XCMG(SZ:000425) Soochow Securities·2024-04-30 19:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2023 annual report and 2024 Q1 report indicate a net profit of 5.326 billion yuan, a year-on-year increase of 23.51%, while total revenue was 92.848 billion yuan, a slight decrease of 1.03% [3][4] - The company plans to distribute a cash dividend of 1.8 yuan per 10 shares, resulting in a dividend yield of 2.6% based on the current stock price [3][4] - The company is actively repurchasing shares, demonstrating confidence in its long-term development [7][14] Financial Performance - In 2023, the company's gross profit margin was 22.38%, an increase of 2.17 percentage points year-on-year, and the net profit margin was 5.74%, up 1.16 percentage points [6][16] - For 2024 Q1, the gross profit margin improved to 22.89%, and the net profit margin rose to 6.66% [6] - The company's total revenue is projected to grow to 103.007 billion yuan in 2024, with a year-on-year growth rate of 10.94% [2][16] Segment Performance - The company outperformed the industry, with significant growth in high-altitude and mining machinery segments, despite a 24% decline in excavator industry sales in 2023 [4][5] - Revenue from concrete machinery increased by 9.72% to 10.425 billion yuan, while high-altitude machinery saw a 35.62% increase to 8.883 billion yuan [4] - The overseas revenue reached 37.220 billion yuan in 2023, a year-on-year increase of 33.70%, indicating a growing international presence [5] Shareholder Returns - The company has committed to returning value to shareholders through dividends and share buybacks, with a total of 4.489 billion yuan distributed since 2022 [14] - The planned dividend for 2023 is approximately 2.127 billion yuan, reflecting a 20% increase year-on-year [14] Future Outlook - The company is expected to benefit from a dual-cycle resonance of large-scale equipment updates and industry self-updates, with a projected net profit of 6.672 billion yuan in 2024 [15] - The current market valuation corresponds to a P/E ratio of 12/9/7 for the years 2024-2026, maintaining a "Buy" rating [15]