\u3000\u30 Ping An Bank Co.Ltd(000001) 57 Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) )
Event: Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) released the 2021 annual report. The company achieved an operating revenue of 67.131 billion yuan in 2021, an increase of 3.11% year-on-year; The net profit attributable to shareholders of listed companies was 6.270 billion yuan, a year-on-year decrease of 13.88%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 5.828 billion yuan, a year-on-year decrease of 7.61%.
Comments:
The company's performance is under pressure and its profitability is declining. The company achieved a revenue of 67.131 billion yuan in 2021, a year-on-year increase of 3.11%; The net profit attributable to the parent company was 6.270 billion yuan, a year-on-year decrease of 13.88%. The pressure on the company's performance is mainly due to the weakening demand for construction machinery in the downstream industry from April 2021. In 2021, the gross profit margin was 23.61%, with a year-on-year decrease of 4.98 PCT, which was mainly affected by the rise of upstream raw material prices and other factors, resulting in the decline of gross profit margin; The net interest rate was 9.51%, a year-on-year decrease of 1.79pct. In 2021q4, the revenue reached 12.703 billion yuan, a year-on-year decrease of 36.05% and a month on month increase of 6.05%; The net profit attributable to the parent company was 519 million yuan, a year-on-year decrease of 67.44% and a month on month decrease of 42.39%; The gross profit margin was 20.42%, a year-on-year decrease of 8.35 PCT and a month on month decrease of 1.63 PCT; The net interest rate was 4.50%, down 3.65 PCT year-on-year and 2.97 PCT month on month.
The business layout of the three sectors provides momentum for sustainable development. Under the framework of the overall strategy of "equipment manufacturing + Internet" and "industry + finance", the company has carried out relevant diversified layout around equipment manufacturing, and has formed the business layout of construction machinery, agricultural machinery + Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) , and Zoomlion new materials, bringing continuous development momentum. In 2021, the revenue of construction machinery business was 63.523 billion yuan, a year-on-year increase of 3.49%. The company's construction machinery business continued to improve steadily, the sales volume of hoisting machinery and concrete machinery products maintained a leading position in the industry, and the potential business market continued to make breakthroughs. The transformation and upgrading of agricultural machinery business has been accelerated, the product structure has been optimized, and the product upgrading has been vigorously promoted. The Chinese market share of wheat machine, dryer, rotary cultivator, baler and seedling throwing machine has remained at the forefront of the industry Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) realize commercialization and build China's leading digital agricultural scientific research base. The commercial smart farming cloud platform for small-scale farmers, large farmers and the government has been quickly finalized, and the brand foundation of Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) industry leaders has been consolidated. The business of dry mixed mortar equipment has achieved sustained and steady growth, and its market share ranks first in the Chinese market.
Intelligent manufacturing has achieved fruitful results and further promoted the global "localization" strategy. The company has accelerated the intelligent upgrading of production and manufacturing, the construction of intelligent parks, intelligent factories and intelligent production lines have been implemented one after another, the transformation and application of intelligent manufacturing technology, and the coordinated and efficient operation of intelligent systems and intelligent operations, so as to consolidate the foundation of high-quality development of the company. In addition, with the rapid growth of overseas export of construction machinery, the company accelerated overseas reform, continued to focus on key countries and regions, built an overseas business system based on end-to-end, digital and localization, and made breakthroughs in the overseas market. The company's overseas revenue of construction machinery increased by about 51.05% year-on-year.
Investment suggestion: downgrade to "prudent recommendation" rating. The company is one of the leading construction machinery enterprises in China. Affected by factors such as weakening downstream demand and rising raw material prices, the company's performance is under pressure and its profitability is declining. It is estimated that the company's EPS from 2022 to 2024 will be 0.81 yuan, 0.90 yuan and 1.00 yuan respectively, and the corresponding PE will be 8 times, 7 times and 7 times respectively. Downgraded to "prudent recommendation".
Risk warning: macroeconomic downturn risk; Infrastructure / real estate investment is less than expected risk; The issuance of special bonds is less than the expected risk; Risk of weakening overseas demand; Industry competition intensifies risks, etc.
