LIUGONG(000528) 东吴证券·2025-03-29 14:23Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [2][9]. Core Insights - The company's 2024 performance met market expectations, with total revenue reaching 30.06 billion yuan, a year-on-year increase of 9.2%, and net profit attributable to shareholders at 1.33 billion yuan, up 52.9% [2][3]. - The report highlights the company's successful international expansion and product diversification strategies, which are expected to continue driving growth [2][3]. - In Q4 2024, the company reported revenue of 7.21 billion yuan, a 12.5% increase year-on-year, although net profit for the quarter decreased by 84.6% due to impairment losses and increased expenses [2][3]. Revenue Breakdown - Domestic revenue for 2024 was 16.30 billion yuan, a 1.5% increase, while overseas revenue reached 13.76 billion yuan, growing by 20.1% [2]. - The company saw significant growth in its earthmoving machinery segment, with revenue of 17.94 billion yuan, up 12.8%, and an increase in market share for excavators [2][3]. - The report notes strong performance in other machinery and components, with revenue of 9.08 billion yuan, a 3.0% increase, and a 12.2% increase in revenue from prestressed machinery [2][3]. Profitability and Cost Management - The company's gross margin improved to 22.5%, up 2.8 percentage points year-on-year, while net profit margin increased to 4.6%, up 1.2 percentage points [3]. - Cost management efforts led to a 5.1% reduction in procurement costs, and the company achieved a product cost reduction rate of 4.3% [3]. - The report emphasizes the potential for long-term profitability improvements through continued cost control and efficiency enhancements [3]. Future Outlook - The company plans to achieve a revenue target of 34.6 billion yuan in 2025, representing a 15% year-on-year increase, with an expected improvement in net profit margin [3]. - The report indicates that the company's diversification efforts in various machinery segments are expected to mitigate cyclical fluctuations in performance [3]. - The company has implemented stock buybacks and equity incentives, reflecting confidence in its long-term growth prospects [3].