SANY(600031) Minsheng Securities·2024-10-31 09:01Investment Rating - The report maintains a "Recommended" rating for SANY Heavy Industry (600031.SH) [2][4] Core Views - The company reported a revenue of 58.36 billion yuan for the first three quarters of 2024, a year-on-year increase of 3.96%, and a net profit attributable to shareholders of 4.868 billion yuan, up 20.27% year-on-year [2] - The company has seen a significant improvement in profitability due to effective cost control measures, with a notable decrease in expense ratios during the third quarter [2] - The electricization of construction machinery is accelerating, with the industry penetration rate reaching 10.6% in the first nine months of 2024, an increase of 7.1 percentage points from 2023 [2] Financial Performance Summary - For 2024, the company is projected to achieve revenues of 79.25 billion yuan, with a growth rate of 7.1% [3] - The net profit attributable to shareholders is expected to be 6.514 billion yuan in 2024, reflecting a growth rate of 43.9% [3] - The earnings per share (EPS) is forecasted to be 0.77 yuan in 2024, with a price-to-earnings (PE) ratio of 24 [3][5] Operational Efficiency - The company has successfully reduced its total expense ratio to 18.35% in Q3 2024, down 6.64 percentage points year-on-year, contributing to improved profitability [2] - The sales net profit margin reached 6.95% in Q3 2024, an increase of 2.89 percentage points year-on-year [2] Market Trends - The domestic construction machinery market is showing signs of recovery, with excavator domestic sales reaching 74,000 units from January to September 2024, a year-on-year increase of 8.6% [2] - The overseas market is also recovering, with significant growth in sales of small, medium, and large excavators, with increases of 16%, 32%, and 63% respectively [2]