Xugong Machinery (000425): Doubled performance in three quarterly reports, hitting record high recently

The company released three quarterly reports. In the first three quarters, it achieved operating income of 43.2 billion yuan, a year-on-year increase of 27% and net profit attributable to mothers of 30.

200 million US dollars, a year-on-year increase of 100%; 佛山桑拿网 of which the single-quarter revenue in the third quarter was 12.1 billion US dollars, a year-on-year increase of 19%, and the net profit attributable to the mother was 7.

400 million, an increase of 82 in ten years.


  In the three quarters of business analysis, performance doubled, net profit margin increased, and long-term performance was at a record high.

  30 trillion in the first three quarters of 2019, a record high in the same period, compared with the previous cycle high of 33 in 2011.

800 million, a record high in the ten years of 2019 with high certainty.

  Gross profit margin from January to September 18.

6%, increasing by 0 every year.

7pct; during the period, the cost rate decreases by 1.

8pct, net interest rate increased by 7% every year 2.

6 points.

  In the first three quarters, the net operating 佛山桑拿 cash flow was 31 trillion, a continuous increase of 61%, a record high over the same period.

  In the first half of the year, impairment losses on assets and credit impairment losses8 were made.

9 trillion, continued to accrue in the third quarter of a single quarter2.

500 million credit impairment losses, cleared risks, and continued to consolidate asset quality.

The sales growth rate of truck cranes rebounded in the third quarter, and the sales of excavators exceeded expectations and maintained a high growth rate.

  The sales growth rate of the automobile crane industry narrowed, and the share of Xugong City rebounded: the growth rate of automobile crane sales in July / August was -15% /-4%, and the growth rate in September was 9.

2% reversed the gradual trend, with a gradual growth rate of 32% from January to September.

It is expected that the growth rate of the fourth quarter out of the off-season and the downstream infrastructure construction will gradually pick up and maintain a positive growth.

As the leader of truck cranes, XCMG launched the K-series “reduced version” products to meet the needs of price-sensitive new customers, and its market share rebounded slightly.

  Excavator sales maintained a higher growth rate than expected, and Xu Di’s market share remained stable: the growth rates of excavator sales in July, August, and September were 11%, 19%, and 18%, respectively, and the sales volume increased in the first three quarters.

At 7%, Xu Di (below the XCMG Group), as the second leader in domestic cities, has a stable share of 14% from January to September.

The reform of the mixed ownership system of the controlling shareholders has progressed in an orderly manner, and corporate governance has reached a new level.

  The company’s controlling shareholder mixed reform is being implemented as planned.

The reform of the system has brought new vitality to growth. In the future, the company is expected to lay a foundation for the follow-up allocation of incentives, employee shareholding platforms and other measures in XCMG’s limited dating strategic investors, and stimulate development momentum.

The parent company’s excavators and other high-quality assets do not rule out injections in the future, and the company expects to benefit in many ways.

  Earnings forecast and investment recommendations Net profit is expected to be 39/48/54 million in 2019-2021, an increase of 90% / 25% / 12%, and a compound growth rate of 38%.

EPS is 0.



69 yuan; PE is 9.



6 times.

To 10 times the PE in 2020, the target price from June to December is 6.

2 yuan.

Maintain “Buy” rating.If the excavator is injected, it is expected that the excavator business of XCMG is reasonably estimated to exceed 20 billion yuan.

  Risk warnings: Infrastructure real estate investment is less than expected; sales risk of some product industries; exchange rate risk.