\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 031 Sany Heavy Industry Co.Ltd(600031) )
Core view
In 2021, the revenue increased by 6.82% year-on-year, and the net profit attributable to the parent decreased by 22.04% year-on-year. The company achieved a revenue of 106873 billion yuan in 2021, a year-on-year increase of 6.82%; The net profit attributable to the parent company was 12.033 billion yuan, a year-on-year decrease of 22.04%. The decline in performance was mainly due to the fact that the construction machinery industry entered a downward cycle in 2021, the overall prosperity of the downstream infrastructure and real estate industry was low, and the sharp rise in raw material prices and freight charges. In 2021, the gross profit margin / net profit margin was 25.85% / 11.62%, with a year-on-year decrease of 3.97/4.35 PCT. In 2021, the company’s sales / management / R & D / financial expense ratio was 6.27% / 2.59% / 7.20% / – 0.12%, with a year-on-year change of + 0.94 / + 0.39 / – 0.40 / + 0.95 PCTs. The increase in the company’s sales expense ratio was mainly due to the increase in the assistance of agents. The net operating cash flow of the company was 11.904 billion yuan, a year-on-year decrease of 11.29%.
The market share in many fields continued to increase, consolidating the leading position of the company. In terms of business, the company’s revenue of excavation machinery / concrete machinery / hoisting machinery / piling machinery / pavement machinery was 41.750266.74/218.59/51.66/2.706 billion yuan respectively, with a year-on-year change of + 11.25% / – 1.40% / + 12.62% / – 24.30% / – 3.51%. The market share of excavators continued to increase, with sales exceeding 100000, ranking first in the world for 2 consecutive years and first in China for 11 consecutive years; Concrete machine is the world’s first brand; In terms of hoisting machinery, the market share of the company exceeds 40%, of which the market share of truck crane exceeds 31%, ranking first in the country; In terms of pavement machinery, the market share of pavers exceeded 30%, ranking first in China.
Overseas business grew strongly, and many breakthroughs were made in “two innovations and three modernizations”. In terms of internationalization, in 2021, the company’s overseas revenue was 24.846 billion yuan, a year-on-year increase of 76.16%, excluding Putzmeister’s international sales revenue of 19.022 billion yuan, an increase of 109%; Overseas revenue accounted for 23.4%, with a year-on-year increase of 9.2 PCT. In terms of products, the revenue of excavation machinery / concrete machinery / hoisting machinery / piling machinery was 107 / 71 / 41 / 3 billion yuan respectively, with a year-on-year change of + 101% / + 24% / + 137% / + 121%. In terms of market share, the overseas market share of excavators exceeded 6%, with a year-on-year increase of 2 PCTs, and the overseas sales ranked among the top five. Concrete pump truck, truck crane, crawler crane and other businesses have the first market share in many countries. In terms of digitization, the company promoted the construction of 22 lighthouse factories in 2021. At present, 14 have been completed and reached production capacity, the production capacity has been increased by 70%, the manufacturing cycle has been shortened by 50%, and the overall process automation rate has been greatly improved. In terms of electrification, the company made a breakthrough in the sales of electric mixer, dump truck and crane in 2021, and the sales of electric engineering vehicles was nearly 1 billion yuan, ranking first in the industry.
Risk tip: China’s infrastructure investment is less than expected; The risk of recurrent outbreaks.
Investment suggestion: the company is the leader of construction machinery. Although the construction machinery industry has entered a downward cycle in the short term, the company’s core competitiveness has been gradually strengthened, the growth of overseas business is strong, and some hedge industry cycles fluctuate. In the long term, the company’s operation is expected to be steadily upward. Considering the impact of the epidemic on the manufacturing industry, we lowered the net profit attributable to the parent company in 202224 to RMB 126.84/138.80/15.626 billion (RMB 17.390/18.374 billion before 202223), corresponding to PE11 / 10 / 9 times and maintained the “buy” rating.
