The controlling shareholder of the company is Shandong Heavy Industries Group, the actual controller is the Shandong Provincial State-owned Assets Administration Commission, and Weichai Power is the second largest shareholder, with a shareholding ratio of 15.78%. Shandong Heavy Industries Group is a multinational industrial equipment group with leading domestic and global influence. Its subsidiaries include Weichai Power, Sinotruk, Shaanxi Auto Heavy Truck, Weichai Revo Smart Agriculture, Shantui Co., Ltd., Zhongtong Bus, Fastest Transmission, Hande Axle, Italian FERRETTI, German Kaiao Group, German Linde Hydraulics, American Dematic, American PSI, France Baudouin, Canada Ballard, etc., and there are various domestic and international synergy effects between the brands.

The collaborative arrangement of the main engine and accessories strengthens the excavator on the basis of a stable position of the bulldozer. The company's main products are divided into three parts: construction machinery mainframes, accessories, and other businesses. Main engine products include bulldozers, loaders, excavators, pushers, mining trucks, graders, etc., while accessory products correspond to main engine products, including chassis parts, wear parts, etc. required for bulldozers, excavators, and loaders. The company's flagship product, the bulldozer, is in a stable position, with a global market share of 19%. The SD60 and SD90 series of ultra-high horsepower models fill technical gaps and achieve localized replacement; at the same time, products such as pure electric bulldozer DE26, LE series pure electric loader, and DH80 full hydraulic bulldozer were launched to complete the product spectrum, and the overall technology reached the international advanced level. While the pace of electrification is accelerating and electric propulsion technology maintains core competitiveness, the company is also actively expanding the types of excavators and loaders, with the aim of further expanding the company's development space.

As one of the representatives of China's high-end manufacturing industry, domestic bulldozers have experienced development for nearly half a century. With the continuous improvement of technology and the gradual expansion of market share, they have created the world's largest bulldozer manufacturing base. This also stems from the huge construction needs of the domestic market. With the gradual advancement of national strategies such as the “Belt and Road”, the domestic bulldozer industry will also play an important role in global construction and become high-end equipment leading the industry.

The company's net profit from 2024-2026 is expected to reach 0.93, 1.24, and 1.58 billion yuan, corresponding to the closing price of November 21, PE is 16, 12, and 10 times, giving the company a “recommended” rating.

Risk warning: Domestic construction machinery industry bottoming out of expectations, export demand and business development falling short of expectations, declining profitability due to increased industry competition, and fluctuations due to rising raw material prices.