Annual report analysis and 2004 outlook of the hot

2022-10-20
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Annual report analysis and 2004 outlook of listed construction machinery companies

annual report analysis and 2004 outlook of listed construction machinery companies

China Construction machinery information

Guide: at present, the 2003 annual report of listed construction machinery companies has been disclosed. On the whole, these companies benefit from the rapid development of the national economy and large-scale investment in infrastructure construction, and their overall performance is good. (feel the most shocking attack band of China's stock market) the overall performance is good 200

at present, the 2003 annual report of listed construction machinery companies has been disclosed. On the whole, these companies benefit from the rapid development of the national economy and large-scale investment in infrastructure construction, and their overall performance is good. (feel the most shocking attack band of China's stock market...)

overall good performance

China's GDP growth rate was 9.1% in 2003. Stimulated by the rapid growth of the national economy and the acceleration of infrastructure construction by the state, the construction machinery industry continued to maintain a rapid development momentum, with the sales revenue of the whole industry reaching 77billion yuan, an increase of 16.7% year-on-year; The profit was 4.6 billion yuan, an increase of 12.2%. (exclusive securities reference, looking at the stock market from a new perspective...)

as a representative of the industry, the annual reports of listed construction machinery companies in 2003 have the following characteristics:

1. The overall efficiency has been improved, and the performance has been differentiated

most of the listed construction machinery companies are the backbone core assets of major construction machinery groups, benefiting from the rapid development of the industry, and their performance has generally increased significantly. In 2003, the average earnings per share was 0.36 yuan, the return on net assets was 11.1%, the main business income was 1.545 billion yuan, and the net profit was 113 million yuan. XCMG Technology (000425) is the champion of main business income, Sany Heavy Industry (600031) has the highest earnings per share and net profit, and Changlin shares (600710) has the highest return on net assets

on the whole, the profitability of these listed companies is higher than the industry average, indicating their leading position and competitive advantage in the industry; At the same time, the main financial data is better than the average level of Listed Companies in Shanghai and Shenzhen, and the stock investment value is higher. From the perspective of net profit and earnings per share, the performance differentiation of Companies in the industry has intensified. Companies with high efficiency continue to grow at a high speed, while the performance of low profit companies with general efficiency continues to decline

2. Operating income achieves the same goal by different means

the reasons why companies achieve better benefits are closely related to their own efforts in addition to the favorable external environment. Companies generally seize market opportunities and strive to enhance profitability, but their ways are different

Guilin Liugong (000528) is mainly engaged in the production of loaders. On the basis of maintaining the advantages of this product, such as suddenly stopping working, the company has increased the development of other products and achieved certain results

the business scope of Shantui Co., Ltd. (000680) has been adjusted from the original manufacturing and sales of excavators and bulldozers to bulldozers. The company has concentrated on bulldozer products to further consolidate its position as the first in the industry

the above situation shows that all companies, based on their own actual situation, give full play to their comprehensive advantages, explore the best business direction and business model, and generally improve their profitability

3. The growth rate of net profit is lower than that of main business income

in 2003, the average growth rate of main business income of such companies was 49.27%, and the growth rate of net profit was 39.05%. The growth rate of net profit was lower than that of main business income. The main reason is the rise in the price of raw materials such as steel, resulting in the rise in costs, which is faster than the growth rate of revenue, reducing the level of gross profit margin

4. There are hidden worries in the operation of enterprises

although the performance of companies is generally good, there are also some hidden worries, which are mainly reflected in the increase in accounts receivable and the decrease in operating cash flow. The average cash flow of operating activities per share is 0.14 yuan, which is lower than the level of earnings per share of 0.36 yuan, reflecting the fierce competition in the industry than in the early stage. It is more difficult for some enterprises to collect sales, resulting in the increase in accounts receivable and the decrease in cash flow. The above situation shows that the peak period of the development of the construction machinery industry is almost over, and the later development speed may decline

in addition, the inventory of each company increased by an average of 46.21% over the previous year. Analysts believe that the increase in inventory needs specific analysis. Inventories can be divided into raw materials, products in process and finished products by nature. If the enterprise's inventory is due to the increase of raw material reserves, it is safe and necessary, especially since last year, the price of steel and other materials has continued to rise. Enterprises increase this kind of materials. 4. Equipment non-stop inventory after sample fracture can resolve the pressure of rising costs, which is a positive response. If the inventory is mainly finished goods inventory, it indicates that the enterprise has poor sales and must be vigilant and compressed as soon as possible

on the other hand, the average growth rate of accounts receivable (23.97%) and inventory (46.21%) are lower than the growth rate of main business income (49.27%), which also shows that the current growth rate of accounts receivable and inventory is still within an acceptable level and controllable range

5. Institutional investors are optimistic about this kind of company

the good performance of listed construction machinery companies and the leading position of each company in the industry have attracted the attention of institutional investors. The list of the top ten tradable shares in the annual report shows that funds, securities companies and social security funds hold more shares

for example, GF Securities holds Shantui shares and Zoomlion respectively, and other securities companies such as Southwest Securities, Guosen Securities and Guohai Securities also hold the shares of the above companies. E fund's funds jointly hold Shantui shares and Zoomlion, Cathay Pacific Fund's funds jointly hold Changlin shares, fund Hongyang is the largest circulating shareholder of Sany Heavy Industry, and Penghua Fund is fully involved in the size deviation and appearance stocks in Table 1 above. Notably, NSSF 101 holds Shantui shares, Changlin shares and Guilin Liugong, while NSSF 104 holds Guilin Liugong and Changlin shares

6. Although the performance is good, the dividends are less

although the above companies have good performance, the drawback is that the dividends are generally less. Except for Sany Heavy Industry (5 out of 10) and Zoomlion Heavy Industry (0.25 out of 10 to 3), most companies have low distribution ratios, while Shantui shares, Changlin shares and other four companies do not

analysts believe that the low dividends are mainly affected by the unsatisfactory sales collection. The operating cash flow of some companies is general, which restricts the distribution capacity of the company. At the same time, in order to seize the current good market opportunities, companies have expanded production and invested valuable capital resources in reproduction, so they adopt the policy of low dividends or no distribution. For example, GUI Liugong said that from January to February 2004, the production and sales of products increased significantly year-on-year, and the shortage of working capital was more prominent. Therefore, the company applied for a share allotment and was approved by the issuance and examination committee

however, at present, the concept of rational investment in the securities market has been preliminarily established, investors pay more attention to the return on investment, and the low dividend plan may affect the market performance of these companies' stocks

main factors affecting the development of the industry

looking forward to 2004, the country emphasizes the scientific concept of development, the national economy will develop steadily, the infrastructure construction will maintain a certain scale, and the construction machinery industry still has great room for development, but the possible adverse factors are also worth noting:

1, macroeconomic environment

internationally, the world economy is in a medium-term recovery trend; Domestically, the expected target of economic growth this year is about 7%. This growth rate takes into account not only the continuity of macro-control objectives, but also the connection between the economic growth rate and the actual conditions of energy, important raw materials, transportation and so on. In general, a good macroeconomic environment is conducive to the healthy and steady development of the construction machinery industry

2. Major project construction

in 2004, the country will continue to implement the western development strategy, and the western region will become an important benefit growth point of construction machinery. The total investment of Beijing 2008 Olympic Games is about 280billion yuan, of which about 64% will be invested in infrastructure and venue construction

in addition, major projects such as the Three Gorges project, the South-to-North Water Diversion Project and the west to east gas transmission project will also enter the peak period of construction in 2004 and 2005. The construction of the above major projects provides a broad development space and market opportunities for the construction machinery industry

On February 4, the State Council held a teleconference to strictly control over investment in some industries, emphasizing the prevention of over investment in steel, electrolytic aluminum and cement industries

On April 9, the executive meeting of the State Council pointed out that the current investment growth is too fast, there are too many new projects, the scale of construction in progress is too large, and the investment structure is unreasonable. It is required to take further effective measures to effectively curb the momentum of excessive investment growth and maintain steady and rapid economic development

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