SANY(SH:600031) Guohai Securities·2024-05-02 01:30Investment Rating - The report assigns a "Buy" rating for SANY Heavy Industry (600031) [6][8] Core Views - The company is steadily advancing its "New Three Transformations" strategy, leading to continuous improvement in profitability [5][6] - In 2023, SANY Heavy Industry maintained strong competitiveness in core products despite a downturn in the domestic construction machinery industry, with excavators leading domestic sales for 13 consecutive years and concrete machinery ranking first globally [4][5] - The company's gross margin and net margin improved to 27.71% and 6.29% respectively in 2023, with further increases in Q1 2024 to 28.15% and 9.19% [4][5] Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of 740.19 billion yuan, a year-on-year decrease of 8.44%, while net profit attributable to shareholders was 45.27 billion yuan, an increase of 5.33% [4][6] - For Q1 2024, operating revenue was 178.30 billion yuan, down 0.95% year-on-year, with a net profit of 15.80 billion yuan, up 4.21% [4][6] Strategic Initiatives - The "New Three Transformations" strategy focuses on globalization, digitalization, and low-carbon initiatives, with overseas revenue reaching 432.58 billion yuan in 2023, a year-on-year increase of 18.28% [5][6] - The company has established 33 lighthouse factories and launched the MySANY customer interaction platform in 129 countries, enhancing service efficiency [5][6] Market Outlook - The company is expected to benefit from a recovery in domestic excavator demand, with projections indicating improved revenue growth in the latter half of 2024 [6][7] - Revenue forecasts for 2024-2026 are 804.96 billion yuan, 933.88 billion yuan, and 1,110.89 billion yuan respectively, with net profits of 62.27 billion yuan, 80.10 billion yuan, and 99.41 billion yuan [6][7]