The second quarter of the construction machinery industry market can still be optimistic

The first quarter operating and net profit of construction machinery industry increased significantly year-on-year, leading to a gradual increase in market share; overall gross profit margin increased year-on-year in the first quarter, the company's gross profit margin rose unevenly; operating efficiency increased, the cost rate during the period improved significantly; net margin was near The highest in 3 years, starting from 2009Q2, the year-on-year growth of net profit was higher than the year-on-year growth rate of operating revenue for 8 consecutive quarters. The profitability of listed companies was gradually improving, and the leading profitability improvement was even more pronounced. Since 2009Q1, quarterly adjusted operating income Net profit increased for the first time in nine consecutive quarters and has not peaked.

In the first quarter, the balance of accounts receivable increased significantly year-on-year, the proportion of credit sales increased gradually, the proportion of advance receipts to operating income decreased year-on-year, and the sales strategy was relatively aggressive; the debt-to-asset ratio rose on a chain-on-month basis, but was still at a relatively low level in the past three years. The level of solvency protection is still relatively high; the debt-to-equity ratio of some companies exceeds 60%, and there is a need for financing.

In the first quarter, overall ROE was at the highest level in the past three years, and Sany Heavy Industry was absolutely leading. In the short term, there will be no excess production capacity, technical thresholds, and self-sufficiency rate of accessories will continue to increase, and market concentration will increase. It is expected that high ROE will be maintained.

Listed companies are making robust expansion of their production capacity with strong sales of construction machinery products. They must be alert to the increase in depreciation of fixed assets and affect profitability; Sany Heavy Industry and Liugong are the first to start large-scale capacity expansion and construction in 2010Q1, in this cycle of booming economy. Will benefit the most.

The anti-seasonal purchase surge in the first quarter may be the single-quarter high since 2009Q1 and this year. Considering domestic tightening policies and the impact of the shortage of Japanese parts and components that are underestimated by the market, we remain cautious about the industry sales from May to July this year and are optimistic about leading companies.