Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 9.41 and a sector rating of "Outperform" [2][5]. Core Views - The company reported strong performance in 2024, achieving revenue of RMB 14.22 billion, a year-on-year increase of 25.12%, and a net profit attributable to shareholders of RMB 1.10 billion, up 40.72% year-on-year. The successful expansion into overseas markets and the integration of excavator business are expected to further enhance growth potential [5][10]. - The company is projected to achieve revenues of RMB 15.86 billion, RMB 18.07 billion, and RMB 21.15 billion for 2025, 2026, and 2027 respectively, with net profits of RMB 1.37 billion, RMB 1.63 billion, and RMB 2.00 billion for the same years [7][9]. Summary by Sections Financial Performance - In 2024, the company achieved a gross margin of 20.05%, an increase of 1.61 percentage points year-on-year, and a net margin of 7.77%, up 0.48 percentage points year-on-year. The operating cash flow improved significantly, reaching RMB 515 million, a 36.70% increase year-on-year [10][11]. - The company’s revenue from overseas markets reached RMB 7.41 billion, accounting for 52.1% of total revenue, while domestic revenue was RMB 5.50 billion, reflecting a year-on-year growth of 29.39% [10]. Growth Drivers - The acquisition of Shandong Heavy Industry's excavator business is expected to create a second growth curve for the company, leveraging existing sales channels and supply chain advantages [10]. - The company plans to repurchase shares worth RMB 150 million to RMB 300 million, indicating management's confidence in long-term growth prospects [10]. Valuation Metrics - The report forecasts earnings per share (EPS) of RMB 0.92, RMB 1.08, and RMB 1.34 for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 10.3, 8.7, and 7.0 [7][9].