\u3000\u30 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 25 Xcmg Construction Machinery Co.Ltd(000425) )
Key investment points:
Event: Xcmg Construction Machinery Co.Ltd(000425) released the 2021 annual report. In 2021, the company achieved an operating revenue of 84.328 billion yuan, a year-on-year increase of 14.01%; The net profit attributable to shareholders of listed companies was 5.615 billion yuan, a year-on-year increase of 50.57%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 5.119 billion yuan, a year-on-year increase of 45.27%.
Comments:
In 2021q4, the profitability increased and the revenue control ability improved significantly. The company achieved a revenue of 84.328 billion yuan in 2021, a year-on-year increase of 14.01%; The net profit attributable to the parent company was 5.615 billion yuan, a year-on-year increase of 50.57%. In 2021, the gross profit margin was 16.24%, with a year-on-year decrease of 0.8pct; The net interest rate was 6.70%, a year-on-year increase of 1.64pct. In 2021q4, the company achieved a revenue of 14.532 billion yuan, a year-on-year decrease of 35.93% and a month on month decrease of 12.25%. The company's revenue is under pressure, mainly due to the weakening demand for construction machinery in downstream industries; The net profit attributable to the parent company was 1.005 billion yuan, a year-on-year decrease of 22.35% and a month on month increase of 24.68%; The company further promoted risk control, cost reduction and efficiency increase, and strictly controlled the proportion of four fees from 9.97% to 9.32%, mainly due to the decrease of financial expenses due to the increase of financial revenue; At the same time, with the rising price of raw materials, the net cost of procurement in the whole year was reduced, and the gross profit margin was 18.23%, an increase of 3.31 PCT year-on-year and 2.32 PCT month on month; The net interest rate was 6.82%, up 1.08 PCT year-on-year and 1.83 PCT month on month.
All sectors make concerted efforts, and the overall listing will help the development of the company Xcmg Construction Machinery Co.Ltd(000425) and its parent company XCMG Co., Ltd. have made full efforts in all sectors, and 12 types of main engines rank first in China's industry. With the strong leadership of the crane sector, mobile cranes continue to rank first in the world and truck mounted cranes rank third in the world. Piling machinery and horizontal directional drilling ranked first in the world, road machinery ranked third in the world for the first time, and loaders rose to the top five in the world. In terms of emerging industries, the first position of lifting fire engines and boom aerial work platforms has become more stable, and their profitability has been greatly improved; The revenue of small construction machinery increased by 50% year-on-year; Forklift revenue increased by 258% year-on-year; Asphalt station and chassis maintenance products have entered the top two in the industry. After the overall listing in the future, XCMG's sector excavators (the second in China and the sixth in the world), tower cranes (the second in the world), open-pit mining and transportation equipment (the top five in the world) and concrete machinery (the first camp in the world) will be merged into the company's assets to help the development of the company. The new layout of port machinery has made a rapid breakthrough, and the revenue has doubled; Agricultural machinery and unmanned rescue platform are stepping up R & D and trial production, which will become a new driving force for the company's growth.
Overseas income reached a record high. In 2021, the company's export revenue was 12.94 billion yuan, with a year-on-year increase of 111.81%, accounting for 15.35% of the company's total revenue, with a year-on-year increase of 7.09pct. The key products with rapid growth include the export of medium and large equipment, which increased by 110.4% year-on-year, the export of pavement machinery, which increased by 92.1% year-on-year, and the export of truck cranes, which increased by 59.1% year-on-year. The key regions with high-speed growth include the Asia Pacific region, Central Asia and Africa, with a year-on-year increase of 50.8%, 129.8% and 93.1%, respectively. Major breakthroughs have been made in the high-end markets in Europe and the United States.
Investment advice: maintain the "recommended" rating. The company is one of the leading construction machinery enterprises in China. Under the circumstances of weakening downstream demand and rising upstream raw material prices, the company achieved positive year-on-year growth in revenue performance in 2021. The crane sector of the company will maintain strong core competitiveness, and the overall listing in the future will help the development of the company. It is estimated that the company's EPS from 2022 to 2024 will be 0.85 yuan, 0.92 yuan and 1.04 yuan respectively, and the corresponding PE will be 6 times, 6 times and 5 times respectively.
Risk tips: (1) if the infrastructure / real estate investment is less than expected, the company's product demand will weaken; (2) If the issuance progress of special bonds slows down or the issuance amount is lower than expected, the number of downstream projects will be reduced and the product demand of the company will weaken; (3) If the overseas market reduces the demand for Chinese enterprise products, the company's performance will be under pressure; (4) If the price of raw materials rises sharply, the company's performance will face great pressure.
