XCMG(000425) Guotou Securities·2024-05-10 11:00Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 8.4 CNY [3][8]. Core Views - The company has shown resilience in revenue despite a slight decline in 2023, with a revenue of 928.48 billion CNY, down 1.03% year-on-year, while net profit increased by 23.51% to 53.26 billion CNY [1][8]. - The company is experiencing a gradual stabilization in revenue growth, with significant contributions from emerging industries and international expansion [1][8]. - The company has established a comprehensive international development model, enhancing its global competitiveness [1][8]. Financial Performance - In 2023, the company achieved revenues of 928.48 billion CNY and a net profit of 53.26 billion CNY, with a revenue growth rate of -1.03% and a net profit growth rate of +23.51% [1][8]. - For Q1 2024, the company reported revenues of 241.74 billion CNY, up 1.18% year-on-year, and a net profit of 16.00 billion CNY, up 5.06% year-on-year [1][8]. - The gross margin for 2023 was 22.38%, and for Q1 2024, it improved to 22.89% [2][8]. Product and Market Analysis - Traditional business segments contributed significantly to revenue, with revenues from hoisting machinery, earthmoving machinery, and concrete machinery at 211.87 billion CNY, 225.60 billion CNY, and 104.25 billion CNY respectively [1][8]. - The strategic emerging industries saw nearly 30% revenue growth in 2023, contributing over 20% to total revenue [1][8]. - Domestic sales decreased by 15.69% to 556.28 billion CNY, while overseas sales increased by 33.70% to 372.20 billion CNY [1][8]. Future Projections - Revenue projections for 2024-2026 are 986.2 billion CNY, 1,078.1 billion CNY, and 1,211.5 billion CNY, with growth rates of 6.2%, 9.3%, and 12.4% respectively [8][9]. - Net profit projections for the same period are 66.0 billion CNY, 79.8 billion CNY, and 102.1 billion CNY, with growth rates of 23.9%, 20.8%, and 28.0% respectively [8][9].