Xugong Machinery (000425) Third Quarterly Report Review: Third Quarter Continues High-Growth Profit Quality Improvement

Xugong Machinery (000425) Third Quarterly Report Review: Third Quarter Continues High-Growth Profit Quality Improvement

Event: The company released the third quarter report of 2019, and achieved operating income of 432 in the first three quarters.

390,000 yuan, an increase of 26 in ten years.

89%, achieving net profit attributable to shareholders of listed companies.

20 ppm, an increase of 100 in ten years.


Among them, the operating income of the third quarter was 120.

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

25%, achieving net profit attributable to shareholders of listed companies.

370,000 yuan, an increase of 82 in ten years.


Key points of the report: Benefiting from infrastructure needs, renewal requirements, the construction machinery industry continues to have a high degree of prosperity, and demand for major products such as excavators and cranes is strong.

A total of 25 mainframe manufacturing companies counted on January 9, 2019 sold a total of 179,195 excavating machinery products, an increase of 14 or more.

7%; of which the domestic market sales of 159810 units, an increase of 12 year-on-year.

2%, the export sales of 19385 units, an increase of 39.


In September, the sales volume of cranes in major enterprises nationwide was 33,243 units, an increase of 34 each year.


We believe that the recovery of this round of construction machinery is significantly different from the complex cyclical changes under the previous strong stimulus.

Net cash flow from operating activities increased, and the quality of earnings improved.

In the third quarter of 2019, the company’s comprehensive gross profit margin was 19.

17%, a decrease of 0 from the previous month.

52pct, increasing by 0 every year.

13 points; the company’s net profit margin in the third quarter was 6.

1%, a decrease of 1 from the previous month.

25pct, increase by 2 every year.

11 points.

In the first three quarters of 2019, the company’s net cash flow from operating activities31.

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

48%, mainly due to the above-mentioned significant growth and the company’s efforts to increase payment.

Affected by the increase in the reported preliminary income and exchange gains, the company’s financial expenses decreased by 251 each year.

96%, financial situation has improved significantly.

The sales of the company’s various product segments continued to maintain a steady growth momentum, with rapid growth in operating income and a substantial increase in profitability.

The company actively breaks through the gold standard of “leading technology, not destroying”, continuously improves its technological innovation ability, strengthens the internal management level of the enterprise, and further improves market competitiveness by using products, channels and scale advantages.

The company seizes the development potential and accelerates the global industrial layout. The overseas market development process has accelerated significantly, especially in the countries along the “Belt and Road”, the marketing and service systems have been further improved, and the export and brand 深圳丝袜会所 influence have been greatly enhanced.

Lifting crane faucet, mixed with new power.

The company’s domestic market share of hoisting machinery ranks first; XCMG Group is a leading domestic construction machinery company. In addition to cranes, sales of various products such as excavators and concrete machinery rank top in the domestic market.

The company’s controlling shareholder XCMG Limited’s pilot implementation plan for mixed reform has been approved by the SASAC. If the mixed reform is successfully implemented, it is expected to bring new development momentum to the company.
Investment advice and profit forecast We estimate that XCMG’s operating income from 2019 to 2021 will be 634.
6.2 billion, 775.

61 ppm, 889.

7 billion, an increase of 42 each year.

90%, 22.

22%, 14.

71%; net profit attributable to mothers is 42.

4.3 billion, 52.

1.5 billion, 57.

9.1 billion, net profit attributable to mothers increased by 107.

41%, 22.

92%, 11.


Give “Buy” rating.

Risk prompts 1) Subdivision of infrastructure fixed assets investment stall; 2) Intensified market competition; 3) Asset impairment risk.