Xugong Machinery (000425): Interim profit doubled, operating net cash flow hits record high, and hits record high
Investment Highlights: Event: The company’s 1H19 revenue was 311.
5.6 billion, an annual increase of 30%, net profit attributed to the mother22.
8.3 billion, an increase of 107% in ten years, net of non-attributed net profit 21.
79 ‰, an increase of 116% in ten years, and a gross profit margin of 18.
3%, an increase of 1 per year.
0ppt, net interest rate 7.
3%, an increase of 2 per year.
7ppt, net operating cash flow 28.
4.1 billion, a record high over the same period.
1H19’s main business segment cranes / scrapers / pile machinery / fire-fighting machinery revenue growth rates were 34% / 12% / 45% / 59%.
The gross profit margin of the crane sector increased, maintaining the leading position.
1H19’s crane business achieved revenue 114.
78 ‰, an increase of 34% in ten years, the gross profit margin of the crane business is 24.
9%, an increase of 3 per year.
We believe that the improvement in the gross profit margin of the crane business is mainly due to the high growth in sales revenue. If the crane sales increase steadily in the second half of the year, the gross profit margin of the business will help maintain stability.
In addition, 1H19’s multiple crane products maintain the leading position, among which the mobile crane market share ranks first in the world. It has replaced half of the country in the domestic 100-ton large-ton mobile crane market, and the large-ton crane has an absolute leading position in the industry.The market share of casual truck cranes has historically reached a high level of over 60%.
Asset quality has been consolidated, and overseas and emerging businesses have advanced in an orderly manner.
1H19 company accrued credit impairment losses7.
RMB 340,000 (increased in accounts receivable and changes in accounting policies), asset impairment losses1.
5.3 billion, a total of about 8.
We believe that the company’s substantial provision in the first 杭州夜生活网 half of the year is conducive to consolidating the quality of assets. Considering that the company’s net operating cash flow has created a record high for the same period, we expect the quality of the company’s remaining operating debt (such as accounts receivable) to improve or improve.
In 1H19, the company’s emerging business has progressed in an orderly manner. The company’s environmental compartment removable garbage truck market share ranks first in the domestic domestic industry, and the market share of road sweepers and scrubbers ranks among the top three domestic domestic companies; the first half of aerial work vehiclesThe gap between the market share and the number one in China has narrowed, and we are sprinting towards the number one in the industry.
At the same time, the company’s overseas revenue in 1H19 reached 44.
4.8 billion yuan, an annual increase of 20%.
According to the company’s semi-annual report, citing customs statistics, the export scale of the Xugong brand and its own exports both ranked first in the industry.
Ratings and estimates.
We expect the company’s EPS to be zero in 19-21.
The average 19-year estimated PB of construction machinery comparable companies is 1.
5 times, we think the company’s 19-year reasonable PB estimate interval is 1.
4 times, corresponding to 4 BPS.
33 yuan, the reasonable value range is 5.
20 yuan-6.06 yuan, “continuous market” rating.
Macroeconomic downturn, crane recovery, inventory machine disposal risks.