机构:招银国际
研究员:Wayne FUNG
Key highlights in 1Q24 results. Revenue grew 13% YoY to RMB11.7bn, driven by overseas growth (+53% YoY to RMB5.7bn) that offset the weakness in China (-9% YoY to RMB6.1bn). Overseas revenue accounted for 48% in 1Q24 (up from 36% in 1Q23), reaching a record high. Blended gross margin expanded 2.3ppt YoY to 28.7%, as gross margin in overseas (>33%) was higher than that in China. Selling & distribution expense ratio increased 0.9ppt YoY to 7.4%, due to more overseas businesses. R&D expense ratio dropped 0.5ppt YoY to 5.7%. Net profit grew 13% YoY to RMB916mn. Operating cash inflow increased 7% YoY to RMB307mn.
Emerging business segments saw strong growth in 1Q24. Excavator: +40% YoY, AWP: +35% YoY, agricultural machinery: +150% YoY, mining machinery: +7x YoY on low base. For traditional segments, overseas revenue growth significantly outpaced domestic sales in 1Q24 (Overseas truck crane: +50%, tower crane: +70%, concrete machinery: +1x)
Excavators outperformed the industry trend. Excavator revenue (+40% YoY) emerged as the second largest segment in 1Q24, which is impressive compared with the weak industry sales (-13% YoY). Management explained that the success comes from the focus on large-size excavators. Besides, the advanced manufacturing capacity enhanced the capability of offering high value added models. The segment gross margin in 1Q24 was ~30% (overseas: 32-33%).