Xugong Machinery (000425): The first quarter will welcome the starter and lay a solid foundation for a high-speed growth
Event: The company released the first quarter of 2019 report on April 30, and achieved operating income of 144 in the first quarter of 2019.
19 ppm, an increase of 33 in ten years.
72%; net profit attributable to mother 10.
530,000 yuan, an increase of 102 in ten years.
74; Basic EPS 0.
128 yuan / share, an increase of 82 in ten years.
86%; expected average ROE 3.
86%, an increase of 1 each year.
The construction machinery 苏州夜网论坛 industry continued its high growth trend in 2018 in the first quarter of 2019.
In 2018, the domestic construction machinery market maintained a strong growth trend, especially the company’s “fist” cranes, and the industry’s overall sales increased significantly by 47.
According to our grassroots research and the state’s 19-year infrastructure, the crane industry has gradually grown at a rate of 30% in 19 years.
As a leading company in the crane industry, the company will fully benefit from the growth of the industry and enjoy the dividends brought by the increase in industry concentration.
The company’s crane product adequacy in the first quarter was good and achieved a significant increase compared to the same period last year.
Judging from the start-up hours, the downstream start-up situation is good, which confirms the high prosperity of construction machinery.
Despite the influence of weather, the company’s crane start-up rate reached 82% in January 19, and the increase was 3pct, which fully shows that the downstream start-up demand is good.
In addition, crane application scenarios do not predict that real estate and infrastructure, municipal engineering, environmental engineering, etc. will require cranes.
The weather started to improve throughout the country in the second quarter, which is conducive to the start of construction, and the company’s various equipment startup data details improved.
The company actively deploys aerial work platforms to further optimize the industrial structure.
The company actively raises aerial platforms using fixed-income raised investment funds, making full use of the technical advantages accumulated in lifting equipment in the early stage, and product competitiveness.
The company’s 18-year high-altitude operation platform sales exceeded 4,000 units. In 19, some new production capacity was put into use, and sales are expected to increase by more than 40%.
At present, the growth rate of domestic high-altitude operation platforms still belongs to the high-speed development industry. The company is expected to seize the growth potential of the industry and create new profit growth points.
Investment suggestion: Based on the judgment of the medium and long-term trend of the construction machinery industry, we are optimistic that the company’s horizontal development will gradually increase the advantageous categories and become the world’s first echelon of construction machinery companies.
We raised the company’s operating income from 2019 to 2021 to be 548 trillion, 652 trillion, 74.7 billion, and net profit was 3.8 billion, 4.4 billion, and 5 billion.
Corresponding PE from 2019 to 2020 are 南宁桑拿 9X, 8X, 7X, maintain “Buy” rating, target price is 6.
Risk reminders: the prosperity of the construction machinery industry has declined; infrastructure has fallen short of expectations; the global economic downturn; other systemic risks, etc.