Zoomlion (000157): The post-cycle varieties continued to increase their 19-year net profit to 42.

8 billion

Zoomlion (000157): The post-cycle varieties continued to increase their 19-year net profit to 42.

8 billion

Q3 The prosperity 杭州桑拿 of construction machinery continues, and after 20 years of judgment, the cycle change is high, and the growth of tower cranes and concrete machinery will continue to grow rapidly. The scale effect is significant, financing costs are optimized, and the company’s profitability is greatly improved.

Investment Highlights: Conclusion: 19Q1?

For Q3 revenue, the profit attributable to the parent was 31.8 billion and 34 respectively.

8 billion, an increase of 51%, 167%, deducting 27.

700 million, an increase of 189%; of which Q3 revenue was attributed to the mother’s profit of 94.

900 million, 9.

0 billion, an increase of 50.

3%, 106%, deduction of 6.

500 million, an increase of 111%, in line with expectations.

Based on the higher-than-expected growth in the post-cycle variety of construction machinery, the increase in 2019?
21 years EPS to 0.

54 (+0.

03) / 0.

66 (+0.

09) / 0.

69 (+0.

09) yuan and maintain target price of 6.

86 yuan, increased holdings.

The boom of construction machinery continued, and the variety of the post-cycle was highly certain.

① Tower crane: The growth rate of newly started real estate is high, especially for the demand for prefabricated buildings. From January to September, the company’s tower crane sales more than doubled and increased, the proportion of large tonnage increased, and the revenue growth rate was higher.

② Engineering cranes: The automotive crane industry grew by more than 30% from January to September, and the expansion of Zoomlion has been greatly increased. The sales volume is expected to increase by more than 50%. The crawler crane is expected to Q1?
Q3 doubled.

③Concrete machinery: Q1?
Q3 overall revenue growth is expected to exceed 30%, of which Q3 pump truck industry is expected to grow 30?
40% (19H1 is 70?
80%), the company expects to exceed 40% (19H1 exceeds 80%).

According to demand (volume and structure), renewal, environmental protection and other factors, it is judged that tower cranes continue to grow at a high rate, concrete machinery is growing faster, and construction cranes have a high degree of certainty.

Significant economies of scale, optimized financing costs, and significantly improved profitability.

19Q1?Gross profit margin for Q3 was 29.

8%, an increase of 3 per year.

5 points, total sales, management rates.

3%, a decrease of 1.

9pct, a significant scale effect; Q3 interest-bearing debt (including notes) at the end of Q3 was 43.9 billion, a month-on-month increase, but the financing cost was reduced after the bond issue in July, and Q3 expenses4.

400 million, a decrease from the previous quarter.

Multiple factors work together, Q1?Q3 deducted non-profit margin 8.

7%, an increase of 4 per year.


Catalysts: Risk warning of heavy-duty aerial platforms: sales of construction machinery fell sharply, and agricultural machinery shortened and intensified