Quarterly performance growth was strong, and revenue growth slowed: in the third quarter of 2023, the company achieved revenue of 4.998 billion yuan, an increase of 25.9% over the previous year. Revenue growth slowed, mainly due to weak sales growth of TBM machines and wide-body vehicles, but HAECO's revenue was still growing rapidly. The gross profit margin reached 1,476 billion yuan, an increase of 68% over the previous year, and gross margin reached 29.5%. The sharp increase in gross margin was mainly due to the sharp increase in gross margin of various product segments, especially wide-body vehicles, mining cards, large port machines and small port aircraft. Profit attributable to equity holders was 570 million yuan, up 45.9% year on year. The growth was very strong. It is expected that in the fourth quarter, the company will increase sales in the wide-body vehicle and coal engine business and increase revenue growth.
Future growth highlights in the international market: 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, and the revenue share of this business increased from 17.6% to 20.5%; logistics equipment international market revenue in the first half of the year was 1.77 billion yuan, up 83.3% year on year, and the share of revenue in this business increased from 44.8% to 57.7%. The company's overseas mining card and port machinery sales were strong in the third quarter, and gross margin levels continued to rise, and the gross margin level was high. As the company's 240-tonne and 300-ton mining truck products go offline, and the overseas sales network and personnel layout become more complete, the company's mining equipment international market revenue will continue to grow at a high rate. Meanwhile, in terms of HAECO, the company's telescopic forklifts have already invested in production lines in India. Dagang Machinery continues to receive orders from overseas customers, and the company's HAECO revenue will also grow rapidly. In the future, the international market will become the driving force for business growth.
The Group continues to increase its support: the company expanded 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, and merged into the Group's petroleum equipment business, photovoltaic business and hydrogen energy in 2023. The Group continues to increase its support for Sany International.
Investment recommendations: We expect the company's revenue for 2023, 2024 and 2025 to be 220.44, 305.17 and $38.274 billion respectively, up 41.88%, 38.44%, and 25.42% year on year. Net profit is 22.90, 30.06 and $3,845 million respectively, up 37.57%, 31.25% and 27.91% year on year, with a target price of HK$15.37.
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.