Performance surge XCMG machinery was given a "buy, increase" rating
performance surge XCMG machinery was given a "buy, increase" rating
China Construction machinery information
the first quarterly reports of listed companies have been fully disclosed, and XCMG once again showed its industry leader to the market. In the first quarter of 2017, the operating revenue of XCMG machinery (000425) was 5.998 billion yuan, an increase of 72.47% year-on-year; The net profit attributable to the shareholders of the listed company was 202 million yuan, with a year-on-year increase of 1809.98%; The basic earnings per share is 0.029 yuan/share. The sales of various products of the company increased in an all-round way
overall growth of industry recovery performance
it is said that there are four pleasures in life: long drought with showers, meeting old friends in a foreign country, wedding night, and golden list. For enterprises, the greatest pleasure is "the improvement of industry prosperity". According to the statistics of the Construction Machinery Association, from September 2016 to March 2017, the cumulative sales volume of excavators on the market was 65315, an increase of 88% over the same period of the previous year. The sales structure of construction machinery products is significantly related to the construction cycle of the project. With the continuous progress of the project construction, the prosperity of the industry is gradually extending from excavator, a leading product, to cranes, loaders, pile drivers and other non excavation products. In February 2017, the sales of loaders and truck cranes in China were 6361 and 1266 respectively, an increase of 91% and 250% over the same period last year. The strong performance of excavator sales continued to maintain the maximum value
the historical records says, "those who are good at fighting are guided by their potential." Using potential is a strategy that has been highly emphasized in China's war and competition for thousands of years. It is precisely taking advantage of the recovery of the industry that XCMG's sales of various products have increased in an all-round way. In March this year, XCMG truck crane sales reached 833 Units, an increase of 106% year-on-year. The monthly working hours were 99.77 hours, an increase of 19 hours over the same period last year. The equipment operating rate was 77.29%, an increase of 1 over the same period last year. The following problems exist: 35 percentage points, showing a warming trend. The year-on-year growth rate of total sales in January also reached 116.2%, rebounding strongly. The sales of excavators can be described as "sesame blossoming and rising", with a breakthrough of 4000 units in the first quarter, more than 1.5 times that of the same period last year. In addition, the sales of crawler cranes, rollers and other products increased in the first quarter
analysts believe that as XCMG ranks first in the market share of cranes, loaders and piling machinery, road machinery ranks first in the domestic industry and fourth in the global industry, the company's performance is expected to benefit fully under the background of the current boom in the construction machinery industry from excavators to non excavation products. In addition, the market concentration of the construction machinery industry has increased after experiencing a trough, and the "Matthew effect" will gradually become significant. As a leading domestic construction machinery enterprise, the company is expected to further highlight its value in the future
good times come.
give a rating of "buy, increase Holdings"
someone once commented on a generation of speculative genius Jesse Livermore, "what people see is numbers, what he sees is regularity." For XCMG, what others see is danger, but what they see is opportunity
from 2011 to 2016, the domestic construction machinery market experienced five years and four months of continuous decline, and the market capacity shrank to less than one third of the high point. A batch of enterprises in the upstream and downstream of the industrial chain either withdrew or collapsed, but XCMG believed that this was a great opportunity to improve market share and carry out transformation and upgrading in 2014. The company has always adhered to the two strategic priorities of "internationalization and technological innovation", and has launched a comprehensive supply side structural reform campaign in accordance with the business philosophy of "internationalization, lean, weaknesses, and sustainability" and the annual business objectives. It has deployed and launched a tough battle for the settlement of accounts receivable of the No. 1 project and an overseas market battle with the strategic goal of 50% of international revenue
"a thousand grinding and ten thousand hitting are still strong, and you can wind east, West, North and south." It is in this spirit that XCMG focuses on risk control and structural adjustment, market segments and medium and high-end customers, and overseas and new industries to achieve a comprehensive improvement in business quality. The Jiangnan industrial concentration area has settled in An'an high-end aluminum production base, Chenlong rare earth alloy plate and rod, Shenwei electronic aluminum alloy electronic parts processing, Fushun photoelectric smart street lamp and other aluminum based new material projects, and the main indicators have seen a key turning point in growth. The two major battles finally achieved solid results: in 2016, the scale of accounts receivable decreased by 2.615 billion yuan, the actual decrease in accounts receivable was 14.53%, the ratio of accounts receivable to operating income decreased from 1.08 in 2015 to 0.91 in 2016, the net operating cash flow increased by 19.3 times, and the asset quality was significantly improved. In addition, the company has actively explored overseas markets, and in the adverse environment of a sharp decline in industry exports, XCMG's total exports have remained absolutely ahead of the industry. In 2016, the overseas operating revenue was 2.774 billion yuan, accounting for 16% of the revenue, and the total export volume remained the first in the industry. Among them, the export revenue of the company's main focus in the Asia Pacific region increased by 40% year-on-year. With the continuous promotion of the national "the Belt and Road" strategy, the company's overseas performance is expected to achieve stable growth
analysts predict that the future will benefit from the recovery of the construction machinery industry. As the industry leader, XCMG's annual EPS are 0.14, 0.21 and 0.28 yuan respectively. The company's performance is expected to exceed expectations, and it is rated as "buy" and "overweight"