\u3000\u3000 Xcmg Construction Machinery Co.Ltd(000425) (000425)
Event:
The company released the performance forecast for 21 years. In 2021, the net profit attributable to listed companies is expected to be about 5.5 billion yuan ~ 6 billion yuan, with a year-on-year increase of 47.5% ~ 60.91%, and the median value is 5.75 billion yuan, with a year-on-year increase of 54.19%.
Key points of the report:
The performance has increased rapidly, the credit impairment loss has been significantly reduced, and the business quality has been significantly improved
According to the performance forecast, the company realized a net profit attributable to the parent company of about 900-1.4 billion yuan in a single quarter in the fourth quarter, compared with about 1.295 billion yuan in the same period last year. The macro economy has weakened since the third quarter, and the demand for real estate and infrastructure in the downstream has slowed down. In the fourth quarter alone, the sales volume of cranes of China's major enterprises fell by 51% year-on-year, and the sales volume of cranes of China's major enterprises fell by 9% in the whole year. Under the pressure of macro environment, the operating revenue of the company continued to grow steadily and the profitability increased significantly. Since 2021, the company has fully implemented the new concept of "three high and one can" high-quality development with high quality, high efficiency, high efficiency and sustainability, practically enhanced the awareness of quality control, improved the ability of technological innovation, improved the level of internal management, actively distributed overseas markets, comprehensively promoted the transformation and upgrading of enterprises, and continuously improved the competitiveness and brand influence of XCMG products.
Core assets such as excavators and tower cranes are injected into the road
On April 19, 2021, the board of directors of the company reviewed and approved the proposal to implement absorption and merger of XCMG Co., Ltd. by issuing shares to all shareholders of the controlling shareholder XCMG Co., Ltd. and is currently undergoing major asset restructuring. XCMG's four major construction machinery assets include excavator, tower crane, concrete machinery and mining machinery. After absorption and merger, it is expected to realize the overall listing of XCMG's construction machinery assets. According to the public information disclosure of XCMG, in 2020, the revenue of XCMG excavator was 23.1 billion yuan, the revenue of XCMG construction machinery (tower crane) was 6.2 billion yuan, the revenue of XCMG Shi Weiying (concrete machinery) was 6.1 billion yuan, and the revenue of XCMG mining machinery was 2.8 billion yuan, with a total revenue of 38.2 billion yuan, of which the gross profit margin of XCMG excavator was as high as 31.5%, much higher than 17.1% of listed companies, It is expected that after the injection of high-quality assets, the volume of listed companies will be greatly increased and the profit level will be raised.
Investment advice and profit forecast
It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 5.7 billion yuan, 6.5 billion yuan and 7.4 billion yuan respectively, corresponding to the current PE of 8 / 7 / 6x respectively, maintaining the "buy" rating of the company.
Risk tips
Intensified market competition; The progress of mixed transformation is less than expected; Raw material prices continued to rise.
