SANY(600031) Huaan Securities·2024-11-08 05:54Investment Rating - The investment rating for SANY Heavy Industry is "Buy" (maintained) [1] Core Views - The company's profitability has significantly improved, benefiting from both cyclical recovery and growth [3] - In the first three quarters of 2024, the company achieved total operating revenue of 58.361 billion yuan, a year-on-year increase of 3.92%, and a net profit attributable to shareholders of 4.868 billion yuan, up 19.66% year-on-year [3] - The company has shown strong cash flow management, with net cash flow from operating activities reaching 12.375 billion yuan, a year-on-year increase of 151.74% [3] - The company maintains strong competitive advantages in core products, with electric machinery strategies driving high growth [4] - The company forecasts revenue for 2024-2026 to be 78.698 billion, 87.056 billion, and 98.356 billion yuan respectively, with net profit attributable to shareholders projected at 5.833 billion, 8.138 billion, and 10.011 billion yuan [4] Financial Summary - For 2023A, the operating revenue is 74.019 billion yuan, with a year-on-year decrease of 8.4%. The projected revenue for 2024E is 78.698 billion yuan, reflecting a growth of 6.3% [5] - The net profit attributable to shareholders for 2023A is 4.527 billion yuan, with a projected increase to 5.833 billion yuan in 2024E, representing a growth of 28.8% [5] - The gross margin is expected to improve from 28.5% in 2023A to 29.2% in 2024E, while the net margin is projected to increase from 6.0% to 7.4% [7] - The company’s return on equity (ROE) is projected to rise from 6.8% in 2023A to 8.3% in 2024E [7]