Zoomlion (000157): Outstanding performance of high-growth companies in the crane industry
Performance summary: The company achieved operating income of 222 in the first half of 2019.
Six ten percent, an increase of 51 per year.
2%; net profit attributable to mother 25.
800 million, an increase of 198 every year.
1%; gross profit margin 30.
0%, net interest rate 11.
The crane industry has grown rapidly and the company’s performance is outstanding.
Benefiting from the demand for downstream infrastructure, increased environmental protection, increased 杭州桑拿网 equipment renewal requirements and artificial substitution effects, the construction machinery industry has a relatively strong economy, and the sales volume of the excavator industry has increased by 14.
2%, the sales growth rate of the truck crane industry reached 53.
In the first half of 2019, the company’s main product production and sales boomed, and its core business, concrete machinery and lifting machinery, respectively achieved revenue of 74.
900 million (+31.
100 million (+94.
8%), comprehensive operating income of 222 in the first half.
600 million (+51.
2%), net profit attributable to mother 25.
800 million (+198.
1%), of which Q2 achieved revenue of 134 in a single quarter.
500 million (previously +58.
9%), net profit attributable to mother 15.
700 million (previously +222.
The gross profit margin of core businesses increased, and the level of profitability continued to increase.
The company focuses on segmenting the market to be stable and deep, and the internal market share of lifting machinery and concrete machinery remains at the forefront. Among them, the internal market share of truck cranes has expanded.
In the first half of 2019, the company’s core business of concrete machines and crane gross profit margins increased to 27.
2%, ten years +5.
2pp, + 3.
8pp, the company’s gross profit margin increased to 30.
0%, ten years +4.
Benefiting from the improvement of operating efficiency, the company’s expense management was well controlled, and the three rates total decreased3.
0pp, of which, the management expense rate decreases by 1 every year.9pp, financial expense ratio decreased by 1.
5pp, the company achieved a net interest rate of 11.
6%, +5 per year.
Strengthen the development of potential markets and promote intelligent manufacturing.
The company actively develops other potential markets, and lays out the earthmoving machinery sales network in advance. The G series of new generation earthmoving machinery products has been launched, and it has accelerated the deployment of aerial work platform products, machine sand, and jet robots.
The company further promotes intelligent manufacturing.
The intelligent factory for tower cranes and the intelligent production line for high-altitude operation machinery will be completed with high efficiency to realize intelligent, automated, and flexible production. The planning and construction of the intelligent manufacturing industrial park for hydraulic vehicles and the industrial park for key hydraulic components will be promoted to promote industrial agglomeration and upgrading.
Profit forecast and rating.
Considering that the industry’s sales volume has grown rapidly in the first half of the year, the company’s growth rate far exceeds that of the industry, and its profitability has continued to increase, we carefully raise our profit forecast.
It is expected that net profit attributable to mothers will be 38-20 in 2019-2021.
0 billion, the corresponding EPS is 0.
64 yuan, corresponding estimates are 11 times, 9 times, 8 times.
Maintain the “overweight” rating.
Risk warning: The downstream infrastructure growth rate is lower than expected risk, product sales may not meet expectations, overseas business operation risk, exchange rate risk.