SANY(SH:600031)2024-05-03 09:02Investment Rating - The report maintains a "Buy" rating for the company [6][8]. Core Views - The company has shown a significant increase in overseas revenue, while domestic demand is approaching a turning point. The overseas revenue reached 435.64 billion yuan, a year-on-year increase of 19.12%, while domestic revenue was 296.58 billion yuan, a decline of 28.59% [7]. - The overall gross margin for the company improved to 27.71%, an increase of 3.71 percentage points year-on-year, driven by cost reduction and efficiency improvements, as well as a shift in product mix [7]. - The engineering machinery cycle is expected to bottom out in 2024, with potential policy support leading to a stabilization and recovery in terminal demand [7]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 740.19 billion yuan, a year-on-year decrease of 8.44%, while the net profit attributable to the parent company was 45.27 billion yuan, an increase of 5.53% [6]. - For Q1 2024, the company reported a revenue of 178.30 billion yuan, a slight decline of 0.95%, and a net profit of 15.80 billion yuan, a year-on-year increase of 4.21% [6][9]. Revenue Breakdown - Revenue by product for 2023: Excavators 276.36 billion yuan (-22.77%), Concrete machinery 153.15 billion yuan (+1.55%), Cranes 129.99 billion yuan (+2.60%), Road machinery 24.85 billion yuan (-19.32%), Piling machinery 20.85 billion yuan (-31.97%) [7]. - Revenue by region: Domestic 296.58 billion yuan (-28.59%), Overseas 435.64 billion yuan (+19.12%) [7]. Profitability Metrics - The gross margin for excavators, concrete machinery, cranes, road machinery, and piling machinery were 33.17%, 22.33%, 24.67%, 30.00%, and 34.08% respectively, with notable increases in several categories [7]. - The projected net profits for 2024-2026 are 59.70 billion yuan, 78.10 billion yuan, and 100.13 billion yuan respectively, reflecting a recovery trend [8][9].