Core views
The company's revenue growth rate was strong in the first three quarters of 2023, mainly due to the relatively stable growth rate of major products in the domestic market. In overseas markets, the penetration rate of electrified products such as electric wide-body vehicles and small port machinery continued to increase, and the market for new products such as electric wheel mining trucks and telescopic forklifts developed smoothly. Under the support of the two, overseas business maintained rapid growth; at the same time, regional structure optimization and product structure high-end product structure increased gross margin significantly year-on-year. Looking ahead, the company's overseas business is expected to achieve continuous growth, driven by factors such as production capacity layout, channel integration, and product upgrades.
occurrences
The company released its report for the third quarter of 2023. In the first three quarters, the company achieved operating income of 15.837 billion yuan, a year-on-year increase of 36.5%, net profit of 1,772 billion yuan, an increase of 36.7% over the previous year; Q3 achieved revenue of 4.998 billion yuan, an increase of 25.9% over the previous year, and realized net profit of 570 million yuan, an increase of 45.9% over the previous year.
Brief review
Overseas business maintained rapid growth, and profitability increased markedly
In the first three quarters of 2023, the revenue growth rate of major products in the domestic market was relatively stable, while overseas revenue continued to grow rapidly. Among them, the electrification and new product markets were clearly developing. ① Judging from mining equipment, the company's wide-body vehicles and electric wheel mining cards continued the rapid growth trend in the first half of the year. Electric wide-body vehicles have been successfully sold to the European market in batches, and the share of electrified products is expected to increase. The share of electrified products is expected to increase; judging from electric wheel mining cards, the company's 150-ton products have received large orders from overseas this year, and the product load is gradually moving from 150 tons 200 More than a ton of upgrades are expected to enter the procurement systems of mining enterprises in South America, Australia, etc. through price advantages and product quality.
② Judging from logistics equipment, the delivery capacity of the company's Dagang Machinery products increased markedly after the production capacity was expanded. In September alone, the delivery of 6 RTGs at Oakland Port in California and 9 RTGs in another project was achieved; the electrified front cranes, stackers, and electric collection trucks in Xiaogang Machinery products entered the four major international operators, including APMT and PSA. This is also the first time that APMT has purchased electric collection cards from Chinese suppliers, laying the foundation for subsequent in-depth cooperation between the two; judging from the new product - telescopic forklift, the company's production capacity in India continues to rise, so far America, Supply from major leasing companies in Europe and other countries still have plans to expand overseas production in the future, and supply capacity is expected to increase further.
③ Looking at oil and gas equipment, previously the company's business was mainly domestic, and the time for overseas team formation was relatively short; on September 4, the company signed a strategic cooperation agreement with international oil service giant Schlumberger's North Asia region. This move will help the company's oil and gas equipment go overseas quickly, and is expected to achieve a rapid increase in the share of overseas business.
Looking ahead, the company's overseas business is expected to achieve continuous growth, driven by factors such as production capacity layout, channel integration, and product upgrades.
Profitability improved markedly: in the first three quarters, the company achieved a gross profit margin of 27.2%, a year-on-year increase of 3.9 pct, a net profit margin of 11.2%, which is basically the same as the previous year; in the third quarter, a gross profit margin of 29.5%, an increase of 7.2 pct over the previous year, a net profit margin of 11.4%, an increase of 1.56% over the previous year. The significant increase in profitability is mainly due to:
① The share of revenue in overseas regions has increased, and the significant reduction in shipping prices has reduced the pressure on the cost side; ② the increase in the share of electric wide-body vehicles, small port motors, and electric wheel mining cards with high gross margins has driven the center of gross margin upward; ③ the company has actively screened orders and strengthened customer management, resulting in an increase in the profitability of in-hand orders.
Investment advice: The company's traditional business sector is expected to continue to maintain competitiveness. At the same time, new products and electrification overseas markets are expanding smoothly, and the business scale is expected to continue to increase. The company is expected to achieve operating income of 22.081 billion yuan, 29.488 billion yuan, and 35.569 billion yuan respectively from 2023 to 2025, with year-on-year increases of 42.12%, 33.55%, and 20.62%, respectively, and net profit of 2,31.85 billion yuan, and 3.883 billion yuan respectively, corresponding to PE of 12.99x, 9.51x, and 7.78x, respectively, maintaining the “buy” rating.