Depth-Company-Xugong Machinery (000425): A full range of sectors work together to help the high-growth operating quality steadily improve

Depth * Company * Xugong Machinery (000425): A full range of sectors work together to help the high-growth operating quality steadily improve

The company released its semi-annual report for 2019: it realized revenue of 311 in the first half of the year.

560,000 yuan, an increase of 30 in ten years.

12%, net profit attributable to mother 22.

8.3 billion, an increase of 106 in ten years.

82%, cash flow from operating activities28.

4.1 billion, an annual increase of 45.

97%.

Key points of support level The entire series of sectors are working together to consolidate their market leadership.

The revenues of the main products of the company in 2019H1 are lifting machinery, shovel machinery, compaction machinery, road machinery, piling machinery, and fire machinery revenues of 114.

78, 29.

95, 10.

75, 6.

41, 34.

39, 10.

21 trillion, an increase of 33 each year.

94%, 11.

83%, 2.

34%, 37.

09%, 44.

74%, 59.

09%, growth in sales of major products was mainly driven by factors such as the construction machinery industry being driven by downstream infrastructure, stricter environmental protection policies, increased demand for equipment upgrades, and manual replacement.

The company 北京桑拿洗浴保健 always adheres to the “three highs and one big” product strategy, and the mobile crane market share ranks first in the world. The domestic 100-ton mobile crane market has a market share of more than 50%, and the truck crane market has reached a historical high of more than 60%.The market share of rotary drilling rigs, horizontal directional drills and graders, road rollers, and pavers has ranked first in the country. The distance between high-altitude operation trucks and industry leaders in the first half of the year has further narrowed. Lifting high-class fire trucks occupy half of the country’s rivers, road sweepers, cleaningThe cars are also ranked in the top three domestic.

The operating quality has been steadily improved, and cash flow has reached a record high at the same time.

The company’s various operating indicators continued to improve, the overall operating quality improved steadily, and the gradual development was further consolidated.

2019H1 company period expenses8.

19%, a decrease of 4 per year.

18pct, of which the sales expense ratio, management (including research and development) expense ratio, and financial expense ratio are 4.

45%, 4.

11%, -0.

37%, respectively reduced by 0.

69, 1.

64, 0.

61pct, basically scale effect, income, exchange gain increase and so on.

The company’s overall gross profit margin was 18.

33%, increasing by 0 every year.

99pct, net interest rate 7.

36%, an increase of 2 a year.

73pct, in which the gross profit margin of the fist product crane increased 3.12pct.

Net inventories fall by 6 per year.

53%, accrued impairment loss 8.

8.7 billion, speeding up the clearing of historical risks.

In the first half of the year, the company continued to focus on risk management and control of sales and realized net cash flow from operations28.

410,000 yuan, an increase of 45 years.

97%, the best history in the same period.

Internationalization has developed smoothly, opening up room for medium and long-term growth.

2019H1 company export revenue 44.

48 ppm, an increase of 20 in ten years.

07%, gross profit margin 20.

96%, an increase of 3 per year.

At 18 points, the company’s international development went smoothly, and the XCMG brand’s export scale and self-operated exports ranked first in the industry.

At present, the company has the largest export market share in 35 of the 65 countries along the “Belt and Road”, and has continued to maintain its industry leadership in the Asia-Pacific region and Africa.

XCA60E all-terrain cranes have been exported in batches, XCA100E has been approved by the German market, XCA300U has successfully entered the North American market, and the company’s products have gradually been recognized by the international high-end customer market. The broad international market is expected to open up the company’s space for long-term growth.

The controlling shareholder’s mixed ownership reform was approved, and future high-quality asset injections are worth looking forward to.

The company’s controlling shareholder XCMG limited mixed reform plan was approved by the SASAC of Xuzhou City in July 2019. At present, the mixed reform work is being implemented as planned. After completion, it will optimize the incentive and restraint mechanism, marketize the selection of personnel, and improve management efficiency.Outstanding promotes employee motivation.

The Group’s overall high-quality assets such as excavators, concrete machinery, and tower cranes are not included in the listed company’s system. There is a gradual injection expectation in the future. In 2019H1, XCMG has sold 19,113 excavators, an increase of 37.

15%, the market share has steadily ranked second in the country, and the market share of tower cranes and concrete machinery has also increased to varying degrees.

It is estimated that based on the continued high prosperity of the industry and the significant improvement in asset quality and profitability, we raise the company’s net profit attributable to its mothers to 39 in 2019-2021.

50/46.

99/51.

53 trillion, the corresponding EPS is 0.

50/0.

60/0.

66, corresponding PE is 8, respectively.

8/7.

4/6.

7x, maintain BUY rating.

The main risks facing rating The boom of the construction machinery industry is expanding, infrastructure and real estate investment growth is slower than expected, and industry competition is worsening.