Group 1: Company Overview - Tongli Co., Ltd. is a national-level manufacturing champion in the engineering machinery sector, integrating product research and development, design, production, sales, and after-sales service [2] - The main products include non-road wide-body dump trucks, non-road mining dump trucks, and underground mining vehicles, with a focus on both traditional fuel models and new energy models such as pure electric, hybrid, hydrogen fuel, and methanol fuel vehicles [2] - The company has expanded its market reach beyond domestic provinces to countries including Pakistan, Indonesia, Malaysia, Mongolia, Russia, Tajikistan, India, and the Democratic Republic of the Congo [2] Group 2: Market Position and Performance - Tongli Co., Ltd. holds an estimated market share of over 30% in the new energy and unmanned mining truck market, with an expected increase of 1-2 percentage points compared to last year [2] - The company’s products are priced slightly higher than competitors due to brand advantages, first-mover advantages, and recognized after-sales service capabilities, which customers accept despite the higher cost [2] - Customers prioritize long-term costs, including vehicle quality, failure rates, and after-sales service response times, rather than just purchase price [2] Group 3: Future Development and Strategy - The overseas promotion of unmanned and new energy mining trucks will be a gradual process, requiring a certain level of domestic implementation and operational data accumulation before entering foreign markets, which may be delayed by 1-3 years [3] - The company aims to enhance its brand image and reduce after-sales pressure by ensuring product maturity before international promotion [3] Group 4: Industry Insights and Investor Engagement - The "Investor Zero Distance" event aims to enhance communication between investors and companies listed on the Beijing Stock Exchange, improving investor understanding of company fundamentals and fostering a rational investment culture [4] - Participants expressed a deeper understanding of the innovative development achievements of companies listed on the Beijing Stock Exchange and the market investment value and opportunities available [3][4]

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 13.40 [1] Core Views - The company is a global leader in the engineering machinery sector, with a comprehensive business layout. It has improved the quality of its traditional earth-moving machinery while achieving rapid growth through emerging sectors like mining machinery and overseas expansion. The company has seen a steady increase in net profit margin over the past two years and a continuous improvement in operating cash flow [1][17] - The domestic demand for excavators is expected to recover, with a projected year-on-year growth rate exceeding 20% from January to August 2025. The company is well-positioned to benefit from this recovery due to its leading position in various engineering machinery segments [2][17] - The global demand for mining and infrastructure is strong, with significant growth opportunities for domestic brands in overseas markets. The company has established a comprehensive global development model, enhancing its market share [3][18] - The mining machinery sector has substantial room for domestic substitution, and the company is expected to leverage the trend towards new energy to achieve rapid growth. The global market for mining equipment is large, with significant opportunities for domestic brands to increase their market share [4][19] Summary by Sections Domestic Demand Recovery - The domestic excavator market is showing signs of recovery, with a year-on-year increase in sales expected in 2024. The company is likely to benefit from this new cycle of demand recovery, particularly in rural and new infrastructure projects [17][20] Export Opportunities - The company has seen a significant increase in overseas revenue, with a compound annual growth rate (CAGR) of 62% from 2020 to 2024. The demand for engineering machinery in South America and Africa is robust, and the company is well-positioned to capture market share in these regions [18][21] Mining Machinery Growth - The global mining machinery market is expected to grow, with the company focusing on new energy and automation trends. The company has secured multiple contracts for new energy mining equipment, positioning itself for significant growth in this sector [4][19] Financial Projections - The company is projected to achieve a net profit of RMB 7.9 billion in 2025, with a steady increase in revenue and profitability expected through 2027. The target price has been adjusted to RMB 13.40 based on improved valuation metrics [6][11]