Core Viewpoint - In 2024, the company achieved significant revenue and profit growth, driven by overseas market expansion and new product development Financial Performance - The company reported a revenue of 14.219 billion yuan in 2024, a year-on-year increase of 25.1% (adjusted) [1] - The net profit attributable to shareholders reached 1.102 billion yuan, up 40.7% year-on-year (adjusted) [1] - The net profit excluding non-recurring gains and losses was 987 million yuan, reflecting a 40.5% year-on-year increase [1] - The gross profit margin for 2024 was 20.1%, an increase of 1.6 percentage points year-on-year [1] Quarterly Performance - In Q4 2024, the company achieved a revenue of 4.382 billion yuan, a year-on-year increase of 14.3% and a quarter-on-quarter increase of 31.7% [1] - The net profit attributable to shareholders in Q4 was 428 million yuan, up 52.5% year-on-year and 67.4% quarter-on-quarter [1] - The net profit excluding non-recurring gains and losses for Q4 was 325 million yuan, reflecting a year-on-year increase of 36.7% and a quarter-on-quarter increase of 28.9% [1] Market and Product Insights - The engineering machinery industry showed steady progress, with domestic markets stabilizing and export levels remaining high [2] - The company's overseas revenue reached 7.411 billion yuan, a year-on-year increase of 26.1%, driven by expansion in regions such as Africa, Europe, the Americas, and Southeast Asia [2] - New product development cycles were significantly shortened, leading to a rapid increase in new product offerings, including high-end products like the DH80 bulldozer and SE series mining excavators [2] - The company completed the acquisition of 100% of Shanzhong Construction Machinery, which exceeded performance commitments with a net profit of 197 million yuan [2] Product and Regional Breakdown - Revenue from main engine products was 9.763 billion yuan, a year-on-year increase of 26.6%, with a gross margin of 23.1% [3] - Revenue from parts and other products was 3.145 billion yuan, reflecting a year-on-year increase of 30.2% with a gross margin of 11.5% [3] - International revenue accounted for 57.4% of total revenue, with a gross margin of 27.4%, while domestic revenue was 5.497 billion yuan, up 29.4% with a gross margin of 10.8% [3] Future Outlook - The company is expected to maintain strong profit growth, with projected net profits of 1.22 billion yuan, 1.46 billion yuan, and 1.75 billion yuan for 2025, 2026, and 2027 respectively [3] - The company is positioned as a leader in the high-power bulldozer market, with significant growth potential in its main engine business [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6]. Core Insights - The company achieved significant growth in 2024, with revenue reaching 14.22 billion yuan, a year-on-year increase of 25.1%, and a net profit attributable to shareholders of 1.10 billion yuan, up 40.7% year-on-year [1][2]. - The company's overseas market expansion has been successful, with overseas revenue of 7.41 billion yuan, representing a 26.1% increase [2]. - The gross profit margin improved to 20.1%, an increase of 1.6 percentage points, driven by the introduction of high-end products and the successful development of new products [2][3]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 14.22 billion yuan, with a net profit of 1.10 billion yuan and a non-recurring net profit of 0.99 billion yuan [1]. - The fourth quarter of 2024 saw a revenue of 4.38 billion yuan, a year-on-year increase of 14.3% and a quarter-on-quarter increase of 31.7% [1]. - The gross profit margin for 2024 was 20.1%, reflecting a year-on-year increase of 1.6 percentage points [1]. Product Performance - Revenue from main engine products reached 9.76 billion yuan, a year-on-year increase of 26.6%, with a gross margin of 23.1% [3]. - Revenue from parts and other products was 3.15 billion yuan, up 30.2% year-on-year, with a gross margin of 11.5% [3]. Regional Performance - International revenue accounted for 57.4% of total revenue, with 7.41 billion yuan from overseas markets, a 26.1% increase year-on-year [3]. - Domestic revenue was 5.50 billion yuan, reflecting a year-on-year growth of 29.4% [3]. Profit Forecast and Valuation - The report forecasts net profits for 2025, 2026, and 2027 to be 1.22 billion yuan, 1.46 billion yuan, and 1.75 billion yuan, respectively [2][5]. - The company is positioned as a leader in the large horsepower bulldozer market, with significant growth potential in its main business [2].