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Hengli Hydraulics (601100): 18-year performance growth, eye-catching cash flow improvement significantly, 19Q1 net profit doubled again

Hengli Hydraulics (601100): 18-year performance growth, eye-catching cash flow improvement significantly, 19Q1 net profit doubled again

Hengli Hydraulics (601100): 18-year performance growth, eye-catching cash flow improvement significantly, 19Q1 net profit doubled again

Event: The company disclosed its 2018 annual report, and the company realized operating income42.

11 trillion, an increase of 50 in ten years.

65%, realizing net profit attributable to mother 8.

3.7 billion, an annual increase of 119.

05%.

The company plans to pay 3 yuan for every 10 shares.

At the same time, the company disclosed the first quarter report of 2019 and realized revenue of 15.

690,000 yuan, an annual increase of 61.

63%, net profit attributable to mothers3.

2.6 billion, an annual increase of 108.

13%.

Ping An’s perspective: Revenue growth is dazzling, 杭州桑拿网 and gross profit margin continues to rise.

In 2018, the company’s revenue growth rate was bright. Among them, excavator cylinders, non-standard cylinders, hydraulic pump valves, components and hydraulic complete sets, cylinder accessories and castings achieved revenue of 18 respectively.

1.1 billion / 11.

4.4 billion / 4.

7.9 billion / 2.

01 billion / 5.

3.7 billion, an increase of 56.

95% / 9.

73% / 92.

46% / 17.

21% / 226.

36%.

Excavator sales for the full year 2018 increased by 44 per year.

The growth rate of the company’s excavator oil cylinders is higher than the industry growth rate of 99%, which reflects the leading advantages of the industry.

The growth rate of non-standard cylinders, components and hydraulic complete sets is stable. The growth rate of non-standard cylinders is related to the company’s adjustment of non-standard cylinder production capacity to support the production capacity of excavator cylinders.

The growth rate of hydraulic pump valves is nearly doubled. At present, the company ‘s small digging pump valve market share has reached nearly 30%. Medium and large digging pump valves have begun to support OEMs in small batches. Pump valve revenue is expected to continue to increase.

The growth rate of cylinder fittings and castings exceeded 226%, which was mainly driven by the production of castings.

Due to the large increase in the volume of income and the increase in gross profit margin due to scale effects, the company’s comprehensive gross profit margin increased by 3 in 2018.

76 up to 36.

58%.

Among them, excavator cylinders, non-standard cylinders, hydraulic pump valves, components and hydraulic complete sets, cylinder accessories and castings have gross margins of 41, respectively.

35% / 35.

07% / 29.

66% / 21.

07% / 35.

74%, an increase of 2 respectively.

55/3.44/11.

09/4.

28/0.

27 units.

The gross profit margin of the oil cylinder business has steadily increased. After the hydraulic pump valve has passed the key R & D and trial period, the gross profit margin has started to climb. The stable initial value of parts and gross profit margin is that the gross profit margin of castings is slightly lower.increase.

The cash flow situation has improved significantly and overseas expansion is smooth.

The company’s net cash flow from operating activities in 2018 was 7.

99 ‰, which is close to the net profit and grows by 418 per year.

04%.

In 2016, the company’s net cash flow from operating activities in 2017 was 7.36 million yuan and 1.

540,000 yuan, the company’s cash flow situation improved significantly in 2018.

The company expands overseas markets through mergers and acquisitions of German companies such as Harvey Inle and the establishment of companies in the United States and Japan.

The company achieved overseas revenue in 20189.

470,000 yuan, an increase of 47 in ten years.

74%, accounting for 22% of total income.

49%.

While achieving import substitution, the company is advancing towards the strategic goal of global equipment and is expected to become the world’s leading supplier of hydraulic components and hydraulic systems.

19Q1 net profit doubled again, resulting in non-pessimistic.

In the first quarter of 2019, the company’s revenue continued to grow rapidly, and its net profit doubled again.

Since the beginning of the year, driven by counter-cyclical adjustment policies, long-term infrastructure and real estate investment growth has rebounded rapidly, driving construction machinery to continue to grow.

In January 2019, a total of 7 excavators were sold in the quarter.

480,000 units, an increase of 24 in ten years.

5%.

The company plans to increase its revenue growth by no less than 15% in 2019. We believe that the probability will be higher than expected (the company’s plan for 2018 is more than 20%, and the actual growth rate will reach 50).

65%).

The capital expenditure for 2019 is planned to be 300 million, which is mainly used for the technical renovation projects of oil cylinders, the construction of hydraulic system plants and the second-phase project of high-precision hydraulic castings.

We believe that although the company’s products have performance, the overall growth rate of the industry in 2019 is not pessimistic. The company’s cylinder business is accompanied by industry growth, hydraulic pump valves are centered, large digging pump valves penetrate, casting business continues to expand, and performance has maintained good growth.

Investment suggestion: Taking into account changes in the growth rate of the industry, fine-tuning the company’s profit forecast, the company is expected to achieve a net profit of 11 in 2019-2021.

39 billion / 13.

5.9 billion / 15.

2.3 billion (before 2019-2020) 10.

6.9 billion / 13.

5.1 billion), EPS is 1.

29 yuan / 1.

54 yuan / 1.

73 yuan (average 1 before 2019-2020).

21 yuan / 1.

53 yuan), the corresponding price-earnings ratio is 24 times / 20 times / 18 times.

As a domestic leader in hydraulic components, the company’s revenue has grown rapidly, and its profitability has continued to increase.

Risk reminders: 1) The demand of the construction machinery industry is decreasing.As the company’s main product, the excavator oil cylinder is closely related to the downstream engineering machinery industry. If the demand for construction machinery lands significantly, the company’s excavator oil cylinder business will accompany it.

2) Metro construction investment increases expressway.

The downstream requirements of the company’s non-standard oil cylinders include shield machines, high-end marine engineering, and lifting series, of which shield machine cylinders have been the main driving force for growth in recent years.

If the growth rate of investment in rail transit construction in the future accelerates, the demand for shield machines will follow, and the company’s non-standard cylinder business will not grow as expected.

3) The business development of hydraulic pump valves was less than expected.

The company’s latest pioneer in hydraulic pump valve business is mainly overseas giants, if the 成都桑拿网 company’s new business development is less than expected, it will lead to overall performance growth.