LECO Latest Report

Performance of the Current Financial Report

Based on Lincoln Electric Holdings (LECO)'s 2024 financial data, its total operating revenue was US$10.22 billion, a decrease of approximately 2.56% YoY, indicating that the company faces certain revenue challenges that may affect its overall profitability.

Key Data in the Financial Report

1. The reasons for the decline in operating revenue include weakened market demand, intensified industry competition, and product line adjustments.

2. Sales costs have increased, from RMB67.7484 million to RMB65.3430 million, which may affect the company's pricing ability and market performance.

3. Net profit decreased by 16.14% in the first three quarters of 2024, showing the pressure the company faces in the market competition.

4. The overall revenue trend in the industry is positive, with the revenue of the electrical equipment industry growing by 7.01% in the first three quarters, in stark contrast to LECO's decline.

Peer Comparison

1. Industry-wide analysis: The overall revenue of the electrical equipment industry is supported by macroeconomic policies and the recovery of market demand, with the industry generally showing a growth trend. LECO's revenue decline may reflect internal market issues.

2. Peer evaluation analysis: Compared with other companies in the same industry, LECO's operating revenue decline is more significant. For example, Midea Group, a company in the same industry, achieved revenue growth during the same period, showing LECO's relatively weak performance in the industry.

Summary

Lincoln Electric Holdings' decline in operating revenue reflects the market challenges it faces, mainly due to weakened market demand, intensified industry competition, and rising costs. Meanwhile, the overall positive performance of the industry further highlights LECO's relative disadvantages, reflecting the urgency of the company's strategic adjustments and the improvement of market competitiveness.

Opportunities

1. With the improvement in the investment climate of the power grid, especially the promotion of ultra-high-voltage construction, LECO has the opportunity to improve its performance by increasing its market share.

2. Product line adjustments may bring new products and new markets to the company, and if successfully implemented, may drive revenue growth.

3. The overall growth trend in the industry provides market opportunities, and LECO can adjust its strategy to adapt to market demand.

Risks

1. Ongoing global economic uncertainty may further suppress customer purchasing intentions, affecting the company's revenue.

2. Intensified industry competition may lead to price pressure, further compressing the company's profit margin.

3. Rising costs (such as raw material and transportation costs) may affect the company's profitability, leading to a continuous decline in revenue and net profit.