Sany Heavy Industry Co., Ltd. (600031): Annual report predicts performance growth and growth The company’s core competitiveness continues to improve

Event: The company released the 2019 annual report notice, and gradually returned to its parent’s net profit of 10.8 billion to 11.8 billion, an increase of 76.

5天津夜网 8% to 92.

93%; realized non-net profit of 10 billion to 11.2 billion, with an increase of 65 in the future.

63% to 85.

51%.

The annual report predicts a substantial increase in performance, which is generally in line with market expectations: in 2019, the company will realize net profit attributable to mothers of 10.8 billion to 11.8 billion, an increase of 76.

58% to 92.

93%; realized non-net profit of 10 billion to 11.2 billion, with an increase of 65 in the future.

63% to 85.

51%, performance growth increased, generally in line with market expectations.

It is mainly benefited from the demand for domestic base construction, the country’s strengthening of environmental governance, the growth of equipment renewal requirements, and artificial substitution effects to promote the continuous growth of the construction machinery industry. The company’s core products are excavation machinery, concrete machinery, lifting machinery, pile machinery, etc.The sales scale and profit level increased significantly.

The company’s core competitiveness has continued to improve, and its operating quality is at the best level in history. In 2019, the company expanded its development and innovation of products and intelligent manufacturing. The domestic and international market shares of major products such as excavation machinery, concrete machinery, lifting machinery, and road machinery continued to grow.Promotion and has gained global competitiveness.

By advancing digital transformation, the company has significantly improved operating efficiency, per capita output value, effectively reduced costs, and continued to improve profitability.

At the sales end, the company attaches great importance to risk control, strictly controls customer quality and down payment period. At present, the operation and asset quality are at the best level in history.

Optimistic about the demand for construction machinery during the peak season, the company is expected to benefit significantly from the recent quarterly meeting of the first quarter of the departmental meeting, which requires the issuance and use of special bonds of local governments to promote the construction of projects under construction and conditional projects as soon as possible, leading to the expansion of effective investment.

At least last year, a large proportion was invested in land storage and shed reform projects. This year’s newly issued special bonds will be mainly invested in the infrastructure sector, and allow special debt project capital to gradually advance infrastructure investment.

We are optimistic about 杭州桑拿网the peak demand for construction machinery after the spring, and the company as an industry leader tries to benefit significantly.

Profit forecast and investment recommendations: We expect the company’s net profit for 2019-2021 to be 114.

7.1 billion, 141.

00 billion and 153.

8.9 billion, corresponding to 13 times, 10 times and 9 times the corresponding PE, maintaining the “buy” level.

Risk warning: domestic infrastructure investment is less than expected, export growth is less than expected, etc.