海外业务稳定增长，盈利能力提升

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 9.18 CNY over the next six months, based on the current price of 7.03 CNY [1]. Core Insights - The company reported a revenue of 92.85 billion CNY in 2023, a slight decrease of 1.0% year-on-year, while the net profit attributable to shareholders increased by 23.5% to 5.33 billion CNY. In Q1 2024, revenue was 24.17 billion CNY, up 1.2% year-on-year, and net profit was 1.60 billion CNY, up 5.1% [2][3]. - The company is experiencing stable growth in overseas markets, with overseas revenue reaching 37.22 billion CNY in 2023, a 33.7% increase year-on-year, accounting for 40.1% of total revenue. The gross margin for overseas operations improved by 1.9 percentage points to 24.2% [3][19]. - The domestic engineering machinery sector is expected to recover, benefiting the company as it is a leading player in the industry. The company has a comprehensive product range and holds leading market shares in various segments [3][4]. Summary by Sections Company Overview - The company has over 80 years of experience in the engineering machinery industry and has established itself as a leader. It has undergone significant restructuring and mixed ownership reforms, enhancing its competitiveness and operational efficiency [11][21]. Financial Performance - In 2023, the company achieved a revenue of 92.85 billion CNY, with a net profit of 5.33 billion CNY. The revenue is projected to grow to 101.52 billion CNY in 2024, with a compound annual growth rate (CAGR) of 24% for net profit from 2024 to 2026 [4][5][28]. - The company’s gross margin improved to 22.4% in 2023, up 2.2 percentage points year-on-year, driven by better cost control and an increase in high-margin overseas business [3][19]. Business Segments - The company’s traditional segments, such as lifting and earth-moving machinery, faced challenges due to the domestic market downturn, but new segments like high-altitude work machinery and mining machinery showed significant growth [2][3][12]. - The lifting machinery segment generated revenue of 21.19 billion CNY in 2023, down 11.2% year-on-year, while the earth-moving machinery segment reported 22.56 billion CNY, down 4.6% [12][26]. Future Outlook - The company is expected to benefit from a recovery in domestic demand, with projections indicating a rebound in the engineering machinery sector. The company’s diverse product offerings and strong market position are likely to support its growth [3][4][28]. - The report forecasts net profits of 6.42 billion CNY, 8.17 billion CNY, and 10.04 billion CNY for 2024, 2025, and 2026, respectively, with corresponding earnings per share (EPS) of 0.54 CNY, 0.69 CNY, and 0.85 CNY [4][28].