Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Insights - The company's main business in construction machinery, including excavators and loaders, has seen significant growth, with excavator revenue increasing by 25.1% year-on-year and net profit rising over 90% in the first half of 2025 [3][4] - Emerging businesses, such as aerial work platforms and mining machinery, are also experiencing rapid growth, with aerial work platform sales and profits more than doubling [3][4] - The company's "14th Five-Year Plan" outlines a clear long-term development strategy, aiming for revenue of no less than 60 billion yuan by 2030, with international revenue accounting for at least 60% [5][8] Business Structure Optimization - The main business and emerging sectors are working in synergy, with the construction machinery sector leading the way [3] - The company has achieved a market share increase of 1.6 percentage points in excavators, with overseas sales growing by 22.1% [3][4] Globalization and Overseas Growth - The company is transitioning from a sales network layout to localized operations, with overseas revenue becoming a core support against domestic industry fluctuations [4] - Revenue from emerging markets has grown over 20% in the first three quarters of 2025, with a significant increase in overseas gross margins [4] Financial Forecast - Revenue projections for 2025-2027 are 348.63 billion yuan, 396.57 billion yuan, and 444.50 billion yuan, respectively, with corresponding EPS of 0.77, 1.06, and 1.34 yuan [8][10] - The current stock price corresponds to a PE ratio of 16.3, 11.9, and 9.4 for the years 2025, 2026, and 2027, indicating growth potential [8][10]