Zoomlion (000157): Profitability continues to increase and cash flow hits record high

Zoomlion (000157): Profitability continues to increase and cash flow hits record high

Event: The company released its 2018 annual report on March 30, 2019, and realized operating income of 286 in 2018.

97 ppm, an increase of 23 in ten years.

30%; net profit attributable to mother 20.

20 ppm, an increase of 51 in ten years.

65%, operating cash flow 50.

64 ppm, an increase of 77 in ten years.

62%, a record high, with a basic income of 0.

26 yuan.

Opinion: The performance of the company’s annual report is in line with expectations. After concentrating on solving historical baggage, the company entered the youth market in 2018 and is committed to high-speed product growth. The gross profit margin has increased quarter by quarter. The profitability has continued to increase. The operating cash flow has reached a record high.Prosperity spreads to the construction machinery categories such as concrete equipment and lifting equipment, and the company’s advantageous business will be brought into full play.

After 2019, the cyclic product will maintain rapid growth, and the company’s performance growth is highly certain.

① The contribution of post-cycle product revenues such as concrete equipment and cranes accounts for 79%.

The company achieved operating income of 286 in 2018.

9.7 billion, previously +23.

3%, in terms of products, lifting machinery revenue 124.

700 million, +83 a year.

28%, accounting for 43.

46%, concrete machinery revenue 101.

65 yuan, +38 a year.

59%, accounting for 35.

At 42%, cranes surpassed concrete machinery to become the largest source of revenue, and the two together accounted for 79%.

② Post-cycle 无锡桑拿网 products will continue to grow rapidly in 2019, and the company’s performance growth is highly certain.

The industry’s high prosperity is spreading to the post-cycle concrete equipment, lifting equipment and other engineering machinery categories. The company’s concrete equipment and lifting machinery have entered the TOP3 industry. Among them, construction lifting machinery and concrete long boom pump trucks have maintained the industry’s first position, with advantageous businessesIt will be fully utilized, and the growth performance in 2019 is highly certain.

Profitability continued to increase, and operating cash flow hit a record high.

① Profitability has been continuously enhanced.

The company’s Q1 / Q2 / Q3 / Q4 gross profit margins were 25 in 2018.

33%, 25.

79%, 28.

18%, 29.

07%. In 2018, the company 杭州桑拿 concentrated on the release of the second mobile phone, and the gross profit margin increased significantly quarter by quarter. The combined gross profit margin of the company reached 27.

09%, ten years +5.

74pct, net interest rate is 6.

82%, ten years +1.

46pct, the profitability has been significantly enhanced. We believe that the conversion to the second mobile phone is nearing completion, and the proportion of new machines with high gross profit margins has increased. It is expected that there will be room for future gross profit margins to increase.

② Operating cash flow hit a record high.

The company has a strong sense of risk control, strictly controls the payment terms, and the cash flow has significantly improved. The average down payment ratio has reached 40%, and the overdue rate of new machine sales is less than 1%.

Operating cash flow reached 50 in 2018.

6.4 billion, a record high, and step into a healthy and sustainable development path.

Excavators and aerial work platforms are expected to become new growth points in the future.① The positioning of the excavator in the high-end market will become a new growth point for performance.

The company’s excavator products are developed by the national and North American R & D centers to locate the high-end market. The company’s market sales network and channel distributors have been laid out in advance. The G series of new-generation earthmoving machinery products developed have been launched. We expect to contribute new performance increases in the future.

② The aerial work platform industry is in the introduction period and there is a lot of room for growth in the future. The company accelerates the deployment of aerial work platform products.

The company started product development in April 2017. At present, it has completed the development of a full range of scissor forks with a design capacity of 1.

20,000 units / year, the production line has entered the operational stage; the technical planning of the arm has been completed, and it will be completed and put into production in May 2019.

Combined with the company’s leasing services, the company’s aerial work platform business will enter the market power stage in 2019 and will contribute new performance increases in the future.

Investment suggestion: It is expected that the company’s net profit attributable to its parent from 2019 to 2021 will be 29 respectively.

70, 39.

68 and 48.

26 trillion, an increase of 47 in ten years.

04%, 33.

60% and 21.

63%; corresponding to EPS 0.

38, 0.

51 and 0.

62 yuan, corresponding to PE12, 9, 8 times.

Maintaining a strong recommendation rating risk reminder: Infrastructure investment has fallen short of expectations, and downstream fixed asset investment has increased significantly.