Core Viewpoint - XCMG Machinery is experiencing significant growth in stock price and performance, particularly in overseas markets, raising questions about the sustainability of this trend and potential long-term investment opportunities [1] Group 1: Fundamentals - XCMG Machinery reported impressive results for the first half of 2025, with revenue of 54.808 billion yuan, a year-on-year increase of 10.43%, and a net profit attributable to shareholders of 4.358 billion yuan, up 17.61% [3] - The company's non-recurring net profit surged by 35.57%, indicating strong profitability in its core operations [3] - The revenue from earthmoving machinery reached 17.019 billion yuan, growing by 22.37%, while crane machinery revenue was 10.474 billion yuan, up 3.74% [3] - Overseas revenue was particularly strong at 25.546 billion yuan, a year-on-year increase of 16.64%, accounting for 46.61% of total revenue, with a gross margin of 24.02%, higher than the domestic margin of 20.29% [3] Group 2: Growth Drivers - XCMG Machinery is benefiting from three major growth drivers: 1. Continued strong exports, with expectations of over 10% growth in the second half of the year, supported by enhanced competitiveness of domestic brands and improved overseas channels [4] 2. Recovery in domestic demand due to policy benefits, equipment renewal cycles, and trends in new energy and smart technology [4] 3. A surge in new productivity, with revenue from new energy products growing by 9.43% and high-end products increasing by 41.44%, particularly in AI-driven machinery [4] Group 3: Valuation - The company is considered undervalued, with a current price-to-earnings ratio (TTM) of approximately 17.56 and a price-to-book ratio (LF) of about 1.83 [5] - Three institutions have rated the stock as undervalued, with target prices around 11.62 yuan and 11.22 yuan based on a 17 times PE ratio for 2025 [5][6] - The valuation is below the industry average and is at a relatively low position compared to the historical percentile over the past five years, indicating a high safety margin [6] Group 4: Technical Analysis - The stock price of XCMG Machinery is currently fluctuating between a resistance level of 10.36 yuan and a support level of 9.49 yuan, with an average trading cost of 8.46 yuan [7] - The stock has gained attention from investors, with increasing concentration of holdings, suggesting potential for range-bound trading strategies [7] Group 5: Long-term Strategy - For long-term investors, it is advisable to look for buying opportunities during price corrections, as the current valuation is at a relatively low historical level and institutions are generally optimistic [8] - Monitoring overseas business growth and cash flow is crucial, as high growth and margins in international markets are key profit sources, alongside a significant improvement in operating cash flow, which increased by 107.56% year-on-year in the first half of 2025 [9]

7月29日，在国家能源集团新疆红沙泉二号露天煤矿（以下简称"红二矿"），58台无人驾驶矿卡正高效运转，其中52台为纯电动车型， 标志着该矿在纯电无人驾驶运输领域取得突破性进展。截至目前，这批无人矿卡已累计安全运行50万公里，并实现运输环节零碳排放，为 我国露天煤矿智能化、绿色化运输提供了可借鉴的实践经验。 纯电+无人驾驶，破解矿山运输痛点 红二矿年产能2000万吨，土石方剥离与煤炭运输任务繁重。传统燃油矿卡不仅能耗高、排放量大，且驾驶员长期在恶劣环境下作业， 存在安全与用工难题。2025年1月起，该矿分批投用58台无人驾驶矿卡，其中52台采用纯电驱动，有效解决了燃油成本高、碳排放大的行 业痛点。 "批量应用纯电无人驾驶矿卡，实现了运输环节零碳智能，不仅从根本上降低了传统矿山运输中的安全风险，运输效率也得到了显著提 升，展现了现代矿山绿色化、智能化发展的新方向。"红二矿总工程师白晟华介绍。依托智能调度系统，无人矿卡可自主规划最优路径，精 准装卸，并实时感知路况，大幅提升运输安全性和稳定性。 智能调度+远程监控，改善矿山工作模式 在红二矿智能云控中心，操作人员通过大屏实时监控矿卡运行状态，360°视角让远程操控如 ...

Summary of Key Points from Conference Call Records Industry Overview - The records focus on the **autonomous vehicle industry**, particularly in logistics, mining, military, and agriculture sectors [1][3][4][13]. Core Insights and Arguments - **Growth in Autonomous Forklifts**: In China, companies have seen order growth rates of **50% to 100%** for autonomous forklifts, enhancing warehouse space utilization and operational efficiency [1][3]. - **Robotaxi Development**: Multiple companies plan to mass-produce Robotaxis by **2025**, with Tesla already launching its RoboTaxi service in Austin, Texas, marking a significant step towards the commercialization of autonomous taxis [1][3]. - **Mining Sector Innovations**: XCMG has delivered **100 electric autonomous mining trucks**, marking the first large-scale delivery of such vehicles globally. Other companies like SANY and Zoomlion are also investing in autonomous mining machinery [1][3]. - **Military Applications**: Autonomous combat platforms are emerging, showcasing new collective combat paradigms, with innovations like "mechanical wolf packs" being presented at military exhibitions [1][4]. - **Market Size Projections**: The global warehouse automation solutions market is projected to grow from approximately **471.1 billion RMB** in **2024** to **804 billion RMB** by **2029**, with a compound annual growth rate (CAGR) of about **11%** [1][8]. Additional Important Insights - **AMR vs. AGV**: Autonomous Mobile Robots (AMR) are expected to outperform Automated Guided Vehicles (AGV) in flexibility and intelligence, with the global AMR solutions market projected to reach **162.1 billion RMB** by **2029**, growing at a CAGR of **33%** [2][12]. - **Automation Adoption in Warehouses**: Approximately **80%** of the **180,000** warehouses globally have not yet adopted automation solutions, indicating significant growth potential for autonomous forklifts and other automated solutions [9][10]. - **Industry Chain of Autonomous Forklifts**: The industry chain includes upstream components like sensors and hardware, midstream manufacturing, and downstream applications in material handling and warehousing [6]. - **Traditional Forklift Applications**: In China, traditional forklifts are primarily used in manufacturing (52%) and logistics (16%) [7]. Conclusion - The autonomous vehicle industry is poised for rapid growth across various sectors, driven by technological advancements and increasing market demand. The significant potential for automation in warehouses and the military, along with the development of AMR technology, highlights the evolving landscape of this industry.

Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company is advancing towards becoming a global leader in the engineering machinery sector, highlighted by the delivery of 100 units of fully electric unmanned mining trucks to Huaneng Yimin Open-pit Coal Mine [2] - The company has established a global framework agreement with mining giant BHP for the supply of mining equipment, indicating a significant expansion in its mining machinery footprint [2] - The mixed reform benefits are becoming evident, with a notable reduction in financing leasing obligations by 9.8% year-on-year [3] - The company aims to rank among the top three globally in the mining machinery sector, having been listed among the top five manufacturers of open-pit mining equipment for six consecutive years [3] - A commitment to shareholder returns is demonstrated through a planned dividend of 2.08 billion yuan for 2024 and a share buyback program totaling 3-6 billion yuan [3] Financial Forecast and Valuation - Revenue projections for 2025-2027 are 1050 billion yuan, 1282 billion yuan, and 1542 billion yuan, reflecting year-on-year growth rates of 15%, 22%, and 20% respectively [4] - The net profit attributable to shareholders is forecasted to be 7.8 billion yuan, 9.8 billion yuan, and 11.9 billion yuan for the same period, with growth rates of 30%, 25%, and 21% respectively [4] - The company is expected to maintain a price-to-earnings (P/E) ratio of 12, 9, and 8 for 2025-2027 [4]