\u3000\u30 Ping An Bank Co.Ltd(000001) 57 Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) )
Event: on March 30, the company released the annual report of 2021. In 2021, the company achieved a revenue of 67.13 billion yuan, a year-on-year increase of 3.1%; The net profit attributable to the parent company was 6.27 billion yuan, a year-on-year decrease of 13.9%; The net profit attributable to the parent company after non deduction was 5.83 billion yuan, a year-on-year decrease of 7.6%. The company plans to pay a cash dividend of 3.2 yuan for every 10 shares.
In 2021, the company's operating performance was under pressure and its profitability declined.
(1) in 2021, the company's revenue increased by 3.1% year-on-year, the net profit attributable to the parent decreased by 13.9% year-on-year, and the net profit attributable to the parent decreased by 7.6% year-on-year after deduction. In the fourth quarter, the company achieved a revenue of 12.7 billion yuan, a year-on-year decrease of 36.1%; The net profit attributable to the parent company was 520 million yuan, a year-on-year decrease of 67.4%. In 2021, especially since the second half of the year, the downstream demand for construction machinery such as real estate and infrastructure construction weakened, the sales volume of main construction machinery products decreased significantly year-on-year, and the company's operating performance declined.
(2) in 2021, the company's gross profit margin was 23.6%, a year-on-year decrease of 5.0 percentage points; The net interest rate was 9.5%, a year-on-year decrease of 1.8 percentage points; The weighted average return on net assets was 11.6%, a year-on-year decrease of 5.1 percentage points; The sales expense rate / management expense rate / R & D expense rate / financial expense rate were 5.2% / 2.5% / 5.8% / 0.05% respectively, with a year-on-year increase of - 1.0 / - 0.5 / 0.6 / - 0.2 percentage points respectively. In 2021, affected by the sharp rise in the price of raw materials and other factors, the gross profit margin of the company decreased, but the rate of sales, management and financial expenses of the company continued to be optimized. The R & D expense rate of the company continues to increase. The company adheres to high R & D investment, comprehensively upgrades its technical products, and gradually enhances its competitive advantage.
(3) in 2021, the company's accounts receivable turnover days were 203.1 days, an increase of 42.4 days year-on-year; Inventory turnover days were 98.8 days, a year-on-year decrease of 3.5 days. In 2021, the company's net cash flow from operating activities was 2.63 billion yuan, a year-on-year decrease of 64.6%. The operation quality of the company is still relatively stable.
The competitive advantage of the core sector is prominent, and the emerging sector helps the company stabilize and grow.
(1) hoisting machinery: in 2021, the company's hoisting machinery business revenue was 36.49 billion yuan, a year-on-year increase of 4.6%; The gross profit margin was 23.3%, a year-on-year decrease of 7.7 percentage points. Affected by factors such as the sharp rise in the price of raw materials such as steel, the gross profit margin of the company's hoisting machinery sector fell significantly. In 2021, the company's truck crane products continued to take the lead in the market. The sales volume of truck cranes of 30 tons and above ranked first in the industry, and the year-on-year growth of large tonnage truck cranes exceeded 30%; China's market share of super large tonnage crawler crane ranks first in the industry. The sales of construction hoisting machinery reached a record high, and the sales scale ranked first in the world.
(2) concrete machinery: in 2021, the company's concrete machinery business revenue was 16.38 billion yuan, a year-on-year decrease of 13.7%; The gross profit margin was 24.2%, a year-on-year decrease of 2.1 percentage points. Affected by factors such as weakening downstream demand and national standard switching, the growth rate of the company's concrete machinery revenue declined. However, the company's competitive advantage is still prominent, and the market share of the company's long boom pump truck, on-board pump and mixing plant still ranks first in the industry; The advantages of lightweight mixer products are prominent, and the market share ranks among the top three in the industry.
(3) earth moving machinery: in 2021, the company's earth moving machinery business revenue was 3.24 billion yuan, with a year-on-year increase of 21.5%; The gross profit margin was 18.9%, up 2.9 percentage points year-on-year. The company's earth moving machinery has formed a dual manufacturing base layout of "Weinan + Changsha". Through continuous adjustment of sales structure, the sales volume of Zhongda excavation products with good profitability has increased significantly, and the overall market share has increased steadily.
(4) aerial work platform: in 2021, the company's aerial work platform business revenue reached 3.35 billion yuan, a year-on-year increase of 310.8%. The market performance and customer reputation of the company's products continue to improve, and the market share ranks among the top three in the industry. The overseas sales of high-tech aircraft have covered 58 countries and regions on five continents, and have successively realized cooperation with large leasing companies and end customers in all regions of the world.
(5) agricultural machinery and Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) : in 2021, the company's agricultural machinery business income was 2.91 billion yuan, a year-on-year increase of 9.9%; The gross profit margin was 13.9%, a year-on-year decrease of 2.9 percentage points. The company continues to increase investment in agricultural machinery, and its holding subsidiary Zhonglian Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) Co., Ltd. plans to increase capital and shares; The competitive advantage of agricultural machinery sector continues to strengthen, and the company's market share of wheat machine, dryer, rotary cultivator, baler and seedling throwing machine in China remains at the forefront of the industry Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) realize commercialization.
(6) dry mixed mortar equipment and new materials: in 2021, the company's dry mixed mortar equipment business achieved sustained and steady growth, and its market share ranked first in the Chinese market. The business of new materials for dry mixed mortar has been promoted rapidly. A complete technical team has been established and a multi-functional material pilot production line with an annual capacity of 7000 tons has been built to realize the whole process of material pilot production, which is efficient, automatic and green, and form a strict and efficient production system.
Maintain the "overweight" rating. The company is one of the leading enterprises of construction machinery in China. Affected by factors such as the continued high price of raw materials and the weakening downstream demand, the company's performance in 2021 was under pressure. We lowered the company's profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 7.182 billion yuan, 8.210 billion yuan and 9.390 billion yuan respectively (the value before 2022 and 2023 will be 9.712 billion yuan and 11.706 billion yuan respectively), and the corresponding PE will be 8.1, 7.1 and 6.2 times respectively. Maintain the "overweight" rating.
Risk tips: infrastructure and real estate investment is less than expected, industry cyclical decline, vicious market competition, deterioration of overseas trade environment, performance less than expected risks, etc.
