Depth-Company-Zhonglian Heavy Industry (000157): Accelerated completion of buybacks demonstrates confidence in future development

Depth * Company * Zoomlion (000157): Accelerated completion of repurchases highlights confidence in future development.

On June 29, the company announced the completion of the implementation of the share repurchase branch: since the company’s first implementation of the repurchase on May 17, 2019, as of June 28, 2019, the company concentrated on bidding through the special securities account for the repurchase of sharesWays to gradually repurchase company shares 武汉夜生活网 3.

900 million shares, accounting for 4 of the company’s total share capital on June 20, 2019.

99%, highest transaction price 6.

29 yuan / share, with a minimum transaction price of 5.

07 yuan / share, with a total transaction amount of 21.


  The key points of the support level: Within two months, bidding was concentrated to complete a large repurchase, which showed the company’s confidence in future development.

Since the company released the repurchase program on May 13, it completed 21 through centralized bidding in less than 2 months.

$ 400 million in share repurchases at an average cost of $ 5.

49 yuan / share, the intensity and speed of repurchases are at the leading level of listed companies, which also shows a pair of full confidence in the construction machinery industry and the company’s 杭州夜网论坛 future development prospects.

The repurchased shares will be used in the employee stock ownership plan, which will well integrate the interests of shareholders, the company, and employees, promote the further mobilization of team enthusiasm, strengthen employee loyalty, enhance investor confidence, promote the company’s healthy, sustainable and stable development.

  Concrete machinery and engineering cranes rank among the top 2 in the industry, and are the main engine leaders with the most flexible performance in the middle and late stages of the industry.

The company’s concrete machinery technology is leading in the world. As a duopoly in the industry with Sany, after re-strategizing key construction machinery, it includes a wide range of loyal customers and high-quality after-sales service, and the company’s market share will further increase.

XCMG, Zhonglian, and Trinity truck crane, the company has obvious advantages in tonnages such as 25t, 70t, and 80t. In 18 years, it introduced a number of new products to replace the old products and significantly upgraded.Consolidated, on June 21, 2019, the company further launched 7 powerful new products, ranging from 12 tons to 110 tons, from 4 to 7 knuckle arms, and the industry’s first 80 ton 7 knuckle arm products, with a maximum lifting height of 90

5m, the operating conditions can cover 100 tons of products in the industry, the gap between the company’s truck crane market share and industry leaders will continue to narrow.

The company’s main products of construction machinery, the boom graded excavators, are lagging behind, so its performance in 19 years is the highest certainty, and the performance flexibility is also the largest.

  Tower cranes have a high degree of prosperity, and the revenue of global leaders is expected to hit tens of billions.

After the tower crane sales in the past 4 years broke through a cliff-like decline and the real estate investment continued to grow, the industry’s excess capacity has been fully digested. Tower cranes began to recover from 2017, and a new cycle of prosperity began.

The demand for medium-to-large tower cranes brought about by the vigorous development of prefabricated buildings has a demand gap of approximately 70,000 units by 2025, bringing an average increase of nearly 10,000 units per year.

As a global leader in tower cranes, the company has a market share of nearly 40%. At present, it has full orders and is basically in full production every month. It is expected that its revenue in 2019 will be about $ 8.5 billion and it is expected to hit 10 billion in 2020.

  Agricultural machinery continued to reduce losses, and new industries such as aerial work platforms and excavators continued to exert their strength.

The company’s agricultural machinery revenue in 2018 was 14.

8 ppm, gross margin is only 6.

9%, continued to decline. In 19, the company began to adjust the structure of agricultural machinery products, increase the research and development and sales of cash crops and agricultural machinery, accelerate the implementation of artificial intelligence in the field of agricultural machinery, gradually reduce losses in 19 years;New industries such as excavators are recognized by the company and are the focus of the company’s subsequent development. New products launched are widely praised by users, the number of orders has increased significantly, and it is expected to form a breakthrough performance increase in the future.

  It is estimated that the company’s net profit attributable to its mother in 2019-2021 will be 38.



4 trillion, the corresponding EPS is 0.



74 yuan / share, the corresponding PE is 12 respectively.



2x, maintain BUY rating.

  The main risks facing the rating The construction machinery industry’s prosperity exceeded expectations, industry competition intensified, and infrastructure and real estate investment exceeded expectations.