LIUGONG(SZ:000528) Changjiang Securities·2024-05-06 01:02Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Insights - The company experienced significant growth in Q1 2024, with revenue reaching 7.939 billion yuan, a year-on-year increase of 1.88%, and a net profit attributable to shareholders of 498 million yuan, up 58.03% year-on-year [19]. - The company's domestic and international operations continue to outperform the industry, contributing to revenue and profit growth [19]. - The company is focusing on electrification and diversification of its business, which is expected to create new growth curves [20]. Summary by Sections Performance Overview - In Q1 2024, the company's gross margin increased by 3.99 percentage points to 22.79%, and the net profit margin rose by 2.34 percentage points to 6.49% [6]. - The increase in profitability is attributed to an optimized revenue structure, with overseas revenue accounting for 41.7% of main business in 2023, up 10.3 percentage points year-on-year [6][19]. Market Position - The company’s domestic market sales growth outpaced the industry, with a 7 percentage point advantage in earth-moving machinery sales growth compared to the industry average [19]. - The company is expected to maintain its growth momentum, with a projected net profit of 1.413 billion yuan in 2024 and 1.929 billion yuan in 2025, corresponding to P/E ratios of 15 times and 11 times, respectively [7]. Business Development - The company is advancing its electrification strategy across multiple product lines, with electric products covering 11 categories, and electric loader sales increasing by 67% year-on-year [20]. - The diversification strategy includes significant growth in mining machinery and aerial work platforms, with sales revenue for aerial machinery increasing by 112% year-on-year [20].