The third-quarter results were in line with expectations: the company's revenue in the first three quarters of 2022 was 11.6 billion yuan, an increase of 53.8% over the same period last year; the comprehensive gross profit margin was 23.3%, down about 0.6% from the same period last year. The decline was mainly due to changes in sales structure and the increase in international freight charges brought about by the growth of overseas business; the net profit of home was 1.296 billion yuan, an increase of 19.4% over the same period last year, in line with expectations. Excluding the one-time gain of 150 million yuan from the sale of Xinjiang subsidiaries last year, the net profit growth rate is as high as 38.6%. In the third quarter, the company achieved an income of 3.968 billion yuan, an increase of 55.2% over the same period last year; a comprehensive gross profit of 22.15%, down about 1% from the same period last year; and a net profit of 390 million yuan, an increase of 42.2% over the same period last year, continuing the growth trend of the first half of the year.

Further increase in market share, overseas sales ushered in explosive growth: the company's core product competitiveness and market share further improved during the period. In the first three quarters of 2022, the company's mining equipment sector achieved revenue of 7.45 billion yuan, a year-on-year increase of 75.5%, accounting for 65% of the company's revenue. Mainly due to the continuous high demand in the coal industry, the demand for coal machinery and coal machinery related equipment continues to rise, in addition, the company's intelligent product penetration continues to increase, exceeding the average growth rate of the industry; the logistics equipment sector achieved revenue of 3.47 billion yuan in the first three quarters, an increase of 34.7% over the same period last year. The company's robot sector achieved an income of 670 million yuan, basically the same as last year, mainly due to the lack of delivery in the third quarter and the adjustment of the order structure, the proportion of external orders for robots continued to rise. continue to break through new energy, photovoltaic, chemical, cable and other external customers, with Ningde era, honeycomb energy and other strategic cooperation, sufficient orders on hand. In terms of overseas business, overseas sales ushered in explosive growth. In the first three quarters, sales revenue reached 2.81 billion yuan, an increase of 102% over the same period last year, accounting for 24% of revenue. The contribution of overseas sales to revenue continues to increase. The company expects overseas sales revenue to continue to grow next year, and is expected to continue to double the growth rate.

Target price of HK $11.80, buy rating: the company's current product demand is high and there are plenty of orders on hand. At present, the order of the company's mining equipment plate is more than 3.6 billion; the order of logistics equipment plate is more than 4.1 billion; the order of robot plate is more than 1 billion. The company's on-hand order further increases, and the production capacity exceeds the demand. Based on sufficient on-hand orders and the promotion of the company's intelligent, international and electrified strategy, as well as the continued prosperity of the coal industry and the short supply of international shipping, we continue to be optimistic about the company's medium-and long-term development, maintaining the target price of HK $11.80 and maintaining the buy rating corresponding to the 17 times PE valuation center in 2023.