SANY(600031) Soochow Securities·2024-04-30 18:30Investment Rating - The investment rating for SANY Heavy Industry is "Buy" (maintained) [1] Core Views - The company's performance in 2023 met market expectations, with a notable recovery in profitability and a strong international expansion strategy [3][4] - The company achieved a total revenue of 74.02 billion yuan in 2023, a year-on-year decline of 8.44%, while net profit attributable to shareholders increased by 5.53% to 4.53 billion yuan [3] - The international revenue share increased to 60.5% in 2023, with significant growth in overseas markets, particularly in Europe and the Americas [4] - The company is expected to maintain a high level of cash flow and collection rates, with a collection rate of 99.38% in 2023 [5] Summary by Sections Financial Performance - In 2023, SANY Heavy Industry's total revenue was 74.02 billion yuan, down 8.44% year-on-year, while net profit was 4.53 billion yuan, up 5.53% [3] - The first quarter of 2024 saw a revenue of 17.83 billion yuan, a slight decline of 0.95%, with net profit increasing by 4.21% to 1.58 billion yuan [3] - The company's gross profit margin improved to 27.72% in 2023, up 3.7 percentage points year-on-year, and the net profit margin was 6.3%, up 0.8 percentage points [5] International Expansion - In 2023, overseas revenue reached 43.26 billion yuan, a year-on-year increase of 18.28%, with the international revenue share rising to 60.5% [4] - The company has established a presence in over 180 countries and regions, with Europe being the fastest-growing area for overseas sales [4] Profitability and Cash Flow - The company is expected to see continued improvement in profitability due to product mix optimization and the high margins from international sales [5] - Operating cash flow for 2023 was 5.71 billion yuan, with a significant increase in cash flow in the first quarter of 2024 [5] Employee Stock Ownership Plan - The company announced a new employee stock ownership plan, aiming to enhance long-term growth confidence, involving a total of 5.92 billion yuan and covering approximately 6,972 employees [9]