Sany Heavy Industry (600031): City share of excavator sales 重庆耍耍网 surpassing expectations in the first quarter increased rapidly
In the first quarter, the cumulative sales volume of Sany excavators increased by 52%, which significantly exceeded the industry’s first quarter of 2019.
5%, the cumulative sales of SANY Heavy Industry Excavator is 19,529 units / + 52 compared with the same period last year.
3%, the market share increased to 26.
2%, an increase of 3 units compared with the end of 2018, and the market competitiveness has continued to improve.
Judging from the 2018 annual report, the company’s profitability is leading the industry, cash flow hits a record high, asset quality is optimized, and the growth rate of transformation infrastructure investment is gradually picking up. We believe that the overall industry assessment has room for repair.
Expected company 2019?
The 重庆耍耍网 EPS in 2021 will be 1.
52 yuan, the target is expected to be 14.
33 yuan, corresponding to PE in 2019 is 13.
15 times, maintaining the “buy” level.
The market share of the excavator, concrete machinery, and pile machinery industry in 2018 was the industry’s first. In 2018, Sany Heavy Industry achieved operating income of 558.
2.2 billion / year +25.
4%; net profit attributable to parent company 61.
1.6 billion / year +192.
3%, the net cash flow from operating activities is 105.
2.7 billion + 22 per year.
The company’s mining machinery sales revenue was 192.
47 ppm / year +40.
8%, the first domestic market share for 8 consecutive years; sales of concrete machinery achieved 169.
64 ppm / year +34.
64%, ranking first in the world.
Lifting machinery sales income 93.
47 ppm / year +78.
26%; 46% of sales income of pile machinery.
9.1 billion / year +61.
Overseas sales revenue in 2018 was 136.
2.7 billion +17 per year.
Improved profitability The company’s ROE reached 19 in 2018.
43%, with an increase of 11 units in advance and a comprehensive gross profit margin of 30.
62%, increasing by 0 every year.
5 units; period expense rate 11.
87%, a significant decrease from 20176.
In the 16 years, among which, the sales expense ratio, management expense ratio, and financial expense ratio decreased by 2 compared with 2017.
2 units; net sales margin is 11.
0%, an increase of 5 a year.
Operating cash flow reached a record high, and the quality of operations improved the company’s net cash flow from operating activities 105.
2.7 billion / year +22.
91%, another record high.
The book balance of the company’s accounts receivable in 2018 was 201.
33 ppm, in the case of a significant increase in the company’s revenue, effectively controlled the scale of accounts receivable, and bad debt provision 25.
500 million, bad debt accrual rate of 12.
7%, the company suffered a bad debt loss of US $ 1 billion in 2018, and the company’s overall asset impairment loss was 10.
95 million U.S. dollars, the amount of overdue transactions decreased, and the overdue rate of value sales was controlled at the lowest level in history; the 2018 balance of off-balance sheet contingencies was 156.
350,000 yuan, the proportion of risk exposure to operating income 64.
1%, continued to decline.
We believe that the risks of aggressive sales over the past few years have basically been cleared.
Maintaining a “Buy” rating, the sales volume of the construction machinery industry exceeded expectations in the first quarter, and the market share of Sany increased faster than expected. We raised the company’s profit forecast.
The EPS in 2021 will be 1.
52 yuan (up 13 in 2019/2020 respectively.
5% / 10%), PE is 12.
The average PE of comparable companies in the domestic industry in 2019 is 13.
The international leading CAT is 11.
With the gradual pick-up in infrastructure growth in 2019, the factors that suppress the estimation of the construction machinery industry will improve. We believe that the overall industry estimate has room for repair, and the upward target is expected to be 14.
33 yuan, corresponding to PE in 2019 is 13.
5?15 times, maintaining the “buy” level.
Risk warning: The domestic economy is down faster than expected; the growth rate of infrastructure investment has not increased as expected, and real estate investment has continued to narrow; the industry’s competitive environment has deteriorated; the market for new products has not been smooth;The impact of profits.