Zoomlion (000157) company research: Construction machinery boom continues PC demand outbreak

Zoomlion (000157) company research: Construction machinery boom continues PC demand outbreak

Leading in the construction machinery industry, with a variety of products ranking first in the industry.

The company’s core products are lifting machinery and concrete machinery.

The construction crane machinery ranks first in the industry; the automotive crane market continues to climb overall, ranking second in the market; the overall scale of concrete machinery ranks second in the industry, and the advantages in the segmented field are outstanding, and the concrete long boom pump truck maintains the industry first.

  As the industry recovered, the company’s performance rebounded strongly.

Profit, the company’s revenue / net profit continued to grow rapidly.

In 2019H1, the company’s total revenue was 222.

62 ppm, an increase of 51 in ten years.

twenty three%.

The company’s net profit was 25.

760,000 yuan, an increase of 198 in ten years.

11%.

Decline in fixed assets depreciation and revenue / unit staff annual growth have driven the company to gradually improve and continue to improve.

At the same time, the quality of operations continued to improve.

The amount of off-balance sheet repurchase guarantee obligations plus the balance of on-balance sheet accounts receivables and bills accounted for revenue, continuing a downward trend.

In addition, the company’s net operating cash flow continued to reach a record high, reaching 35 in 2019H1.

750,000 yuan, a doubling of the same period last year.

  The infrastructure construction policy has increased, and the prosperity of the construction machinery industry is expected to continue.

Sino-U.S. Trade frictions have intensified, with pressure on imports and exports; overall manufacturing investment has continued to decline under pessimistic earnings expectations; 杭州桑拿 real estate financing has continued to be under pressure, and downward pressure on investment has increased in the second half of the year.

Infrastructure remains an important stabilizer for economic growth.

The recent policy end has increased, and the growth rate of infrastructure investment is expected to pick up.

Introducing industry internal factors such as old machine updates and environmental protection policy stimulus, the booming demand of the construction machinery industry continues.

  From prefabricated construction, demand for medium and large tower cranes was released, and the company fully benefited as an industry leader.

Since the end of 2015, a series of domestic policies have been introduced to promote the development of prefabricated buildings.

It is expected that by 2020, the proportion of prefabricated buildings in the country will account for more than 15% of new construction, and the priority areas will be more than 20%.

Prefabricated buildings stimulated the demand for medium and large-scale tower cranes. By August 2019, Pangyuan Leasing had 1,257 units of PC tower cranes, about 50 times of the beginning of 2016, showing explosive growth.

From the beginning of 2019 to the present, the average new unit price index of Pangyuan Leasing is significantly higher than that in 2018, and the new unit price index in the latest week reached 1567 points, which is higher than the 5-week / semi-annual and annual lines.

The company is a leader in the domestic construction crane industry, and has a leading advantage in the field of medium and large lifting equipment.

In 2019H1, the company’s wholly-owned subsidiary Hunan Zhonglian Construction Crane Machinery Co., Ltd. had a revenue of 38.

4.3 billion, net profit 3.

7.7 billion.

  Profit forecast and estimation.

It is expected that the company’s net profit attributable to its parent in 2019-2021 will be 40.

93, 49.

53, 56.

5.7 billion yuan, EPS 0.

52, 0.

63, 0.

72 yuan / share, corresponding to the current price of PE 11.22, 9.

27, 8.

12 times.

  Covered for the first time, giving “overweight” rating.

  Risk reminder: Infrastructure investment growth is slower than expected; sales credits expand rapidly, reducing terminal profit elasticity; market competition intensifies, and the company’s market share substitute