Finance Association, January 24 (Reporter Huang Lu) The profit side growth rate is higher than that of the industry. The net profit of Zoomlion Heavy Industries (000157.SZ) for the full year of 2023 increased by more than 40% year-on-year. The company said that, first, overseas market expansion has achieved remarkable results; second, the emerging business sector is growing rapidly; third, internal cost reduction and efficiency have increased profitability.

This evening, Zoomlion Heavy Industries released a performance forecast. Net profit attributable to shareholders of listed companies is expected to be 3.38 billion yuan to 3.62 billion yuan in 2023, an increase of 46.57%-56.98% over the previous year.

The continued expansion of overseas business may be one of the main reasons why the company's Q4 and full-year net profit growth rate exceeded expectations. According to the company's three-quarter report, from January to September of last year, the company achieved overseas business revenue of 13.03 billion yuan, an increase of 100.5% over the previous year, and the share of overseas business revenue reached 36.7%. Among them, overseas business revenue in Q3 was 4.66 billion yuan, and the share of overseas business revenue in Q3 increased to 40%, an increase of 5 percentage points over the first half of the year.

A person from the company's securities department told the Financial Federation reporter earlier that China's construction machinery products are cost-effective and have a short delivery cycle. As leading domestic companies improve their overseas channel layout, the penetration rate continues to increase. From a regional perspective, regions along the “Belt and Road” are still the main contributors to the company's exports. The top exported products include construction cranes, earthmoving machinery, and aerial work platforms. The company implements an end-to-end direct business system, and the market coverage and product penetration rate will be further improved.

The company mentioned in the performance forecast that with the gradual commissioning of the Zhonglian Smart Industrial City, manufacturing efficiency and product quality have been further improved. At the same time, it has improved operating efficiency and quality of operation by adopting measures such as the application of new technology/new materials/new processes, comprehensive end-to-end transformation, in-depth digital application, extreme cost reduction, and improvement in the self-control rate of key components.

A relevant person from Zhonglian Heavy Industry told the Financial Federation reporter that the company's overseas business has now covered more than 138 countries or regions, has set up more than 350 overseas business outlets and service centers, and has more than 3,000 overseas employees, of which more than 90% are foreign employees. In the future, the company will strive to achieve the goal of accounting for more than 50% of overseas business.

In addition, according to grassroots research and market research, CME estimates that the sales volume of excavators (including exports) will be around 11,200 units in January 2024, up about 7% year on year, improving from month to month. The largest share of revenue from Zoomlion Heavy Industries was lifting machinery, concrete machinery, earthmoving machinery, etc. In the field of earthmoving machinery, the company's product structure focused on medium to large tonnage excavators with higher gross margins last year, and its share already ranked in the top three in the domestic industry. When receiving research from the agency earlier, Zoomlion Heavy Industries also stated that the issuance of new treasury bonds and special bonds is mainly invested in infrastructure, which will drive construction machinery and equipment to commence, thereby contributing to the recovery of the market. It is estimated that the first half of this year may see the effects of the policy.