SANY(600031) Tai Ping Yang·2024-09-03 00:03Investment Rating - The report maintains a "Buy" rating for SANY Heavy Industry (600031) with a target price of 20.79, compared to the last closing price of 16.12 [1][4]. Core Views - The company is benefiting from the recovery in the domestic excavator market, with a 0.43% year-on-year increase in excavator segment revenue to 152.15 billion yuan in the first half of 2024 [4]. - The company's overseas revenue reached 235.42 billion yuan, a year-on-year increase of 4.79%, accounting for 60.78% of total revenue, reflecting a continued push for globalization [4]. - Profitability is improving, with a net profit margin of 9.42%, up 0.57 percentage points year-on-year, and a significant increase in cash flow from operating activities, which rose by 2204.61% to 84.38 billion yuan [4]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved revenue of 390.60 billion yuan, a decrease of 2.16% year-on-year, and a net profit of 35.73 billion yuan, an increase of 4.80% year-on-year [4]. - For Q2 2024, revenue was 212.30 billion yuan, down 3.16% year-on-year, while net profit was 19.93 billion yuan, up 5.28% year-on-year [4]. Market Position - The company has maintained its position as the sales champion in the domestic market for 13 consecutive years, with a steady increase in global market share [4]. - Monthly sales from March to July 2024 showed significant year-on-year growth, indicating a positive trend in the domestic excavator market [4]. Future Projections - Revenue projections for 2024 to 2026 are 797.33 billion yuan, 898.77 billion yuan, and 1,031.82 billion yuan, respectively, with net profits expected to be 62.94 billion yuan, 80.03 billion yuan, and 100.48 billion yuan [4]. - The report anticipates a net profit growth rate of 39.0% in 2024, followed by 27.1% in 2025 and 25.6% in 2026 [4].