Zoomlion (000157): Gale rises, Yun Feiyang focuses on the main business, and then starts

Zoomlion (000157): Gale rises, Yun Feiyang focuses on the main business, and then starts

The sale of equity in the environmental protection industry refocused on the construction machinery industry.

In 2017, 西安耍耍网 the company sold 80% of the equity in the environmental industry at a price of 116 million, and it can also invest in income. The company completely solved the problem of historical bad debts and accrued asset impairment losses of 87.

900 million, shake off the historical burden, repair the balance sheet, achieve light loading, and refocus the main business in the construction machinery and agricultural machinery sectors.

The crane and concrete machinery industry leaders have obvious after-cycle attributes.

In the crane market, the company’s market share is close to 30%, second only to XCMG.

In the concrete machinery market, the company and Sany have basically monopolized the domestic market share.

As the industry recovery enters the post-cycle, the company’s revenue and net profit will fully enjoy industry growth.

In the first three quarters of 2019, the company’s revenue was 317.

55 ppm, an increase of 50 in ten years.

96%, net profit attributable to mother 34.

80,000 yuan, an increase of 167 in ten years.

08%.

Gross profit margin continued to rise, and the quality of operations improved.

The company’s gross profit margin reached 29 in the first three quarters of 2019.

82%, an increase of 3 per year.

45pct, net interest rate 10.

9%, an increase of 4 per year.

78pct.

The company’s expense ratio during the first three quarters decreased by 2 each year.

8pct, reaching 17.

5%.

We believe that due to the effect of scale, the company’s period expense ratio is expected to continue to decrease.

The company’s operating quality is improving, and the accounts receivable turnover rate and inventory turnover rate in the first three quarters of 2019 are 1 respectively.

3/2.

11, increase by 0 respectively.

36/0.

35.

The aerial platform market is expected to contribute incremental revenue.

The domestic aerial work platform market is generally in a period of rapid development, and there is still plenty of room for growth in benchmarking Europe and the United States.

The company’s advanced technology accumulation in the crane and tower crane market has quickly entered the high-altitude operation platform market and has built a fully-processed intelligent production platform, which is expected to contribute to revenue growth in the future.

Profit forecast and investment advice.

We expect the company’s revenues to be 390 in 2019-2021.

100 million, 445.

6.1 billion, 495.

91 trillion, a year-on-year increase of +35.

9%, +14.

2%, +11.

3%, realizing net profit attributable to mother 41.3.9 billion, 50.

1.6 billion, 57.

1.6 billion, a year-on-year increase of +104.

9%, +21.

2%, +14.

0%, EPS is 0.

53 yuan, 0.

64 yuan, 0.

73 yuan, corresponding to PE is 11.

19x, 9.

27x, 8.

12 times.

  Taking into account the industry’s growth prospects and the company’s leading combination, the company’s reasonable estimate is 12 times, and the corresponding expectation is 6.

36-7.

68 yuan, covering for the first time, give a buy rating.

risk warning.

The downstream market demand for construction machinery has shrunk sharply; the prices of raw materials have fluctuated sharply; the overseas market layout has fallen short of expectations; the company’s new product capacity release and promotion have fallen short of expectations; the mitigation of national environmental protection policies has led to increased demand for equipment upgrades; irrational competition in the industry has affected profitinfluences.