国改激发新动能，国际化、多元化驱动成长

Investment Rating - The report assigns a "Buy" rating to the company, with a target PE of 15x for 2024 and 11x for 2025 [80][92] Core Views - Domestic construction machinery industry is expected to bottom out in 2024, with a potential new upward cycle driven by equipment renewal and electrification trends [80][141] - Overseas expansion remains a key growth driver, with Chinese brands still in a rapid growth phase in international markets [80][165] - The company has strengthened its global competitiveness through product innovation, smart manufacturing, and a complete supply chain system [11][92] Domestic Market Analysis - Domestic demand showed signs of recovery in March 2024, with excavator sales increasing 9.3% YoY [116] - The industry is expected to enter a renewal cycle in 2024, with an estimated 8-year excavator fleet size of 1.698 million units [141] - Electrification is accelerating, with electric loader sales surging 224% YoY in 2023 [141][155] Overseas Expansion - Overseas revenue reached RMB 11.46 billion in 2023, up 41% YoY, accounting for 41.7% of total revenue [39][60] - The company has established 20 manufacturing bases, 5 R&D centers, and 17 regional parts centers globally [92] - Overseas gross margin reached 27.74% in 2023, significantly higher than domestic operations [183] Product Portfolio - The company has achieved full electrification across multiple product lines, with electric loaders maintaining the leading market share [30] - Non-excavator equipment exports outperformed excavators in 2023, with tower cranes and concrete mixers showing strong growth [15][8] - The company has diversified into new sectors including prestressed machinery, aerial work platforms, and agricultural machinery [77][189] Financial Performance - 2023 revenue reached RMB 27.52 billion, up 3.93% YoY, with net profit attributable to shareholders increasing 44.8% to RMB 868 million [175] - Gross margin improved by 4.02 percentage points to 20.82% in 2023, driven by higher overseas sales [183] - The company issued RMB 3 billion in convertible bonds to fund smart factory projects and R&D initiatives [168] Competitive Advantages - The company has achieved over 80% localization rate for key components, including hydraulic parts and transmissions [11] - Smart manufacturing capabilities have been enhanced through lighthouse factory construction [11] - Market share in excavators has increased from 3.5% in 2010 to 8.2% in 2020, with further growth potential [189] Strategic Initiatives - The company implemented a stock option incentive plan in 2023, covering 1,100 key employees [13] - Through mixed-ownership reform and asset restructuring, the company has optimized its corporate structure and improved competitiveness [19][82] - The company is actively expanding in RCEP markets, with significant growth in Indonesia and Australia [39][34]