Zoomlion (000157) Interim Report Comments: Performance in line with expectations Continuous improvement in operating quality
Zhonglian released its 2019 Interim Report, which achieved revenue of 22.3 billion yuan in the first half of the year, an increase of 51 per year.
2%, net profit attributable to shareholders of the listed company 25.
800 million US dollars, an annual increase of 198%, attributable to shareholders of listed companies, deducting non-net profit21.
100 million US dollars, an annual increase of 226%, net operating cash flow of 35.
700 million US dollars, an annual increase of 124%, performance in line with the expectations of the previous announcement, while the increase in net profit growth, operating quality has also improved significantly.
The crane market share increased, and the gross profit margin hit a new high.
Hoisting machinery revenue is 11 billion yuan, an annual increase of 94.
8%, benefiting from environmental protection updates and strong downstream demand, the crane achieved strong growth. The sales volume of the automotive crane industry in the first half of the year2.
50,000 units, a year-on-year increase of 50%, and Zoomlion’s truck crane market share has further increased, an increase of 6 over 18 years.
At 8 points, when the sales volume of the industry increased in July / August, China United still achieved a positive growth of more than tens of percent.
Tower crane business benefited from the stimulus of prefabricated construction policies, and sales volume exploded in the first half of the year. It is expected that the gradual growth of tower crane business is expected to double.
Under the influence of factors such as scale effect and optimization of product structure, the company’s crane gross profit margin also hit a record high, reaching 32.
2%, the increase in the proportion of large tower crane revenue has driven the growth of overall gross profit margin. Concrete machinery revenue 74.
900 million, pump truck sales recovered quickly.
Revenue from concrete machinery in the first half of the year was 74.
10%, an increase of 31% per year.
2%, stimulated by the National Six emission standard, the sales of pump trucks continued to recover rapidly. The existing second-hand pump trucks have been completely processed. It is expected that the sales of new pump trucks will gradually exceed 2,400, and the mixing stations of mixer trucks have also achieved rapid growth.
Gross profit margin of concrete machinery in the first half of 27.
4% is also a new high since 2013. The second mobile phone was cleared, and the increase in the proportion of pump cars contributed to the repair of gross profit margin.
Go light, entertain, optimize asset quality, and repair profitability.
At the end of 17, China United sold its environmental and sanitation assets for 11.6 billion 杭州夜网论坛 yuan, refocused on construction machinery, and completely solved the historical risk problem through investment income to achieve light loading.
Since 2017, the company’s proportion of accounts receivable has been declining, operating cash flow has improved significantly, asset quality has been optimized, and net operating cash flow in the first half of the year.
700 million, significantly higher than net profit.
Benefiting from factors such as product manufacturing upgrades, structural improvements, and clearing of historical issues, China United’s profitability continued to be repaired, with a gross margin of 30% and a net profit of 11 in the first half of 2019.
Seize the potential to enter the new field of aerial work platforms, and it is expected to contribute to the increase in performance in the 深圳桑拿网 future.
Domestic high-altitude operation platforms are in a period of rapid development, and the holdings are still more than doubled.
With years of intensive cultivation in the crane field, Zoomlion has entered the field of aerial work platforms. It has built an intelligent assembly line and launched a number of new products. Especially in the arm-type field, Zoomlion’s R & D technology has obvious advantages and is expected to contribute to incremental performance in the future.
Under the pressure of economic downturn, construction machinery is highly deterministic.
Under the downward pressure of the economy, the core downstream investment in construction and real estate of construction machinery strives to maintain steady growth. Gradually, the upgrade of the National Six emission standards will also help cranes.
Renewal of concrete machinery and other equipment.
In the first half of the year, Zoomlion’s pump trucks and mixer truck businesses achieved high-speed growth, and the capacity of truck cranes was released, increasing its market share to about 30%.
Benefiting from the dividends of the prefabricated construction policy, the sales of Zhonglian ‘s fist products tower cranes continue to be hot, and it is expected to achieve sales growth of more than double, with high certainty.
Performance forecast and investment advice.
Zoomlion has refocused on construction machinery and realized light loading. As a result, assets and operating quality have improved significantly!
We forecast Zoomlion’s revenues in 2019/2020 to be 39.1 / 46.9 billion U.S. dollars. It is estimated that the tower crane business will exceed 8 billion U.S. dollars in 2019, and engineering cranes (cars + crawlers) will exceed 11 billion U.S. dollars.50%.
At the same time, through the upgrade of the product structure and the clearing of historical issues such as the second mobile phone, the gross profit margin has been further improved.
Estimated net profit attributable to mother 40 in 19/20.4/49.
300 million yuan, corresponding to PE10.
9 times, performance flexibility, highly recommended.
Risk warning: The sales volume of construction machinery has increased significantly, and the gross profit margin of products has fallen.