Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][6]. Core Views - The company achieved a total revenue of 9.39 billion yuan in 2024, a year-on-year increase of 4.51%, with a net profit attributable to shareholders of 2.51 billion yuan, up 0.40% year-on-year [2][6]. - The first quarter of 2025 saw a revenue of 2.42 billion yuan, reflecting a 2.56% year-on-year growth, and a net profit of 620 million yuan, which is a 2.61% increase year-on-year [2][6]. - The target price is set at 96.4 yuan, with the current price at 73.71 yuan [2]. Financial Performance Summary - In 2024, the company reported a gross margin of 42.83% and a net margin of 26.76%, with a slight year-on-year increase in gross margin but a decrease in net margin due to initial costs from new capacity [2][5]. - The company’s sales, management, R&D, and financial expense ratios for 2024 were 2.3%, 6.3%, 7.7%, and -1.4% respectively, showing increases in sales and management expenses due to business expansion and new subsidiary operations [5][6]. - The company’s revenue projections for 2025 to 2027 are 10.81 billion, 12.62 billion, and 14.87 billion yuan, with year-on-year growth rates of 15.1%, 16.8%, and 17.8% respectively [6][7]. Market and Business Outlook - The domestic excavator market showed signs of recovery in 2024, with sales reaching 101,000 units, a year-on-year increase of 11.7% [5][6]. - The company is expanding its product offerings and has made significant progress in its linear actuator business, which is expected to become a key growth driver [5][6]. - The report highlights the company's strategic focus on high-end products and non-cyclical industries, positioning it for sustained growth despite market fluctuations [5][6].