SANY(600031) Minsheng Securities·2024-08-31 03:10Investment Rating - The report maintains a "Recommended" rating for SANY Heavy Industry (600031.SH) [1][2] Core Views - The company reported a revenue of 39.06 billion yuan for H1 2024, a year-on-year decrease of 2.14%, while the net profit attributable to shareholders was 3.572 billion yuan, an increase of 5.08% year-on-year [1] - The company's overseas sales revenue reached 23.542 billion yuan in H1 2024, a year-on-year increase of 4.79%, accounting for 62.23% of total revenue [1] - The company has seen a decrease in operating expenses, with total expense ratios for sales, management, and R&D showing a combined decrease of 0.04 percentage points year-on-year [1] - SANY Heavy Industry is making significant progress in electrification, with 80 new energy products launched in H1 2024 and major breakthroughs in several products [1] Summary by Sections Financial Performance - For H1 2024, the company achieved a gross margin of 28.24%, a slight increase of 0.03 percentage points year-on-year, and a net profit margin of 9.42%, up 0.57 percentage points year-on-year [1] - The company expects net profits for 2024-2026 to be 6.59 billion, 8.07 billion, and 10.13 billion yuan, respectively, with corresponding PE ratios of 21x, 17x, and 13x [2][6] Overseas Business - The African region showed strong performance with revenue of 2.31 billion yuan, a year-on-year increase of 66.71%, while the Americas experienced a slight decline with revenue of 3.79 billion yuan, down 4.19% year-on-year [1] Cost Management - The company has implemented cost-saving measures, resulting in energy savings exceeding 50 million yuan in H1 2024 [1] - The report highlights the ongoing digital transformation efforts aimed at improving production efficiency and reducing costs [1] Technological Advancements - The company has obtained 30 patents related to low-carbon technologies in H1 2024 and has made significant advancements in its new energy product offerings [1]