Xugong Machinery (000425): Strong demand, rapid growth in cash flow, improved operating quality

Investment Highlights The company announced the third quarter of 2019: operating income for the first three quarters was 432.

3.9 billion, an annual increase of 26.

89%; net profit attributable to mother 30.

20 ppm, an increase of 100 in ten years.

28%; net profit after deduction is 27.

23 ppm, an increase of 99 in ten years.

24%; expected ROE is 10.

63%, an increase of 4 per year.

25 units; net operating cash flow 31.

20,000 yuan, an increase of 61 in ten years.

48%.

The company’s operating income in the third quarter was 120.

830,000 yuan, an increase of 19 in ten years.

25%; net profit attributable to mother 7.

3.7 billion, an annual increase of 82.

41%; net profit after deduction to mother 12.

32 ppm, an increase of 137 in ten years.

57 trillion; expected ROE is 2.

29%, increasing by 0 every year.

75 units.

In the first three quarters of 2019, the company’s operating income and net profit attributable to mothers continued to maintain rapid growth. First, the construction machinery industry still maintained a high degree of prosperity.

Take truck cranes as an example. From January to August 2019, the sales volume of truck cranes in the industry was 30,564 units, an annual increase of 37.

19%, as the leading enterprise of domestic truck cranes, the company’s high downstream economy has promoted the company’s revenue and net profit attributable to mothers to maintain rapid growth.

By quarter, the company achieved revenues of 144 in Q1-Q3 2019.

2 billion, 167.

3.7 billion and 120.

830,000 yuan, an increase of 33 in ten years.

72%, 27.

18% and 19.

25%, slightly profitable quarterly growth rate; realized net profit attributable to mothers10.

5.3 billion, 12.

3 billion and 7.

370,000 yuan, an increase of 102 in ten years.

73%, 110.

44% and 82.

41%, still continuing high growth.

In the first three quarters of 2019, the company’s comprehensive gross profit margin was 18.

57%, increasing by 0 every year.65 averages, net profit margin 7.

02%, an increase of 2 every year.

58 averages, with an expected ROE of 10.

63%, an increase of 4 per year.

25 units.

The company operates more efficiently.

During the first three quarters of 2019, the company’s period expenses were 41.

79 ppm, a ten-year increase of 7.

30%, accounting for 9% of operating income.

66%, a decrease of 1 per year.

The total of 76 expenses during the period was much lower than the growth rate of operating income.

Company under construction13.

55 ppm, an increase of 70 in ten years.

31%, the first is the company’s development of fire truck intelligent manufacturing industrialization base project, aerial manufacturing platform intelligent manufacturing project, engineering machinery core hydraulic components technology upgrade and intelligent transformation project investment.

Company receivables 246.

20 ppm, an increase of 36 in ten years.

62%; inventory 90.

59 billion US dollars, a decade ago.

13%.

The company’s operating capacity has improved, and the company’s accounts receivable turnover rate in the first three quarters of 20192.

03 times, down by 0 every year.

07 times, the inventory turnover rate is 3.

66 times, increasing by 0 every year.

78 times.

Net operating cash flow of the company 31.

20,000 yuan, an increase of 61 in ten years.

48%, basically a significant increase in profit, the company strengthened its efforts to collect money, sold goods, and provided a large increase in cash received for labor services; investment activities generated a net cash flow of -8.

80 ppm, an increase of 13 per year.

Ten percent of 09 is basically an increase in investment income and a decrease in investment expenditure; the net cash flow from financing activities is -12.

08 yuan, a decrease of 26 per year.

3.8 billion is basically debt due and dividends paid.

We maintain our profit forecast and expect the company’s net profit for 2019-2021 to be 36.

85/57.

06/66.

47 million, corresponding to 0 EPS in 2019-2021.

47/0.

73/0.

85 yuan / share, the corresponding PE is 9.

6/6.

2/5.3x (2019/10/31) and maintain the rating of “Prudent Overweight”.

Risk warning: the company announced the third quarter of 2019: the first three quarters of operating income 432.

3.9 billion, an annual increase of 26.

89%; net profit attributable to mother 30.

20 ppm, an increase of 100 in ten years.

28%; net profit after deduction is 27.

23 ppm, an increase of 99 in ten years.

24%; expected ROE is 10.

63%, an increase of 4 per year.

25 units; net operating cash flow 31.

20,000 yuan, an increase of 61 in ten years.

48%.

The company’s operating income in the third quarter was 120.

830,000 yuan, an increase of 19 in ten years.

25%; net profit attributable to mother 7.

3.7 billion, an annual increase of 82.

41%; net profit after deduction to mother 12.

32 ppm, an increase of 137 in ten years.

57 trillion; expected ROE is 2.

29%, increasing by 0 every year.

75 units.

In the first three quarters of 2019, the company’s operating income and net profit attributable to mothers continued to maintain rapid growth. First, the construction machinery industry still maintained a high degree of prosperity.

Take truck cranes as an example. From January to August 2019, the sales volume of truck cranes in the industry was 30,564 units, an annual increase of 37.

19%, as the leading enterprise of domestic truck cranes, the company’s high downstream economy has promoted the company’s revenue and net profit attributable to mothers to maintain rapid growth.

By quarter, the company achieved revenues of 144 in Q1-Q3 2019.

2 billion, 167.

3.7 billion and 120.

830,000 yuan, an increase of 33 in ten years.

72%, 27.

18% and 19.

25%, slightly profitable quarterly growth rate; realized net profit attributable to mothers10.

5.3 billion, 12.

3 billion and 7.

370,000 yuan, an increase of 102 in ten years.

73%, 110.

44% and 82.

41%, still continuing high growth.

In the first three quarters of 2019, the company’s comprehensive gross profit margin was 18.

57%, increasing by 0 every year.

65 averages, net profit margin 7.02%, an increase of 2 every year.

58 averages, with an expected ROE of 10.

63%, an increase of 4 per year.

25 units.

The company operates more efficiently.

During the first three quarters of 2019, the company’s period expenses were 41.

79 ppm, a ten-year increase of 7.

30%, accounting for 9% of operating income.

66%, a decrease of 1 per year.

The total of 76 expenses during the period was much lower than the growth rate of operating income.

Company under construction13.

55 ppm, an increase of 70 in ten years.

31%, the first is the company’s development of fire truck intelligent manufacturing industrialization base project, aerial manufacturing platform intelligent manufacturing project, engineering machinery core hydraulic components technology upgrade and intelligent transformation project investment.

Company receivables 246.

20 ppm, an increase of 36 in ten years.

62%; inventory 90.

59 billion US dollars, a decade ago.

13%.

The company’s operating capacity has improved, and the company’s accounts receivable turnover rate in the first three quarters of 20192.

03 times, down by 0 every year.

07 times, the inventory turnover rate is 3.

66 times, increasing by 0 every year.

78 times.

Net operating cash flow of the company 31.

20,000 yuan, an increase of 61 in ten years.

48%, basically a significant increase in profit, the company strengthened its efforts to collect 深圳桑拿网 money, sold goods, and provided a large increase in cash received for labor services; investment activities generated a net cash flow of -8.

80 ppm, an increase of 13 per year.

Ten percent of 09 is basically an increase in investment income and a decrease in investment expenditure; the net cash flow from financing activities is -12.

08 yuan, a decrease of 26 per year.

3.8 billion is basically debt due and dividends paid.

We maintain our profit forecast and expect the company’s net profit for 2019-2021 to be 36.

85/57.

06/66.

47 million, corresponding to 0 EPS in 2019-2021.

47/0.

73/0.

85 yuan / share, the corresponding PE is 9.

6/6.

2/5.

3x (2019/10/31) and maintain the rating of “Prudent Overweight”. Risk warning: The sales volume of construction machinery is lower than expected, the export 北京夜网 business is lower than expected, and the improvement of the group is lower than expected.