SANY(600031) ZHESHANG SECURITIES·2024-09-10 08:03Investment Rating - The investment rating for the company is maintained as "Buy" [5] Core Views - In August 2024, the company's excavator sales saw significant growth, particularly in the African region, indicating a successful global expansion strategy [1][2] - The domestic market has entered a stable upward trend, with small excavator sales increasing by 51% year-on-year, and medium excavators by 44% [2] - The overseas market is also recovering, with small excavator sales up 16% and medium excavators up 32% year-on-year [2] - The company's overseas revenue accounted for 62% of its main business income in the first half of 2024, with a total overseas sales revenue of 23.5 billion yuan, a year-on-year increase of 4.8% [2] - The company has established a strong presence in Africa, with sales reaching 3.5 billion yuan from January to August 2024, a growth of over 60% year-on-year [2] - The company's profitability and operational quality have improved, with a significant increase in operating cash flow by 2204% in the second quarter of 2024 [2][3] Summary by Sections Domestic Market Performance - In August 2024, small excavator sales increased by 51% year-on-year, medium excavators by 44%, and large excavators remained stable [2] - Non-excavator products like concrete and lifting machinery saw a narrowing decline [2] Overseas Market Performance - In the first half of 2024, overseas sales revenue reached 23.5 billion yuan, accounting for 62% of main business income, with notable growth in the African region at 66.7% [2] - The company has a strong foothold in Africa, with over 200 billion yuan in equipment sales since 2002 and a local service network established in 52 countries [2] Financial Performance - The company's revenue for the first half of 2024 was 39.06 billion yuan, a decrease of 2.2% year-on-year, while net profit increased by 4.8% to 3.57 billion yuan [2] - The gross margin for the first half of 2024 was 28.24%, with a net margin of 9.42% [2][10] Industry Outlook - The global construction machinery industry is expected to improve due to increasing export market share, domestic demand recovery, and the initiation of a replacement cycle [3] - Profit forecasts for 2024-2026 indicate a net profit growth of 38%, 29%, and 22% respectively, with corresponding P/E ratios of 21, 16, and 13 [3][4]