Changjiang Securities·2024-05-16 06:02Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Insights - The company's export performance remains strong, with overseas revenue in Q1 2024 increasing by 52.85% year-on-year, and export revenue rising by 60.95%. The share of overseas revenue reached 48%, an increase of 10 percentage points compared to the entire year of 2023 [5][6]. - The company has significantly improved its profitability, with Q1 2024 gross margin and net margin increasing by 2.26 percentage points and 0.43 percentage points year-on-year, respectively, primarily due to structural optimization and cost reduction [5][6]. - The domestic industry is expected to stabilize in 2024, with traditional segments projected to develop steadily, while emerging sectors are likely to continue contributing to revenue growth. The company's overseas expansion is gradually improving, and overseas revenue is expected to maintain high growth [5][6]. Summary by Sections Export Performance - The company achieved overseas revenue of 57.03 billion yuan in Q1 2024, a year-on-year increase of 52.85%, with export revenue growing by 60.95%. The overseas revenue proportion reached 48%, up 10 percentage points from 2023 [5][6]. Emerging Sectors - New business segments such as excavators, aerial work platforms, mining machinery, and agricultural machinery are expected to continue their high growth trajectory in Q1 2024. The domestic market share for large excavators doubled year-on-year, and the company is enhancing its product reliability and production efficiency [5][6]. Profitability Improvement - The company's gross margin in Q1 2024 was 28.65%, up 2.26 percentage points year-on-year, while the net margin was 8.67%, an increase of 0.43 percentage points. The rise in overseas revenue proportion, which has a higher gross margin, and ongoing cost reduction efforts are key factors driving profitability [5][6]. Industry Outlook - The domestic industry is expected to stabilize in 2024, with traditional segments like lifting and concrete machinery projected to develop steadily. Emerging sectors are anticipated to continue contributing to revenue growth, supported by an improving overseas layout [5][6].