Xugong Machinery (000425): High Performance of Beneficial Industries


Xugong Machinery (000425): High Performance of Beneficial Industries

Performance summary: The company achieved operating income of 311 in the first half of 2019.

700 million, an annual increase of 30.

1%; net profit attributable to mother 22.

800 million, an increase of 106 every year.

8%; gross margin 18.

3%, net interest rate 7.


  Benefited from the industry’s high economic performance and outstanding performance.

In the first half of 2019, the boom of the construction machinery industry was high, and the sales volume of 苏州桑拿网 excavators increased by 14.

2%, truck crane sales growth rate of 53.


The company’s core business grew well. The revenues of lifting machinery, construction machinery spare parts, shovel machinery, and pile machinery were 114.

800 million, 64.

200 million, 30.

0 billion, 34.

0 trillion, +33 each year.

9%, +45.

8%, +11.

8%, +44.

7%, total contribution income is about 80%.

The company’s comprehensive operating income is 311.

700 million (+30.

1%), net profit attributable to mother 22.

8 billion (106.

8%), of which Q2 achieved revenue of 167 in a single quarter.

4 billion (+27.

2%), net profit attributable to mother 12.

3 billion (+110.


  Improved operating efficiency and improved profitability.

Benefiting from the improvement of operating quality, the company’s profitability has improved significantly.

The company’s automotive crane industry gross margin increased to 24.

9%, ten years +3.

1pp, comprehensive gross margin increased to 18.

3%, ten years +1.

0pp, net interest rate 7.

4%, one year +2.

7pp.The company’s expenses are well controlled, and the three rates have dropped by 2.

9pp, of which the sales expense rate is -0 per second.

7pp, management expense ratio (including research and development) for ten years -1.

6pp, financial expense ratio ten years -0.


As the company’s product strength continues to improve, the leader continues to strengthen, and scale and profit are expected to continue to increase.

  The truck crane faucet was approved for mixed reform, which helped the company’s long-term development.

The company is a professional company integrating the development, manufacturing and sales of road construction machinery, shovel machinery, road machinery and other construction machinery. It was established in December 1993 and went public in August 1996.

From 2009 to 2018, the company’s operating income was from 207.

0 billion to 444.

100 million, compound growth rate of 8.

9%, net profit attributable to mother from 17.

400 million to 20.

500 million, compound growth rate 1.


In July 2019, the company’s mixed reform plan was approved and is currently being promoted in an orderly manner. It will help to give more play to the role of market players in the future and is beneficial to the company’s long-term development.

  Earnings forecasts and investment advice.

It is expected that net profit attributable to mothers will be 39-20 in 2019-2021.



300 million, the corresponding EPS is 0.



64 yuan, corresponding estimates are 9 times, 7 times, 7 times.

The company’s product strength is strong, the market share is leading, the first coverage, given an “overweight” rating.

  Risk Warning: The downstream infrastructure growth rate is lower than expected risk, product sales may not meet expectations, overseas business operation risk, exchange rate risk