LIUGONG(SZ:000528) CDBS·2024-04-02 16:00Investment Rating - The report maintains a "Recommended" investment rating for the company, with a target price of 8.59 CNY per share [5][10]. Core Insights - The company achieved a revenue of 27.52 billion CNY in 2023, representing a year-on-year growth of 3.93%, while the net profit attributable to shareholders increased by 44.80% to 868 million CNY [12][24]. - The comprehensive gross profit margin improved by 4.02 percentage points to 20.82% in 2023, with the engineering machinery segment's gross margin rising by 4.12 percentage points to 19.91% [2]. - The company has made significant strides in internationalization, with overseas revenue growing by 41.18% to 11.46 billion CNY, accounting for 41.65% of total revenue [3]. Financial Performance Summary - The company forecasts earnings per share (EPS) of 0.62 CNY, 0.86 CNY, and 1.04 CNY for 2024, 2025, and 2026, respectively, with corresponding dynamic price-to-earnings ratios of 13.85, 9.99, and 8.26 [5][6]. - The operating income is projected to grow to 30.51 billion CNY in 2024, with a growth rate of 10.85%, and further increase to 40.15 billion CNY by 2026 [6][17]. - The net profit attributable to shareholders is expected to reach 1.20 billion CNY in 2024, reflecting a growth rate of 38.50% [6][17]. Business Segment Performance - The earth-moving machinery segment's revenue grew by 2.24% to 15.91 billion CNY, while other engineering machinery and components saw a 6.22% increase to 8.82 billion CNY [24]. - The company has established four overseas manufacturing bases and expanded its dealer network, enhancing its international market presence [3][24]. - The company has increased its R&D investment by 11.69% to 1.05 billion CNY, emphasizing its commitment to technological innovation [15].