Xugong Machinery (000425): Demand boom continues to improve profitability of lifting machinery

Xugong Machinery (000425): Demand boom continues to improve profitability of lifting machinery

Core point of view: The company released its 18-year annual report and 19-year quarterly report, and achieved operating income of 444 in 2018.

100,000 yuan, to achieve net profit attributable to mother 20.

460,000 yuan, an increase of 100 in ten years.

44%; operating income of 144 in 19杭州夜网论坛Q1.

20 ppm, an increase of 33 in ten years.

7%, achieving a net profit of 10.

5.3 billion, an increase of 103% in ten years.

  The demand for construction machinery continued to be strong in the first quarter, and the company’s revenue increased steadily. According to data from the Construction Machinery Industry Association, domestic sales of excavators in the year 19 were 7.
.

480,000 units, an increase of 24 in ten years.

51%, the domestic truck crane industry achieved sales in January-March1.

240,000 units, an increase of 70 in ten years.

6%.

The company is a leading company in the domestic truck crane industry. The sales volume of truck cranes of Q1 company reached 4,994 units, a continuous increase of 51%, and the company’s market share in Q1 reached 40.

23%, continue to maintain the number one in the country.

Looking forward to 19 years, under the keynote of stable infrastructure construction, demand for construction machinery is trying to maintain stability.

  According to the annual report, the company’s 19-year operating income target is $ 52 billion, with an annual increase of about 17.

09%.

  The operation is more stable, the operation quality is improved, and the profitability has rebounded sharply. In 2018, the company pushed forward the No. 1 project of “Strong Risk Control and Comprehensive Compaction”, focusing on clearing risks, and significantly improving asset quality and profitability.

In 2018, the company’s gross margin / net margin reached 16 respectively.

69% and 4.

6%, but gross margin and net margin increased to 16 in 19Q1.

76% and 7.

3%, net profit margin increased significantly.

In terms of cash flow, operating cash flow in 2018 was 33.
.

09 million yuan, continued to significantly exceed the current profit scale.

  Investment suggestion: We expect the company to achieve operating income of 534/576/583 million in 2019-2021 and net profit attributable to mother 36.

2/43.

2/48.

70,000 yuan, corresponding to the latest PE of the current budget is 10x / 8x / 7x.

In 2019, the PE of comparable A-share companies in the same industry is estimated to be 14x. The company is a leading company in the domestic crane field. According to the practical principle, we give the company a 12x PE for 19 years, and the company’s reasonable value is estimated to be 5.

52 yuan / share, we continue to give the company a “buy” rating.

  Risk reminders: Increased demand for infrastructure and real estate investment; intense industry competition leading to a decline in gross profit margin; final price competition leading to increased risk of accounts receivable; less-than-expected release of capacity leading to insufficient supply.