LIUGONG(000528) 东吴证券·2024-12-10 05:15Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Views - The company's share buyback and equity incentive plans demonstrate confidence in its long-term development [2]. - The company is expected to benefit from a recovery in domestic demand and ongoing international expansion, leading to significant profit release potential [4]. - The company has a high proportion of earthmoving machinery, which has shown resilience compared to other machinery types, indicating a strong market position [3][26]. Summary by Sections Share Buyback and Equity Incentives - The company announced a share buyback plan using self-owned funds and a special loan, totaling between 300 million to 600 million yuan, aimed at equity incentives or employee stock ownership plans. This marks the largest buyback in the company's history, representing 1.3% to 2.6% of its total share capital [2][20]. - The company has secured a loan of up to 420 million yuan at an interest rate of 1.96%, reflecting confidence in future growth [2][20]. Domestic Recovery and International Expansion - The company has a significant focus on earthmoving machinery, which has a lower correlation with the declining infrastructure and real estate sectors. This segment has already shown signs of recovery [3][24]. - The company is actively expanding its product range while maintaining a strong focus on earthmoving machinery, which accounted for 57.8% of its revenue in 2023 [3][26]. Profitability and Financial Forecast - The company is progressing steadily with its internationalization strategy, achieving an overseas gross margin of 29.1%, significantly higher than the domestic margin of 18.2% [4][30]. - The report forecasts the company's net profit for 2024-2026 to be 1.57 billion, 2.03 billion, and 2.81 billion yuan, respectively, with corresponding P/E ratios of 15, 11, and 8 times [4][37].