Construction Machinery (600984)： Third quarter notice continues high growth prefabricated buildings to provide development momentum
Construction Machinery (600984): Third quarter notice continues high-growth prefabricated buildings to provide development momentum
Event: The company released a third-quarter 2019 pre-announcement announcement, which is expected to return to net profit for the first three quarters3.
820,000 yuan, an increase of 228 in ten years.
Q3 single quarter results were about 1.
0.94 million yuan, a sharp increase of 240%.
Tower crane leasing has a high growth, and continuous expansion is the basis for subsequent growth. The announcement shows that the rental income of construction machinery in the first three quarters increased by about 50%, mainly benefiting from the increase in volume and price of high-ton meter tower cranes.
The rental price is determined by the supply and demand of tower cranes on the stock market. On the demand side, prefabricated buildings are rapidly emerging, which has created a huge demand for high-tonnage equipment. On the supply side, the average tonnage of Pangyuan equipment is around 226, which is significantly ahead of peers.Supply-side competition is strong, and we have the right to speak the price. We 杭州夜网论坛 expect the rental price to continue to grow in the future.
The announcement shows that from January to September this year, the company’s procurement of leased equipment increased by 74%, and continued equipment expansion is the basis for subsequent growth.
Leading manufacturer of construction machinery leasing has a long-term growth space.
The tower crane leasing industry is an operating lease + wet lease model, which places high requirements on the company’s equipment management, personnel management, and customer service capabilities.
Peer peers include Zizhu Huihe Zhenghe Leasing, with total tower crane holdings of more than 1,000 and 400 units, respectively. At the end of Pangyuan Leasing at the end of 18, the inventory of 4,271 has been far ahead.
It is not seen that the ROE of an enterprise is the core factor that determines whether it is able to continue to purchase equipment. Pangyuan Leasing’s ROE reached 7%, 10%, and 13% in 16-18 years, compared to 6% and 4% respectively.And 2%; it can be seen that with its peer ranking, Pang Yuan has stronger expansion power and ability.
At present, Pangyuan’s national market share is less than 3%, and there is broad room for future growth.
Profit forecast and investment advice: We expect the company’s net profit for 2019-2021 to be 5 respectively.
8.6 billion, 8.
45 ppm and 11.
07 ppm, corresponding to PE, 15 times, 10 times and 8 times, respectively, assigned a “buy” rating.
Risk warning: Tower crane rental competition deteriorates and real estate construction demand decreases.