业绩略优于预期，多元化战略推进顺利

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Insights - The company reported a revenue of 8.985 billion yuan in 2023, a year-on-year increase of 9.61%, and a net profit attributable to shareholders of 2.499 billion yuan, up 6.66% year-on-year. The first quarter of 2024 saw a revenue of 2.362 billion yuan, a decline of 2.70% year-on-year, and a net profit of 602 million yuan, down 3.77% year-on-year [1]. - Despite a 25.4% decline in the excavator industry in 2023, the company achieved revenue and profit growth, demonstrating resilience as a market leader. The gross margin for Q1 2024 was 40.1%, slightly down by 0.76 percentage points year-on-year, while the net margin was 25.5%, down by 0.29 percentage points year-on-year [1]. - The diversification strategy is yielding results, with non-excavator business showing strong performance. Sales of non-standard hydraulic cylinders for heavy equipment increased by 16.06% year-on-year, and sales in non-excavator sectors such as hydraulic pumps, valves, and motors saw significant growth [1]. - The company's international sales reached 1.927 billion yuan in 2023, a 9.95% increase year-on-year, despite a slowdown in growth due to declining excavator export volumes. The company is expanding its international presence with new production bases and subsidiaries in Mexico, Singapore, and Brazil [1]. Financial Summary - In 2023, the company achieved a revenue of 8.985 billion yuan, with a projected revenue of 9.895 billion yuan for 2024, reflecting a growth rate of 10.1%. The net profit for 2024 is expected to be 2.726 billion yuan, a year-on-year increase of 9.1% [3]. - The earnings per share (EPS) for 2023 was 1.86 yuan, with projections of 2.03 yuan for 2024 and 2.47 yuan for 2025 [3]. - The company’s return on equity (ROE) for 2023 was 17.3%, with expectations of 16.8% for 2024 and 17.8% for 2025 [3].