Xugong: increase investment in infrastructure, engineering machinery is the product market

In 2016, Xugong machinery has stepped on a good policy, gradually turning the center back to the development of engineering machinery, and the market of engineering machinery is expected to be warm.

Although the performance has fallen, the profit is stable

The company achieved operating income of 16 billion 658 million yuan, the company lifting products to achieve revenue 5 billion 757 million yuan, down 21.47% over last year; carry-scraper products revenue 2 billion 168 million yuan, down 29.98% over last year; piling machinery products to achieve revenue 223 million yuan, 6.33% higher than the same period last year; engineering machinery spare parts and other products to achieve revenue 2 billion 567 million over the same period last year fell 31.32% yuan.

The gross interest rate is basically stable. The company lifting machinery product gross margin of 20.17%, compared to the same period last year decreased by 5.01 percentage points; carry-scraper product gross margin of 18.74% compared to the same period last year, down 2.54 percentage points; piling machinery product gross margin of 33.09% compared to the same period last year, down 5.93 percentage points; engineering machinery spare parts and other products, the gross margin of 11.56% compared to the same period last year increased by 3.25 percentage points.

Three costs have fallen. Among them, the cost of sales rate was 7.32%, compared to the same period last year increased by 0.28 percentage points; management fee rate was 8.83%, compared to the same period last year increased by 0.79 percentage points; the financial cost rate of 6.35%, compared to the same period last year increased by 3.73 percentage points, mainly due to a subsidiary of Brazil exchange losses rose due to the larger.

Infrastructure investment growth driven by engineering machinery boom rebound is expected to continue to benefit from the company's products The Belt and Road"

According to the 2016 "government work report", this year China to launch a number of "13th Five-Year" planning of major projects, the completion of the railway investment of 800 billion yuan, 1 trillion and 650 billion yuan investment in highways, while the construction of 20 major water conservancy projects, major construction projects of nuclear power, hydropower UHV, smart grid, oil and gas pipelines, city track traffic. These investment growth will undoubtedly stimulate the demand for local engineering machinery products, and drive the boom of engineering machinery industry to recover. As the head of the domestic engineering machinery industry, the market demand of its engineering machinery products will be increased correspondingly, and the performance is expected to rise steadily.

With the landing and The Belt and Road "national strategy to promote, and" economic and social development of the thirteenth five year plan "clearly will focus on 12 industries including engineering machinery industry, through international cooperation to promote the production capacity and equipment manufacturing, equipment, technology, service standards, going out development plan landing. The company's engineering machinery product business is expected to continue to benefit.

The three new business will be new growth points.

At the beginning of the year, the core backbone of the company participated in the 277 million 470 thousand yuan management plan to subscribe to the total size of the company, showing the determination of the company's transformation. The reform of internal force adjustment in large structure, a number of high-quality assets into the listed company, and Xugong Shi Weiying stripped from listed companies; promote the business assets reorganization of Brazil Xugong company, realize the separation of the development of environmental industry, industry and industry of aerial platform fire.

The company actively layout of the new business transformation: information industry, business platform Xugong information technology services company net profit last year doubled; financial services, Xugong investment company net profit last year to achieve doubling; the military, founded the military department, began to implement the integration of military and civilian specific work plan and the people's Liberation Army, the military engineering machinery sales doubled.

Profit forecast:

The company is expected to achieve 2016-2018 years net profit of 6.94, 9.79, 1 billion 329 million yuan, EPS 0.10, 0.14, 0.19 yuan, corresponding to PE36X, 25X, 19X, to give "prudent recommendation" rating.

5. risk hints:

The risk of economic fluctuation, market competition risk, overseas investment risk and exchange rate volatility risk.

Wonderful recommendation:

Road too mechanical road training time

Xie Bangrong: new development of engineering machinery

The profit of the industry and enterprise is rising, the nightmare is stopped