SANY(600031) SINOLINK SECURITIES·2024-04-29 08:30Investment Rating - The report maintains a "Buy" rating for the company [1][7][9] Core Views - The company reported a revenue of 74.02 billion and a net profit of 4.53 billion for 2023, showing a year-on-year decrease in revenue of 8.44% but an increase in net profit of 5.53% [1] - In Q1 2024, the company achieved a revenue of 17.83 billion and a net profit of 1.58 billion, with revenue decreasing by 0.95% year-on-year but net profit increasing by 4.21%, aligning with market expectations [1] - The overseas revenue accounted for nearly 60% of total revenue, reaching 43.26 billion in 2023, which is an increase of 18.28% year-on-year, indicating successful progress in the globalization strategy [1] - The company is expected to benefit from a new round of replacement cycles in the domestic excavator market, as signs of market stabilization are evident [1] Summary by Sections Performance Overview - The company’s revenue for 2023 was 74.02 billion, with a net profit of 4.53 billion, reflecting a revenue decline of 8.44% and a net profit increase of 5.53% [1][4] - For Q1 2024, revenue was 17.83 billion and net profit was 1.58 billion, showing a revenue decrease of 0.95% and a net profit increase of 4.21% [1] Operational Analysis - The overseas revenue reached 43.26 billion in 2023, accounting for 58.4% of total revenue, with a year-on-year growth of 18.28% [1] - The gross margin for overseas markets was 30.94%, which is 7.98 percentage points higher than the domestic market [1] - The company maintained a high R&D expense ratio of 7.25% in Q1 2024, indicating a strong focus on innovation [1] Profit Forecast and Valuation - The revenue forecast for 2024-2026 is projected at 78.70 billion, 88.00 billion, and 100.88 billion respectively, with net profits expected to be 5.94 billion, 7.78 billion, and 9.59 billion [1][4] - The corresponding price-to-earnings ratios are estimated at 23, 17, and 14 for the years 2024, 2025, and 2026 respectively [1]