\u3000\u30 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 25 Xcmg Construction Machinery Co.Ltd(000425) )
Substantial growth in performance and improved profitability
Xcmg Construction Machinery Co.Ltd(000425) in 2021, the operating revenue reached 84.33 billion yuan, a year-on-year increase of 14.0%; The net profit attributable to the parent company was 5.61 billion yuan, a year-on-year increase of 50.6%; The net inflow of operating cash was 8.07 billion yuan, a significant year-on-year increase of 189.4%. Affected by the rising cost of raw materials, the gross profit margin was 16.2%, a year-on-year decrease of 0.8 percentage points; The company continued to promote the cost reduction of the whole value chain, and the net interest rate was 6.7%, up 1.6 percentage points year-on-year.
Pillar sectors performed well, with strong growth in high-tech machinery and other businesses
In 2021, the company’s pillar sector performed well, and the hoisting machinery ranked first in the world for the first time; Piling machinery ranks first in the world; For the first time, road machinery ranks third in the world. In 2021, the company’s sales revenue of other construction machinery was 7.61 billion, a year-on-year increase of 97.8%; The sales revenue of aerial work machinery was 5 billion yuan, a year-on-year increase of 33.9%; The sales revenue of shoveling machinery was 8.12 billion, a year-on-year increase of 22.8%; The sales revenue of piling machinery was 8.95 billion, a year-on-year increase of 22.1%; The revenue of hoisting machinery and road machinery increased by 2.7% / 2.2% year-on-year respectively.
Overseas revenue will continue to grow at a high rate
In 2021, the company’s overseas revenue was 12.94 billion yuan, with a significant year-on-year increase of 111.8%, a record high. The export of medium and large equipment increased by 110.4% year-on-year, the export of pavement machinery increased by 92.1% year-on-year, and the export of truck crane increased by 59.1% year-on-year. XCMG Brazil accelerated the localization of North American model manufacturing and other special work; The North American project has completed the preliminary demonstration and is accelerating its implementation; Schweiying of Germany gives full play to the global network layout and maintains the first place in the high-end market of concrete machinery in Europe and America. We believe that the export sales volume of the company is expected to maintain rapid growth in 2022.
Asset restructuring, improve industrial layout, improve profitability and stimulate operational vitality
According to the asset restructuring plan in April 2021, Xcmg Construction Machinery Co.Ltd(000425) plans to absorb and merge XCMG; After the completion of the transaction, the production supporting assets of XCMG’s mining machinery, concrete machinery, mining machinery, tower crane and other construction machinery will be injected into the listed company as a whole; We believe that it is conducive to improve the industrial layout, expand the listed entities, enhance the direct financing ability and reduce the operation risk. The gross profit margin of injection business is high, which is conducive to enhancing the overall profitability and core competitiveness. At present, the company’s asset restructuring is advancing in an orderly manner as planned. As a continuation of the mixed reform, the company will streamline management levels, optimize governance structure, improve decision-making efficiency, improve incentive mechanism and further stimulate business vitality.
Maintain “buy” rating
Taking into account the impact of changes in the industry boom and rising raw material costs, we lowered the company’s net profit forecast for 22-23 years by 14.2% / 15.1% to 6.02/6.82 billion yuan, and introduced a 24-year net profit forecast of 7.69 billion yuan, corresponding to EPS of 0.77/0.87/0.98 yuan for 22-24 years respectively. The company’s mixed reform is expected to stimulate business vitality and maintain the “buy” rating.
Risk warning: industry competition intensifies the risk; Upstream investment fluctuation risk; Overseas market and exchange rate fluctuation risk
