Zoomlion (000157): The repurchase highlights the confidence of the leader and sends a positive signal to the market
Event: On May 13, 2019, the company announced that it intends to limit the amount to RMB 29.
U.S. $ 7.9 billion of own funds repurchased the company’s shares in a centralized bidding transaction, all of which are employee shareholding plans, with a repurchase price not exceeding RMB 7.
63 yuan / share, the proportion of repurchased shares in the total share capital2.
5%, the repurchase period does not exceed 12 months from May 13, 2019.
Comment: Under the background of uncertainty in the trade war and increasing market uncertainty, the company intends to repurchase the company’s employee shareholding plan, which will help promote the company’s healthy long-term development and improve the long-term incentive mechanism;Confidence in future development has sent positive signals to investors; beneficial local expansion and improvement and the development of overseas markets, we judge the company will usher in double performance and estimates, and maintain a highly recommended rating.
The sales volume of post-engineering machinery products increased rapidly, and the company’s advantages were fully utilized.
The total revenue of the company’s cranes and concrete machinery accounts for 79% (2018 annual report data). At the same time, the late period of the excavator is divided. At present, the industry is still in a high state of prosperity. The company’s high-speed growth in 2019 is highly certain.
Among them, ① tower cranes are accompanied by the promotion of prefabricated buildings, with strong demand and abundant orders, and the company ranks first in the industry; ② the sales volume of automobile cranes in 2019Q1 is 12,415, an increase of 69.
65%, the company sold 3429 units, an annual increase of 80.
6%, with a market share of 27.
62% increased by one first.
7pct; ③ The company’s concrete pump trucks have more than doubled their growth rate in 2019Q1, and it is expected that Q2 will continue to grow at a high speed.
The company’s agricultural machinery reduces losses, and aerial work platforms and excavators may become the company’s future performance highlights.
①In 2018, the agricultural machinery segment realized revenue14.
77 ppm, gross margin 6.
88% can be reduced.
China’s agricultural machinery is generally dominated by traditional agricultural machinery, and there is huge space for future economic crops and agricultural machinery.
The company will adjust the agricultural machinery product structure in response to this trend, continue to deepen cost control and capacity integration, coupled with the government’s understanding of agriculture, we judge that the agricultural machinery business will increase losses in 2019.
② The high-altitude operation platform industry is in a transition period in China and continues to grow rapidly. Benefiting from manual replacement, the requirements of building safety regulations are becoming more and more perfect.
The company takes it as a development focus, and began product development in April 2017. At present, the full range of scissor forks has been developed and the design capacity is 1.
20,000 units / year, the production line has entered the operational stage; the technical planning of the arm has been completed, and it will be completed and put into production in May 2019.
Combined with the company’s leasing services, the company’s aerial work platform business will enter the market power stage in 2019, and it may contribute to the performance increase in the future.
③ The positioning of excavators in the high-end market may become a new growth point for performance.
The company’s excavator products are researched and developed by domestic and North American R & D centers to locate the high-end market. The company’s market sales network and channel distributors have been laid out in advance. The G series of new generation earthmoving machinery products has been launched.
Cash flow reached new highs and profitability continued to improve.
① Since the company’s listing, most of the first quarter’s operating cash flow has been negative. During the period of 2003-2016, only 2004 and 2010 were positive for two years. Since this round of industry recovery, the company has a strong sense of risk control and strictly controls payments.Conditions, the cash flow improved significantly, the average down payment ratio reached about 40%, and the overdue rate of new machine sales was less than 1%.
Since 2017, the company’s net operating cash flow has been positive for three consecutive quarters, and it has reached 18 in Q1 of 2019.
670,000 yuan, an estimated increase of 311 in the same period last year.
56%, the highest level in the same period in history. The breakthrough proves that the company’s operating quality is getting better and better, and it has entered a healthy and upward sustainable development channel.
In 2019, the company pays more attention to expected growth and continues to advance4.
0 product engineering, product sales repayments have further improved, and cash flow will still be good.
重庆耍耍网② The company’s Q1 / Q2 / Q3 / Q4 gross profit margins were 25 in 2018.
07%. In 2018, the company concentrated on the release of the second mobile phone. The gross profit margin increased significantly quarter by quarter. In the first quarter of 2019, even the market price competition was fierce. However, the company’s product structure was adjusted, and the proportion of high gross profit products continued to increase.
94pct, at least +4.
68pct, net interest rate reached 10.
88%, +2 from the previous quarter.
14pct, +5 per year.
05pct, the profit level continues to increase.
Investment suggestion: It is expected that the company’s net profit attributable to its mother will be 31 in 2019-2021.
17 and 51.
4 billion, up 57 previously.
86% and 21.
89%; corresponding to EPS 0.
54 and 0.
66 yuan, corresponding to PE12, 9, 7 times.
Maintaining a strong recommendation rating risk reminder: Infrastructure investment is less than expected, and downstream fixed asset investment has increased significantly.