Hottest construction machinery 2013 mid-term repor

2013 interim report of construction machinery: leverage to reduce the asset turnover to the bottom

adjust the screw to the appropriate position for Sany Heavy Industry, Zoomlion Heavy Industry, XCMG machinery, Liugong, Xiamen Engineering Co., Ltd., Shantui Co., Ltd., Anhui Heli, Changlin Co., Ltd., Shanhe intelligent, Hebei Xuangong 10; The main financial indicators of the listed companies in the construction machinery industry from 2008q1 to 2013q2 of the tightening oil return valve are compared and analyzed quarter by quarter. Combined with the recent industry views, it is summarized as follows

the market recovers slowly, the revenue decline of the construction machinery sector is still high, and the profit decline has narrowed. The sales volume of earth moving machinery (excavators, loaders, bulldozers, etc.) and road machinery increased from negative to positive in the second quarter of this year in accordance with the national high-speed rail development plans; The year-on-year growth rate of forklift sales changed from negative to positive in the first quarter of this year; The year-on-year decline in the sales of hoisting machinery and concrete machinery is still large. Since this year, the demand for construction machinery from engineering projects has recovered, but the market saturation of construction machinery and equipment is high, the utilization rate of stock equipment has rebounded limited or even continued to decline, and the recovery of construction machinery manufacturing industry is slow. In the second quarter of this year, the total operating revenue of the ten companies fell by 22% year-on-year to 43.7 billion yuan; The total net profit attributable to the parent decreased by 42% year-on-year to 4.1 billion yuan; So far in this downward cycle, the operating revenue in the past three quarters has fallen the most year-on-year and is roughly the same; The net profit in the fourth quarter of last year fell the most year-on-year. The manhole cover pressure fatigue testing machine has great progressiveness and performance characteristics, and the decline has narrowed in the first and second quarters of this year

the overall gross profit margin continued to decline, and the sales expense rate and management expense rate continued to rise, thus the profit margin continued to decline; However, the profit margins of some companies have begun to improve year-on-year, such as Liugong and Anhui Heli. In the second quarter of this year, the gross profit margin of the overall sales of the ten companies fell by 3.0 percentage points year-on-year to 25.1%, mainly affected by the changes in product structure (especially concrete machinery); Through cost reduction and efficiency increase, the gross profit margin of individual products is mostly flat or slightly increased year-on-year; The overall gross profit margin of sales has declined year-on-year for five consecutive quarters. Due to the decline in revenue scale, and some relatively rigid sales expenses and management expenses decreased slightly or even increased year-on-year, the overall sales and management expenses ratio continued to rise year-on-year, and frequently hit a new high in the same period since 2008. In the second quarter of this year, the overall sales expense rate increased by 0.6 percentage points year-on-year to 6.1%, and the management expense rate increased by 7.4.2. The sampling number was 0.5 percentage points to 5.0% according to table 4. Due to the growth of exchange earnings and the decline of the scale of interest bearing liabilities, the overall financial expense rate in the second quarter fell by 1.3 percentage points to 0.7%. In the second quarter, the overall operating profit decreased by 39% year-on-year to 4.9 billion yuan, and the operating profit margin decreased by 3.2 percentage points to 11.3%; The net profit decreased by 42% year-on-year to 4.2 billion yuan, and the net interest rate decreased by 3.3 percentage points to 9.7%. In the second quarter of this year, the overall operating profit margin and net interest rate fell to the lowest level in the same period since 2009, and have declined year-on-year for eight consecutive quarters

since the second quarter of last year, companies have controlled credit sales and strengthened collection, and the expansion of the scale of accounts receivable is slowing down; However, the overdue rate of receivables has increased significantly, and the improvement of cash flow from operating activities is weak. In the second half of the year, we will continue to adopt prudent sales strategies and strengthen the risk control of receivables. At the end of the second quarter of this year, the total accounts receivable reached 83.4 billion yuan, an increase of 17% year-on-year, while the year-on-year growth rates in the previous four quarters were 54%, 52%, 49% and 31% respectively. The expansion rate of the overall scale of accounts receivable generated by installment sales is slowing down. In addition, the overdue rate of accounts receivable has increased significantly, and the consequences of leveraging to promote sales still need to be digested for a long time. The net cash flow from overall operating activities has improved in the second half of 2012 and the first half of this year, but the improvement is weak

the overall scale of interest bearing liabilities and monetary capital reserves decreased year-on-year, and the monetary capital reserves of various companies were significantly different; Compared with the average monetary capital/operating income data of the same period in recent years, the current monetary capital reserves of major companies are relatively abundant. At the end of the second quarter of this year, compared with the beginning of the year, the ten companies increased their interest bearing liabilities by 2.2 billion yuan in total; On a year-on-year basis, the total interest bearing liabilities of the ten companies decreased by about 2.4 billion yuan. At the same time, due to the adjustment of the structure of long-term and short-term debt, increasing the proportion of long-term interest bearing liabilities and reducing the pressure of short-term debt repayment, the average current ratio and quick ratio of the ten companies increased year-on-year

the overall inventory turnover rate and asset turnover rate continued to decline, but the asset turnover rate of some companies has begun to improve year-on-year, such as Liugong, Anhui Heli, etc. At the end of the second quarter of this year, the total inventory of the ten companies was 43billion yuan, a slight increase of 3% year-on-year. From the second half of 2012 to now, the overall inventory has been controlled at a level basically equivalent to that of the same period of the previous year. However, under the background of the contraction of sales scale, the inventory turnover rate has declined significantly. At the end of the second quarter of this year, the total advance receipts of the ten companies were 3.9 billion yuan, an increase of only 2% year-on-year. The overall asset turnover rate in the second quarter was 0.16, significantly lower than 0.22 in the same period last year, and the overall asset turnover rate has decreased year-on-year for 12 consecutive quarters

the overall scale of projects under construction of the ten companies has declined year-on-year since the fourth quarter of last year, and has lasted for three quarters at present; With the conversion of construction in progress to fixed assets, the overall scale of fixed assets continued to rise year-on-year. We still estimate that the gap between supply and demand of industrial capacity reached a high point (supply and demand) in the second and third quarters of this year, and then with the recovery of market prosperity, the situation of overcapacity began to ease gradually, and the capacity utilization rate will begin to rise restoratively (year-on-year). At the end of the second quarter, the total fixed assets were 34.6 billion yuan, an increase of 18% year-on-year, and the proportion of overall fixed assets in total assets increased by 1.6 percentage points to 12.7%; The total construction in progress was 9.1 billion yuan, a year-on-year decrease of 8%, and the proportion of overall construction in progress in total assets decreased by 0.4 percentage points to 3.4%

due to the decline of net interest rate, asset turnover rate and asset liability ratio, the overall ROE (diluted) of the ten companies in the second quarter of this year was only 3.7%, a sharp decrease of 3.2 percentage points year-on-year, and has decreased year-on-year for nine consecutive quarters. Among them, Zoomlion ranked first with the highest net sales interest rate, medium asset turnover rate and asset liability ratio, and the roe level of 5.5% in a single quarter in the second quarter

it is expected that the growth rate of domestic infrastructure investment in the second half of the year will have limited room to improve, and the new real estate construction will still operate at a low level. The possibility of a sustainable recovery in the utilization rate of construction machinery equipment and a significant easing of the capital pressure in the industrial chain (reflected in the decline in the overdue rate of accounts receivable) is still very small. Therefore, the probability of decline in the demand of the construction machinery market in the second half of the year is still high, and the recovery of the construction machinery industry with excess capacity will still be relatively slow. Major manufacturers in the industry will continue to strictly control business risks, implement prudent sales strategies, and actively strengthen product competitiveness, reduce costs and increase efficiency through R & D and innovation