Zoomlion (000157) Annual Report Comments: Improved Profitability, Excellent Asset Quality

May 18, 2020 洗浴

Zoomlion (000157) Annual Report Comments: Improved Profitability, Excellent Asset Quality

Zoomlion (000157) Annual Report Comments: Improved Profitability, Excellent Asset Quality

2018 annual report exceeded expectations: improved profitability, abundant cash flow and optimized asset quality. In 2018, Zoomlion achieved operating income of 286.

97 ppm, an increase of 23 in ten years.

30%; Net profit attributable to parent company.

20 ppm, an increase of 51 in ten years.

65%, operating cash flow 50.

64 ppm, an increase of 77 in ten years.

62%.

The company’s profitability has continued to improve, with abundant cash flow and further optimized asset quality.
In 2021, the EPS will be 0.

36/0.

45/0.

54 yuan (2019?
(Increase 9% and 15% respectively in 2020), PE is 12.

3/9.

9/8.

3 times.

The average PE for comparable companies in 2019 is 12.

6 times.

With the gradual pick-up in infrastructure growth in 2019, we believe the industry as a whole has room for repair.

Maintain a target of 4

95?

5.

22 yuan, corresponding to PE in 2019 is 13.

8?

14.

5x, maintain “Buy” rating.

Significant benefits from the adjustment strategy, the company’s main product market continued to be a healthy improvement, the company’s crane business in 2018 achieved revenue 124.

70,000 yuan, an increase of 83 in ten years.

3%, the proportion of income increased to 43.

5%; concrete machinery operating income 101.

650,000 yuan, an increase of 38 in ten years.

6%, revenue 南京夜网 accounted for 35.

4%, the proportion of agricultural machinery business operating income fell to 5.

1%.

The domestic market share of hoisting machinery and concrete machinery continues to be “top-ranked”, among which construction hoisting machinery and concrete long boom pump trucks remain the first in the industry.

The company plans to increase the development of aerial work platforms, enter the excavator industry, strengthen development potential, and emerging markets.

Profitability significantly improved the company’s consolidated gross profit margin in 201827.

1%, up from 2017.
5,

74 units.

Among them, the crane business gross margin reached 29.

06%, increased by 7 units; gross profit margin of concrete machinery business was 23.
96%, an increase of 5.

64 units.

The overall management expense ratio and operating expense ratio showed a downward trend.

Net sales margin has continued to rise since bottoming out in 2016, reaching 7% in 2018, an increase of 1.
.

32 units.

Abundant cash flow and excellent asset quality. In 2018, the company received $ 29 billion in cash from sales of goods and services, and a net operating cash flow of 50.

600 million, a record high.

There was no loss in accounts receivable, bad debts were fully accrued, and the company’s assets impairment loss in 2018 was 0.

8.6 billion yuan.

The company’s off-balance sheet contingencies accounted for 30% of operating income.

5%.

From the perspective of the company’s risk exposure to operating income, the total risk exposure ratio in 2018 was 93.

54%, ranking continued to decline in 2017.

It can be judged that due to the risks brought by past sales, it must have been cleared.

Maintaining the “Buy” rating Since the first quarter of this year, the overall performance of the construction machinery industry is better than market expectations. In particular, the profitability of cranes has improved more than we expected. Therefore, we adjusted our profit forecast for the company.
In 2021, the EPS will be 0.

36/0.

45/0.

54 yuan (2019?
(Increase 9% and 15% respectively in 2020), PE is 12.

3/9.

9/8.

3 times.

The average PE for comparable companies in 2019 is 12.

6 times.

With the gradual pick-up in infrastructure growth in 2019, the factors that suppress the estimation of the construction machinery industry will improve, and we believe that the industry as a whole has room for repair.

Maintain a target of 4

95?5.

22 yuan, corresponding to PE in 2019 is 13.

8?14.

5x, maintain “Buy” rating.

Risk warning: The domestic economy is down faster than expected; the growth rate of infrastructure investment has not increased as expected, and real estate investment has continued to narrow; the industry’s competitive environment has deteriorated; the market for new products has not been smooth;The impact of profits.