Strong performance growth in the first half of the year: in the first half of 2023, the company achieved revenue of 10.84 billion yuan, an increase of 42% over the previous year, mainly because (1) new intelligent and electrified products continued to penetrate the market, which led to a sharp increase in the company's revenue from integrated, wide-body vehicles, small port machines and large port machines; (2) the international market expansion results were remarkable, and international sales revenue increased sharply; (3) newly acquired oil and gas equipment and equipment for emerging industries generated revenue in the first half of the year. Profit attributable to equity holders was 1,202 million yuan, up 32.7% year on year, gross profit margin for the first half of the year was 26.1%, up 2.3 percentage points from the previous year, R&D expenses for the first half of the year were 748 million yuan, up 79.7% year on year, and the R&D expense ratio was 6.9%, up 1.4 percentage points year on year. The increase in R&D expenses was mainly due to a sharp increase in the company's R&D investment in smart mines, smart ports, unmanned driving, equipment for emerging industries and oil and gas equipment, which also provides room for further growth in the future.
The international market is growing rapidly: in the first half of the year, the company's mining equipment international market revenue was 1.48 billion yuan, up 53.4% year on year, accounting for revenue from 17.6% to 20.5%; in the first half of the year, the international market revenue for logistics equipment was 1.77 billion yuan, up 83.3% year on year. The share of revenue in this business increased from 44.8% to 57.7%. As the company's mining truck products carrying 240 tons and 300 tons go offline, and the overseas sales network and personnel layout are more complete, the company's international mining equipment market revenue will continue to grow high; in terms of port machinery, The company's telescopic forklifts have already been put into production line in India. Dagang Machinery continues to receive orders from overseas customers, and the company's Port Machinery will grow rapidly. In the future, the international market will be the driving force for business growth.
The Group continues to increase its support: the company developed the wide-body vehicle market in 2019, merged into the Group's robot business in 2021, merged into the Group's technical equipment company at the end of 2022, merged into the Group's petroleum equipment assets, photovoltaic business and hydrogen energy in 2023. The Group continued to increase its support for Sany International.
Investment advice: We expect the company's revenue for 2023, 2024, and 2025 to be 229.16, 322.03 billion yuan and 42.296 billion yuan, respectively, up 47.49%, 40.53%, and 25.13% year on year, and net profit at 2,331, 30.98 and 3,921 billion yuan, respectively, with a year-on-year increase of 40.02%, 32.88% and 26.59%, with a target price of HK$16.67.
Risk warning: Coal prices and production have declined significantly, international business development has fallen short of expectations, new business investment and development have fallen short of expectations.