XCMG(SZ:000425) China Post Securities·2024-05-06 10:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within six months [9]. Core Insights - The company reported a revenue of 928.48 billion yuan for 2023, a slight decrease of 1.03% year-on-year, while the net profit attributable to shareholders increased by 23.51% to 53.26 billion yuan [5][6]. - In Q1 2024, the company achieved a revenue of 241.74 billion yuan, reflecting a year-on-year growth of 1.18%, and a net profit of 16.00 billion yuan, up 5.06% [5]. - The company’s strategic emerging industries saw a revenue growth of nearly 30% in 2023, with significant contributions from sectors like fire safety and new energy mining vehicles [5]. Financial Performance Summary - For 2023, the company’s revenue from various machinery segments was as follows: - Lifting machinery: 211.87 billion yuan (-11.20%) - Earth-moving machinery: 225.60 billion yuan (-4.56%) - Concrete machinery: 104.25 billion yuan (+9.72%) - Other segments showed varied performance, with some experiencing significant growth [5]. - The gross margin improved by 2.17 percentage points to 22.38% in 2023, with notable increases in lifting and earth-moving machinery [5]. - The company’s projected revenues for 2024-2026 are 101.30 billion, 111.57 billion, and 121.20 billion yuan, with expected growth rates of 9.10%, 10.14%, and 8.63% respectively [6][7]. Valuation Metrics - The projected PE ratios for 2024-2026 are 12.76, 10.67, and 8.93 times, indicating a favorable valuation trend [6][7]. - The company’s net profit attributable to shareholders is expected to reach 63.99 billion, 76.53 billion, and 91.46 billion yuan for the same period, with growth rates of 20.14%, 19.59%, and 19.50% respectively [6][7].