SANY(600031) Guotai Junan Securities·2024-11-04 10:09Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company, as a leader in the domestic engineering machinery industry, is benefiting from the recovery of the domestic market and has strong international competitiveness, which is expected to drive performance growth [2][3] - The company has shown effective cost reduction and quality improvement, leading to an upward revision of the EPS forecast for 2024-2026 to 0.72, 0.94, and 1.21 yuan respectively [3] - The target price has been raised to 21.62 yuan, reflecting a PE ratio of 30 times for 2024, considering the company's leading position and superior performance compared to peers [3] Financial Performance Summary - For the first three quarters of 2024, the company achieved operating revenue of 58.36 billion yuan, a year-on-year increase of 3.9%, with Q3 revenue reaching 19.3 billion yuan, up 18.9% [3] - The net profit attributable to shareholders for the first three quarters was 4.87 billion yuan, up 19.7%, with Q3 net profit at 1.3 billion yuan, a significant increase of 96.5% [3] - The company's gross margin for Q3 2024 was 28.9%, a decrease of 1.1 percentage points, while the sales expense ratio, management expense ratio, R&D expense ratio, and financial expense ratio all showed significant declines [3] Strategic Developments - The company is leading the industry's trends in digitalization, electrification, and internationalization, with successful advancements in electric product categories and a significant portion of revenue (over 60%) coming from international markets [3] - The company is effectively avoiding trade frictions through its global manufacturing layout and has rapidly opened up foreign markets, contributing to steady performance growth [3]