Sany Heavy Industry Co., Ltd. (600031): Increase + Update Demand, Strong Performance Level Creates Best in History
Report Summary: Event: The company issued an announcement in the first half of 2019, achieving operating income of 433.
86 ppm, an increase of 54 in ten years.
27%; Net profit attributable to shareholders of listed companies 67.
48 ppm, an increase of 99 in ten years.
Demand for investments such as infrastructure and real estate bottomed out, and main products continued to explode.
Benefiting from the promotion of investment and environmental protection, renewal of demand, manual replacement and other factors, the company’s main product excavator realized revenue of 159 in the first half of the year.
100,000 yuan, an increase of 42 in ten years.
56%, gross margin reached 36.
84% per year; concrete machinery income is 129.
23 trillion, an increase of 51 a year.
17%, gross margin reached 29.
55%, the highest level since 2012; lifting machinery revenue of $ 8.5 billion, an increase of 107 in ten years.
24%; the domestic leader of piling machinery and road machinery is stable.
The company’s main product sales and market share continued to increase, demonstrating that the company’s products continue to break through 深圳桑拿按摩网 market competition.
Strong demand overlaps with cost reductions, and multiple business levels create new historical highs.
Company operating income (433.
8.6 billion yuan), net profit attributable to mothers (67.
4.8 billion), period expense ratio (11.
77%), net cash flow from operating activities (75.
9.5 billion) were the best in the first half of history.
We believe that the improvement of the company’s profitability and operating quality has benefited from the large-scale effects brought about by the strong demand of the main product market and the increase in competitiveness. The company has undergone a cycle of baptism to fully understand the asset quality, intelligentize and automate the transformation.And management efficiency improvement effect is significant.
The company’s overall per capita forecast 西安夜网 and profitability levels are more than two-way in 2011.
Underlying demand for updates, demand for excavators was strongly supported.
According to our analysis, the average average startup hours of second-hand excavators produced in 2011 at the peak of the last cycle was 9,417.
In 25 hours, it is expected to reach a breakthrough peak in mid-2020. The demand for construction machinery will continue or exceed market expectations. The company’s performance is expected to be supported. The 2020 emission standard upgrade will also provide incremental demand for construction machinery.
Company profit forecast and investment rating: We expect the company’s operating income for 2019-2021 to be 708 respectively.
34 ppm, 813.
330,000 yuan, 920.
5 billion; net profit attributable to mothers was 108.
7.4 billion, 127.
15 ppm and 143.
3.5 billion; corresponding PE is 10.
86X and 7.
87X, maintain “highly recommended” level.
Risk reminders: 1. The downstream demand of construction machinery is less than expected; 2. The prices of key components change dramatically.