Liugong (000528) Quarterly Report Review 2019: Steady Growth in Q1 Performance and Further Improved Industry

Liugong (000528) Quarterly Report Review 2019: Steady Growth in Q1 Performance and Further Improved Industry

Matters: The company released the 2019 first quarter report, which achieved revenue of 48 in the first quarter.

65 ppm, an increase of 8 per year.

78%; net profit attributable to mothers3.

40,000 yuan, an increase of 5 in ten years.

08%; net cash inflow from operating activities 5.

10,000 yuan, an increase of 534 in ten years.

26%.

Comment: The construction machinery market continued its boom in the first quarter, and the company’s performance improved steadily.

The excavator market continued to grow in the first quarter, and the company achieved revenue of 48 in the first quarter.

65 ppm, an increase of 8 per year.

78%; net profit attributable to mothers3.

4.0 billion, an annual increase of 5.

08%, with steady growth in performance.

According to the statistics of the China Construction Machinery Industry Association, a total of 74,779 excavating machinery products were sold in the first quarter of 2019, a jump of 24.

51%; 29,327 loaders were sold in the first quarter, an increase of 7 per year.

43%.

Among them, Liugong excavators sold 5,223 units in the first quarter, an increase of 26 per year.

93%, higher than the industry growth rate; Liugong excavator’s market share reached 6 in the first quarter.

98%, an increase of 0 over the same period last year.

13 levels, the industry is solid.

Gross margin increased slightly and profitability continued to improve.

The company’s comprehensive gross profit level in the first quarter of 2019 was 23.

18%, an increase of 0 over the same period last year.

41 units; the company’s period expenses in the first quarter14.

48%, an increase of 1 over the same period last year.

15 units.

Among them, the sales expense ratio and financial expense ratio are 8 respectively.

97% and 0.

92%, an increase of 1 over the same period last year.

33 and 0.

27 units; management expenses 4.

59%, down by 0 compared with the same period last year.

46 units.

Due to the issuance of ABS by the leasing business and the reduction of the use of its own funds, the company had a net cash inflow from operating activities in the first quarter.

10,000 yuan, an increase of 534 in ten years.

26%.

With further expansion of overseas markets, the Belt and Road Initiative is expected to help the company achieve better results.

During the Belt and Road Summit, there was a strong demand for infrastructure from countries along the Belt and Road.In 2018, the company resolutely promoted internationalization, adhered to the “One Belt, One Road” development policy, and basically achieved full coverage of the countries along the “Belt and Road”, and reached 85% in 65 core countries.

The company continued to adopt a marketing strategy focusing on core overseas countries and key customers, 南宁桑拿 bringing new sales growth points. In 2018, the company’s total overseas sales revenue increased by 30% each year.

Among them, the overseas sales of excavators increased by 37% each year, and sales revenue increased by 41% each year.

With the vigorous advancement of the Belt and Road Initiative, the company’s overseas business is expected to bring new growth points in 2019.

Earnings forecast: Maintain the company’s 2019-2021 EPS to be 0 respectively.

77/0.

92/1.

00 yuan, corresponding PE is 10/8/8 times, considering that the average estimated level of comparable companies is 12.

85, giving Liugong 13 times the expected level in 2019 and maintaining a target price of 10.

01 yuan, maintain “recommended” investment rating.

Risk warning: Macroeconomic downturn, overseas expansion is less than expected