SANY(600031) SINOLINK SECURITIES·2024-10-31 00:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 58.36 billion RMB for Q3 2024, a year-on-year increase of 3.92%, and a net profit attributable to shareholders of 4.868 billion RMB, up 19.66% year-on-year. Q3 alone saw a revenue of 19.3 billion RMB, reflecting an 18.87% increase year-on-year, and a net profit of 1.295 billion RMB, which is a significant 96.49% increase year-on-year, aligning with expectations [1] - The company is benefiting from a domestic and international market recovery, particularly in the excavator sector, where domestic sales saw a notable rebound in Q2 and Q3 2024. The company, as a leading player in the domestic excavator market, is expected to continue experiencing accelerated revenue growth in the coming years, with projected revenue growth rates of 5.9%, 12.0%, and 15.3% for 2024-2026 [1] - The overseas revenue accounted for over 60% of total revenue, enhancing overall profitability. In H1 2024, overseas revenue reached 23.542 billion RMB, a year-on-year increase of 4.79%, with a gross margin of 28.32% in Q3 2024, indicating strong profitability driven by international market expansion [1] Summary by Sections Performance Overview - For the first three quarters of 2024, the company achieved revenues of 17.83 billion RMB, 21.23 billion RMB, and 19.3 billion RMB, with year-on-year changes of -0.95%, -3.16%, and +18.87% respectively [1] - The company’s net profit for the same periods was 4.868 billion RMB, 5.2 billion RMB, and 1.295 billion RMB, with year-on-year changes of -64.49%, 5.96%, and 96.49% respectively [1] Revenue and Profitability - The company’s projected revenues for 2024-2026 are 78.344 billion RMB, 87.724 billion RMB, and 101.163 billion RMB, with corresponding net profits of 6.075 billion RMB, 8.543 billion RMB, and 11.187 billion RMB, leading to a PE ratio of 24, 17, and 13 respectively [1][3] Market Dynamics - The domestic excavator market saw significant recovery, with sales in Q2 and Q3 2024 increasing by 21% and 20% year-on-year, respectively. The company is well-positioned to capitalize on this growth due to its market leadership [1] - The international market also showed positive trends, with excavator exports recovering, contributing to the company’s revenue growth [1]