Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The engineering machinery industry is transitioning from excavators to non-excavation equipment, with expectations of recovery in domestic sales for the company's engineering cranes and concrete machinery in Q1 [2][11]. - The company's overseas revenue continues to grow rapidly, with a year-on-year increase of 15.17% in Q1, and overseas revenue now accounts for 54.20% of total revenue, reflecting a 5.77 percentage point increase year-on-year [2][11]. - The company is expected to benefit from the recovery in domestic demand for traditional segments such as concrete machinery and cranes, while also expanding into emerging strategic sectors like earthmoving, agricultural, and mining machinery [2][11]. Summary by Sections Financial Performance - In Q1 2025, the company achieved revenue of 12.117 billion yuan, a year-on-year increase of 2.92%, and a net profit attributable to shareholders of 1.410 billion yuan, up 53.98% year-on-year [6]. - The gross profit margin for Q1 was 28.67%, reflecting a slight year-on-year increase of 0.21 percentage points, attributed to a higher proportion of overseas revenue and product structure optimization [11]. - The net profit margin for Q1 was 12.51%, an increase of 3.84 percentage points year-on-year [11]. Market Outlook - The domestic market for engineering cranes and concrete machinery is expected to recover, with significant improvements anticipated in Q1, although total domestic revenue still declined due to weak demand for tower cranes and high-altitude machinery [11]. - The company is projected to achieve net profits of 5.016 billion yuan and 6.055 billion yuan in 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 13 times and 11 times [11].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The domestic business is expected to recover from excavators to non-excavator equipment, with significant improvement in profitability [2][6]. - The company's international operations have shown significant results, with overseas revenue growing by 12% year-on-year in 2024, accounting for 45.5% of total revenue [2][12]. - The company's profitability continues to improve, with gross margin and net margin both showing year-on-year increases for 2024 and Q1 2025 [2][12]. Summary by Sections Domestic Business Performance - In 2024, the company achieved revenue of 91.66 billion yuan, a year-on-year decrease of 1.28%, while net profit attributable to shareholders was 5.976 billion yuan, an increase of 12.20% [6]. - For Q1 2025, the company reported revenue of 26.815 billion yuan, a year-on-year increase of 10.92%, and net profit attributable to shareholders of 2.022 billion yuan, up 26.37% [6]. International Business Growth - The company's international revenue is expected to continue growing, with a significant increase in overseas market share and a well-established international operational framework [2][12]. - The company has over 40 overseas subsidiaries and more than 300 overseas distributors, enhancing its competitive strength in international markets [12]. Profitability and Cash Flow - The gross margin for 2024 was 22.55%, reflecting a year-on-year increase of 1.75 percentage points, driven by higher overseas sales and product mix optimization [12]. - The net margin for 2024 was 6.53%, up 0.89 percentage points year-on-year, indicating improved profitability [12]. - The net cash flow from operating activities increased by 60% year-on-year for 2024 and by 257% for Q1 2025, demonstrating significant improvement in operational quality [2][12]. Future Outlook - The domestic engineering machinery industry is expected to shift from excavators to non-excavator equipment, with a clear upward trend anticipated [12]. - The company is projected to achieve net profits of 8.106 billion yuan and 10.346 billion yuan in 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 13 times and 10 times [12].