SANY(600031) Minsheng Securities·2024-04-29 05:00Investment Rating - The report maintains a "Recommended" rating for SANY Heavy Industry [1][2] Core Views - In 2023, SANY Heavy Industry achieved a revenue of 74.019 billion yuan, a year-on-year decrease of 8.44%, while the net profit attributable to shareholders was 4.528 billion yuan, an increase of 5.53% [1] - The company's gross margin improved to 27.71%, up by 3.69 percentage points year-on-year [1] - The report highlights the positive outcomes of the "Three Transformations" strategy, focusing on globalization, low-carbon initiatives, and digitalization [1] Summary by Sections Financial Performance - In Q4 2023, the company reported a revenue of 17.882 billion yuan, down 17.43% year-on-year, with a net profit of 480 million yuan, down 28.98% [1] - For Q1 2024, revenue was 17.830 billion yuan, a slight decrease of 0.95% year-on-year, while net profit rose to 1.580 billion yuan, an increase of 4.21% [1] - The report forecasts net profits for 2024-2026 to be 7.0 billion, 9.9 billion, and 12.7 billion yuan respectively, with corresponding PE ratios of 19x, 14x, and 11x [1][2] Product Performance - In 2023, excavator revenue was 27.636 billion yuan, down 22.71%, while crane revenue increased by 2.60% to 12.999 billion yuan [1] - The report anticipates a bottoming out of excavator sales in 2024 due to ongoing equipment renewal policies [1] Strategic Initiatives - The globalization strategy has led to sales in over 180 countries, with significant growth in Europe (37.97%) and the Americas (6.82%) [1] - The company launched over 130 new low-carbon products in 2023, achieving significant revenue from electric and hydrogen-powered equipment [1] - SANY Heavy Industry has established 33 "lighthouse factories" recognized by the World Economic Forum, showcasing its leadership in digital transformation [1]