Zoomlion (000157): Significant increase in revenue and net profit attributable to mothers New products continue to develop
Investment Highlights: Event: The company released its semi-annual report for 2019, and the company achieved operating income of 222.
62 ppm, an increase of 51 in ten years.
23%, net profit attributable to parent company 25.
760,000 yuan, an increase of 198 in ten years.
11%; of which, the second quarter achieved operating income of 132.
45 ppm, an increase of 58 in ten years.
44%, achieving net profit attributable to the parent company of 15.
740,000 yuan, an increase of 222 in ten years.
Profitability improved significantly and cash flow improved significantly.
The company achieved operating cash flow in the first half of the year35.
75 ppm, an increase of 124 in ten years.
19%; reported company gross profit margin 30.
0%, up 4 every year.
41 units; sales expense ratio reached 8.
45%, rising by 0 every year.
21 units; total management and R & D costs5.
71%, down by 1 every year.
11 units; financial expense ratio 2.
76%, down by 1 every year.
The 50 averages are mainly due to the impact of exchange rate changes; the net profit 武汉夜网论坛 rate to mothers reached 11.
57%, an increase of 5 per year.
Seven mergers have significantly enhanced the company’s profitability.
The construction machinery business grew strongly and new products continued to develop.
Reporting baseline, the company’s construction machinery product sales revenue was 210.
160,000 yuan, an increase of 54 in ten years.
62%, achieving a gross profit margin of 29.
74%, an increase of 4 per year.
1) The concrete machinery business realized operating income of 74.
900,000 yuan, an increase of 31 in ten years.
15%, achieving a gross profit margin of 27.
37%, an increase of 5 per year.
21 units; 2) The operating income of lifting machinery business reached 110.
5.0 billion, an annual increase of 94.
75%, achieving a gross profit margin of 32.
17%, an increase of 3 per year.
83 units, of which Hunan Zoomlion Construction Crane Machinery Co., Ltd., a subsidiary, realized operating income of 38.4.3 billion, achieving net profit3.
7.7 billion; 3) Operating income from other machinery and product businesses25.
21 ppm, an increase of 13 per year.
06%, achieving a gross profit margin of 26.
15%, down by 1 every year.
The report pointed out that the company ‘s domestic market share of lifting machinery and concrete machinery has continued to be “one of the best”. Among them, construction cranes and long boom pump trucks continue to maintain the number one position in the industry. The domestic market share of truck cranes has increased by 6 compared with 2018.
Emerging product aerial platforms have made a good start and are expected to become the first echelon enterprise in the field of aerial platforms; earthmoving machinery has completed the nationwide sales and service network layout and is expected to become a strong growth point for the company in the future.
Agricultural machinery remained stable, and financial services business achieved substantial growth.
The company’s agricultural machinery business reported operating income9.
1.1 billion, down 2 a year.
57%, achieving a gross profit margin of 10.
37%, an increase of 0 every year.
The company’s market advantage in the agricultural machinery business remains solid.
Financial services business realized operating income 3.
350,000 yuan, an increase of 73 in ten years.
28%, achieving a gross profit margin of 99.
73%, a decline of 0 every year.
The company’s financing guarantee company operates effectively, cooperates with the industrial sector to improve the industrial chain layout, and through expanding cooperation with the China Enterprise Cloud Chain, the upstream and downstream of the industrial chain can enjoy more reasonable, convenient and flexible financial services, and promote industrial transformation and upgrading.
We expect the company’s EPS to be zero in 2019-2021.
76 yuan / share, the net net asset is 5.
97 yuan / share, the company’s closing price on August 30, 2019 5.
30 yuan / share, corresponding to 1 each of 2019-2021 PB.
89 times, corresponding to 10 each for PE.
Give the company 1 of 2019.
35 times PB, corresponding to a reasonable value range 5.78-7.
09 yuan, corresponding to PE 11 in 2019.
90 times, which is in the range of the estimated level of comparable companies.
Risk reminder: the demand of the construction machinery industry decreases, the agricultural machinery business continues to decrease, new product progress exceeds expectations, and bad debt losses increase.