Sany Heavy Industry Co., Ltd. (600031): The performance forecast for the first quarter report exceeds the expected leader once again welcomes Davis double click!

Sany Heavy Industry Co., Ltd. (600031): The performance forecast for the first quarter report exceeds the expected leader once again welcomes Davis double click!

SANY Heavy Industry has released a quarterly performance forecast. It is expected that the net profit attributable to mothers will be 3 billion to 3.3 billion in the first quarter of 2019, an increase of 100% -120%, and the net profit attributable to non-mothers will be 2.9 billion to 31.

500 million, an increase of 133 every year.

5% -153.


The company’s performance exceeded expectations again, initially including the continued high boom in sales of construction machinery, the company’s domestic and foreign cities’ rapid increase in share, digital upgrades leading to improved operating quality and lower expense ratios leading to a substantial increase in profitability.

Excavator sales hit a record high in March, and the market share of Sany City is rapidly increasing. According to the China Construction Machinery Association, sales of excavators in March were 44,278, an increase of 15.

7%, of which 41,884 domestic sales, an increase of 14.

3%, exports (including Hong Kong and Macau) 2,394 units, an increase of 48% each year.

Q1 excavator sales totaled 74,779 units, an increase of 24 each year.

5%, a record high, of which 55,913 domestic sales, an increase of 23 each year.

9%, exports (including Hong Kong and Macao) 5,495 units, an increase of 32 each year.


SANY Heavy Industry sold 11,208 units in March, an increase of 35 per year.

2%, market share is 25.

3%, cumulative sales of 19,592 units in the first quarter, an increase of 52 each year.

3%, market share 26.


The company’s monthly sales in March, cumulative sales in the first quarter, and market share all hit record highs!

The increase in the share of CUDA led to improved profitability, and high export growth opened up room for growth. In March, domestic digging / medium digging / large digging sales volumes increased by 14% and 18 respectively.

6% and 7.

3%, the gradual growth rate was 27.

5%, 24% and 9.

2%, while Sany Heavy Industry ‘s small digging / medium digging / large digging sales growth rates were 33 in March.

6%, 62% and 11.

1%, the gradual growth rate is 55.

7%, 55.

9% and 33.

At 6%, the average monthly sales growth rate in March and the first quarter incremental growth rate were higher than the corresponding industry growth rates. The continuous optimization of the sales structure is expected to drive the gross profit rate to increase.

In March, the industry exports (including Hong Kong and Macao, the same below) were 2,394 units, an increase of 48% in the future, of which 成都桑拿网 Sany exported 764 units, accounting for 32 %%. In the first quarter, industry exports were 5,495, an increase of 32.

5%, of which 1934 units were exported by Sany, accounting for 35.


The crane market share ranks second in the industry, and the increase in export share has driven the recovery of gross profit margin. The growth rate of automobile crane sales in the industry from January to February increased by 58%, and the company’s sales increased by 92%.

3%, ranking second in the industry.

Since November 2018, the company’s truck crane market share has risen to the second in the industry, and the industry has gradually increased and consolidated in the first two months of 2019. With the rebound in the number of high-margin crane exports in 2018 H2, it has attempted to drive profit recovery.

The concrete sales 深圳桑拿网 channel continues to sink, the rural market contributes increased volume, and the profit level continues to increase. After the space is increased, the sales of concrete machinery in the cycle are still in the fast lane. Demand continues to sink in 2019.The proportion of gross profit pump trucks increased) is expected to drive the increase in gross profit margin. In 2018, the company’s concrete machinery gross profit margin was 25.

24%, when the previous round of industry highs exceeded 40%, there is still room to repair upwards.

The social financing in March surpassed expectations, favoring real estate and infrastructure investment, and the current forecast of the benchmark Carter is still attractive. New social financing 2 was added in March.
86 trillion, an increase of 1 previously.
29 trillion yuan, new RMB loans1.

96 trillion, an increase of 0 previously.

82 trillion yuan, which is good for infrastructure and real estate investment.

With the intensive construction period of the H2 infrastructure projects launched in 2018 and the clear infrastructure plans of the provinces in 2019, the pick-up time in three months has rebounded, which indicates that the downstream construction volume is not pessimistic. We are optimistic about the company’s actual strength in the high boom period of the industryRealize rapid increase in market share and profitability.

Benchmarking global leader Caterpillar (PE is more than 12 times in 2019), the company is currently growing stronger and is expected to have attractive revenue, which is expected to usher in a double-click by Davis.

Profit forecast and investment grade: Considering the company ‘s first-quarter report, the performance forecast exceeded expectations, Q1 excavator sales and crane sales continued to boom, and the company ‘s profit forecast was raised. The profit forecasts for 2019-2021 will be 9.3 billion, 10.4 billion, and 11.3 billion, respectively.It is raised to 10.2 billion, 12.2 billion and 13.5 billion, and adjusted EPS is 1.

22 yuan, 1.

46 yuan and 1.

61 yuan, corresponding to less than 11 times the PE in 2019. We will continue to recommend it and maintain the “Buy” rating!

Risk warning: Infrastructure investment falls below expectations, industry competition intensifies, and raw material prices fluctuate.

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