LIUGONG(000528) 东吴证券·2025-03-29 12:39Investment Rating - The investment rating for the company is "Buy" (maintained) [2][9] Core Views - The company's performance in 2024 met market expectations, with a revenue of 30.06 billion yuan, a year-on-year increase of 9.2%, and a net profit attributable to shareholders of 1.33 billion yuan, up 52.9% year-on-year. The fourth quarter of 2024 saw a revenue of 7.21 billion yuan, a 12.5% increase year-on-year, but a net profit of 0.06 billion yuan, down 84.6% year-on-year, primarily due to impairments and increased expenses [2][3] - The company is optimistic about its international expansion and product diversification strategies, with domestic revenue of 16.3 billion yuan (up 1.5% year-on-year) and overseas revenue of 13.76 billion yuan (up 20.1% year-on-year) in 2024. The company expects significant growth in overseas markets in the long term [2][3] - The gross profit margin for 2024 was 22.5%, an increase of 2.8 percentage points year-on-year, while the net profit margin was 4.6%, up 1.2 percentage points year-on-year. The company achieved a reduction in procurement costs by 5.1% year-on-year [3] Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 30.06 billion yuan, with a year-on-year growth of 9.24%. The net profit attributable to shareholders was 1.33 billion yuan, reflecting a 52.92% increase year-on-year. The earnings per share (EPS) for 2024 was 0.66 yuan [2][10] - The company forecasts revenue of 34.6 billion yuan for 2025, representing a 15% year-on-year increase, with a projected net profit of 2.07 billion yuan, up 35% year-on-year [9][10] Product and Market Analysis - The company reported a revenue of 17.94 billion yuan from earthmoving machinery in 2024, a 12.8% increase year-on-year, with a steady increase in market share for excavators and loaders. The sales of electric loaders increased by 194% year-on-year [2][3] - The company is diversifying its product offerings, with significant growth in other machinery and components, and a 60% increase in mining machinery revenue [3] Cost Management and Profitability - The company has effectively reduced costs, achieving a gross margin of 22.5% in 2024, with domestic gross margin at 17.4% and overseas gross margin at 28.6%. The company is focused on enhancing profitability through cost control and efficiency improvements [3][10] - The company has implemented stock buybacks and equity incentives to boost employee motivation and expand capacity, reflecting confidence in long-term growth [3]