业绩主要受挖机拖累，非挖业务快速增长

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a revenue of 8.985 billion yuan in 2023, a year-on-year increase of 9.6%, and a net profit attributable to shareholders of 2.5 billion yuan, up 6.7% year-on-year [2] - The first quarter of 2024 saw a revenue of 2.36 billion yuan, a decrease of 2.7% year-on-year, and a net profit of 600 million yuan, down 3.4% year-on-year, which aligns with expectations [2] - The domestic excavator market remains weak, with a 25.4% decline in sales in 2023, but the company is focusing on high-growth non-excavator sectors [3] - The company's diversification strategy has contributed to revenue growth, particularly in non-engineering machinery products, and international market expansion has also boosted overseas sales [3] - The gross margin for 2023 was 41.9%, an increase of 1.35 percentage points year-on-year, while the net margin was approximately 27.87%, a decrease of 0.79 percentage points [3] - The report suggests that the downcycle in the excavator market may have ended, with signs of market stabilization and potential growth driven by policy incentives [3] Summary by Sections Performance Overview - In 2023, the company achieved a revenue of 89.85 billion yuan and a net profit of 25 billion yuan, with a strong performance in Q4 2023 [2] - The first quarter of 2024 showed a slight decline in revenue and net profit, but results were in line with expectations [2] Business Analysis - The excavator market is experiencing a downturn, but the company is shifting focus to non-excavator sectors, which are showing high growth potential [3] - The company’s gross margin improved due to cost reduction and a higher proportion of high-margin non-excavator business [3] - The report indicates a potential end to the excavator market's downcycle, with signs of recovery and growth opportunities in the future [3] Financial Forecast and Valuation - The company is expected to achieve net profits of 2.7 billion yuan, 3.1 billion yuan, and 3.75 billion yuan for 2024, 2025, and 2026, respectively [3] - The current stock price corresponds to a PE ratio of 26, 23, and 19 for the years 2024, 2025, and 2026 [3]