With the help of policy, Liugong is expected to achieve a new round of growth

In order to alleviate the dilemma of the development of enterprises caused by the international economic downturn and the domestic mechanized market confusion, the central government has issued some preferential policies, which has created a good environment for the development of enterprises.

Liugong summed up the recent development of the company, thus reacting to the current impact of the release of domestic policies on the company.

Good prospects for the development of domestic reform policies

As a key industry of Guangxi SASAC, the company is expected to achieve rapid upgrading in the future along with the continuous progress of SOE reform and management incentives.

The company's operating income declined in the past 15 years than last year, but continued to maintain a steady financial situation, a few continuous profit companies in the engineering machinery industry.

With the future of the company quickly make up for the short board, the front end of the value chain to accelerate the development of the core components and the ability to market, along the value chain back to accelerate development, build financial leasing, service parts and remanufacturing market competitiveness and coordination efficiency, forming ability for the full life cycle of a comprehensive solution; to strengthen the focus on emerging market Chinese. The market, to implement a regional strategy for the strategic focus, enhance the steady growth of the company is expected to achieve the performance and comprehensive ability.

Before and after, the past year's development is not ideal.

Due to mining, infrastructure and real estate industry underemployment, and past the construction machinery industry sales strong, the accumulation of the huge quantity of earthwork machinery equipment, income of the company was 4 billion 125 million, down 39.14%; other engineering machinery and accessories to achieve revenue 2 billion 157 million yuan, down 30.06%; the company achieved revenue 374 million yuan financing lease business, down 13.30%.

During the reporting period, the company's consolidated gross margin of 25.53%, an increase of 3.59 percentage points; the earthwork machinery product gross margin 22.17%, down 0.27 percentage points, other engineering machinery and parts gross margin of 24.24%, an increase of 10.45 percentage points; financing lease business gross margin of 70.01%, down 2.31 percentage points.

The company ahead of the deployment of overseas marketing and manufacturing, is expected to continue to benefit from the "The Belt and Road construction.

The company is located in Guangxi Liuzhou, the geographical position near the Southeast Asian developing countries The Belt and Road ", through a comprehensive transformation of internationalization and product large high-grade transformation and technological innovation, strategic initiatives, overseas market expansion and perfection of large machine promotion, marketing channels, the company is expected to become one of the biggest beneficiaries from The Belt and Road" policy construction equipment exports increased.

The company has officially launched the Liugong global R & D center with world-class R & D hardware and first-class experimental platform in 15 years, which will further enhance the core competitiveness of the company and maintain the steady improvement of its core products and parts capabilities.

Profit forecast:

It is expected that the company's net profit of 16-17 years is 77 million, 84 million, and the corresponding EPS is 0.07, 0.07, and the corresponding PE is 100 times and 91 times, giving the recommended rating.

Although the current policies promote the development of enterprises and create a good atmosphere, the market seems to be not yet synchronized with policies, so it can't be optimistic at the same time, so we should not relax at the same time.

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