Zoomlion (000157): The semi-annual report of the post-cycle product force exceeded the expected results

Zoomlion (000157): The semi-annual report of the post-cycle product force exceeded the expected results

Event: Today the company announced that in the first half of the year, its net profit attributable to mothers was 2.4 billion to 2.7 billion, a year-on-year increase of 171% -212%, and the predictions are as follows:Sales of heavy equipment and other products continued to maintain rapid growth, and the market share increased steadily.

The main market segments of construction machinery in the first half of the year included the growth of excavators.

13%, truck cranes increased by 68.

28%, the concrete machinery industry is in the process of continuous recovery.

The company’s core products, such as concrete pump trucks, tower cranes, and engineering cranes, have continued to increase their market share, of which the company’s sales of truck cranes from January to April were 4,196 units, an increase of 90.

17%, the market share reached 27.

98%, an increase of nearly 3pc compared to the same period last year.

2. The company’s profitability has been further improved.

The problems left over from the previous company history are gradually clearing up. With the high down payment ratio of this industry and the higher residual value rate of products, the probability that the current second-hand equipment 苏州桑拿网 currently has a negative contribution to the company’s performance is sometimes;The scale effect brought by the substantial increase in the sales of the company’s products and the strict control of costs and expenses have continuously enhanced its profitability.

3. Driven by multiple sectors, the company’s performance in 2019 is expected to reach a new high.

First of all, the crane and concrete segments will continue to benefit from the prosperity of the industry. The company has obvious competitive advantages in the two markets. It is expected to achieve faster growth than the industry, especially in sub-markets such as tower cranes and pump trucks.Driven by environmental protection and rural markets and other factors, the development space for further breakthroughs in the future. Second, in terms of product layout, the company is increasing its efforts to develop aerial platforms and excavator products. Through continuous product improvement, it will lay a good foundation for the company’s further development;Finally, the company’s second mobile phone problem has been basically cleared, the product structure has continued to be optimized, the industry’s prosperity has continued to grow, and the scale has continued to grow. There will still be room for growth in the company’s gross profit margins in 2019, and the overall profitability is expected to further improve.

Investment advice and rating: Based on the high prosperity of the post-cycle products, we raise the company’s net profit to 39 from 2019-2021.

8 billion, 47.

3 billion, 51.

600 million, corresponding to PE is 11 times, 9 times, 8 times, continue to give a “buy” rating.

Risk warning: real estate and infrastructure investment expansion, the economy is less than expected.