On the afternoon of April 23, Sany Heavy Industry released its 2019 annual report. According to the report, the company's operating income in 2019 was 75.665 billion yuan, an increase of 35.55% year-on-year; the net profit attributable to shareholders of listed companies was 11.207 billion yuan, an increase of 83.23%; The company plans to distribute RMB 4.20 cash dividends (including tax) for every 10 shares of shareholders. Sany Heavy Industry said that in 2019, the company's operating efficiency and per capita output value will increase significantly, profitability will continue to improve, and operating risk control will be at the best level in history.
CITIC Securities pointed out that the company's revenue in 2019 was 75.67 billion / + 35.6%, and the net profit attributable to the mother was 11.21 billion / + 83.2%. The company's performance hit a record high. The recent steady economic growth and counter-cyclical adjustment policies continue to work hard. The industry boom + market share increase + price elasticity will drive the company's profitability to increase rapidly. Because the actual income in 2019 is slightly different from the previous forecast, the company's net profit forecast for the mother in 2020-2021 will be fine-tuned to 160.0 / 18.53 billion yuan.
Reasons for changes in operating income: Mainly due to factors such as domestic infrastructure construction, enhanced environmental protection, increased demand for equipment replacement, and artificial substitution effects, etc., driving the increase in sales of construction machinery, and the company's product competitiveness has increased significantly.
Leading products have global competitiveness
In 2019, the construction machinery industry continues to grow rapidly. The company's core competitiveness in R & D, innovation, intelligent manufacturing, and marketing services continues to increase, leading products continue to increase market share at home and abroad, and have global competitiveness.
The annual report shows that in 2019, the sales revenue of Sany excavating machinery was 27.624 billion yuan, an increase of 43.52% year-on-year. The domestic market has been the sales champion for nine consecutive years, and the market share has accelerated. The annual sales exceeded 60,000 units.
The sales revenue of lifting machinery reached 13.979 billion yuan, a year-on-year increase of 49.55%, sales reached a record high, the market position was significantly improved, and crawler cranes ranked first in the industry.
The sales revenue of pile driving machinery was 4.809 billion yuan, a year-on-year increase of 2.54%, ranking firmly among the top brands in China.
Excavator: Concrete machinery achieved sales revenue of RMB 2.32 billion, a year-on-year increase of 36.76%. It is firmly ranked first in the world and continues to consolidate its market position. In 2019, excavator revenue was 27.6 billion yuan, an increase of 43.5% year-on-year, sales of 61,000 units, an increase of 29% year-on-year, far exceeding the industry. The market share increased to 25.8%, an increase of 2.8pct year-on-year, and the market share increased to 25.9 in March 2020 %. The gross profit margin of excavators in 2019 was 38.6%, compared with the gross profit margin of 36.8% in the first half, and the gross profit margin increased to 41% in the second half. Since mid-to-late March 2020, infrastructure projects under the influence of the epidemic have accelerated their resumption. The peak season for excavators has been postponed, and downstream demand has erupted. OEMs led by Sany have increased the price of small excavations by 10% and medium and large excavations by 5%. Under the influence of the epidemic in 2020, infrastructure investment is expected to increase, and the margin of real estate will improve. The annual sales of excavators are expected to increase by more than 10%. The company's market share is expected to continue to increase under the support of technology, cost performance and supply chain advantages.
Concrete Machinery: Revenue in 2019 was 23.2 billion yuan, an increase of 37% year-on-year, ranking first in the world, and the market position continued to be consolidated. The gross profit margin was 29.8%, a significant increase of 4.6pct year-on-year. The sales volume of the concrete pump truck industry in 2019 is about 8,000 units, with a year-on-year growth rate maintained at a relatively high growth rate; the sales volume of the mixer truck is expected to increase rapidly under the background of the tightening of super-policy policies, and the old machine elimination + environmental protection replacement continues to drive growth.
Lifting machinery: Revenue in 2019 reached 14 billion yuan, a year-on-year increase of 50%, sales reached a record high, and crawler cranes ranked first in the industry. The gross profit of hoisting machinery in 2019 was 24.3%, basically the same as the same period last year. Infrastructure investment in 2020 is expected to exceed expectations, supporting truck crane sales.
In terms of products, the sales volume of excavators exceeded 60,000 units, and the sales revenue reached 27.624 billion yuan, an increase of 43.52% year-on-year. It has been the sales champion in the domestic market for 9 consecutive years. Ranked the first brand in the world; the sales revenue of hoisting machinery reached 13.979 billion yuan, an increase of 49.55% year-on-year, and sales reached a record high; the sales revenue of pile driving machinery was 4.809 billion yuan, an increase of 2.54% year-on-year, firmly ranking the first brand in China.
In terms of different regions, Sany Heavy Industry has exploited the advantages of overseas industrial layout and vigorously expanded the “Belt and Road” markets and developed countries markets, while achieving international sales revenue of 14.167 billion yuan, an increase of 3.96% year-on-year. Among them, sales in major overseas sales regions including Indonesia, Sany America, Sany Europe, Russia, and Latin America have achieved rapid growth.
The performance data hit a record high, and the operating quality reached the highest level in history. In 2019, while Sany Heavy Industry's net revenues increased significantly, both expenses were effectively controlled at 14.72%, a decrease of 0.3 percentage points from 2018; the number of days receivable turnover and excess futures continued to decline significantly; net cash flow from operating activities Reaching a record high; through digital transformation, the average output value of Sany's workers is at the leading level in the global construction machinery industry.
Management ability is the best in history
During the reporting period, the company vigorously promoted digital transformation, and its operating efficiency, per capita output value and profitability increased substantially.
During the reporting period, the company's overall gross profit margin was 33.26%, an increase of 2.14 percentage points; sales net profit margin was 15.19%, an increase of 3.9 percentage points, and net profit was 11.207 billion yuan, a year-on-year increase of 83.23%, and high profit quality.
In addition, the company's period expense rate was 14.72%, a decrease of 0.3 percentage points from 2018, and the sales expense rate, management expense rate, and finance expense rate decreased by 0.71, 0.95, and 0.3 percentage points, respectively.
The turnover days of accounts receivable fell to 103 days, and over-futures continued to decline significantly, with cash flow of 13.265 billion yuan, a year-on-year increase of 26.01%, and a record high.
Digital transformation makes positive progress
In 2019, the company actively promoted the transformation of digitalization and intelligence, implemented digital projects such as Sanxian data, device interconnection, PLM, CRM, SCM and made positive progress, and promoted the online and intelligentization of various businesses.
On the one hand, promote the online production equipment, materials and personnel, transparently and finely manage production organization methods, process routes, machine operation and maintenance, auxiliary materials consumption, etc., to eliminate manufacturing black holes.
On the other hand, the company promotes the onlineization of customer equipment, greatly improving marketing capabilities and after-sales service efficiency.
In 2019, through digital transformation, the company's operating capacity has been greatly improved, and the company's per capita output value is at the leading level in the global construction machinery industry.
Overseas sales have grown steadily
In 2019, the company achieved international sales revenue of 14.167 billion yuan, the company's overseas sales still maintained stable growth, and its export market position has significantly improved.
The company's major overseas sales regions have achieved sales growth. Among them, sales in Indonesia, Sany America, Sany Europe, Russia, and Latin America all achieved rapid growth.
In 2019, the company's response capabilities and service capabilities in overseas markets have been further improved.
Among them, the construction of the agent system, major customer system, service accessory system, etc. has been further improved, the market channel capacity has been enhanced, and the overseas market position has been significantly improved.
Significant achievements in R & D and innovation
As of the end of 2019, the company has accumulatively applied 9151 patents and authorized 7298 patents, ranking first in the domestic industry in terms of applications and authorizations.
The company actively promotes open research and development, introduces and upgrades simulation technology and other research and development work. It has launched a number of highly competitive innovative products such as SY550H and other H series excavators, 55 tons of T series truck cranes, and YM5440THBV 620C-10A concrete pump trucks.
In addition, the company has increased the research and development of intelligent products, and achieved breakthroughs in the use of unmanned road construction machines and other related technologies, and the related technologies are at the leading level in the industry.
Salary system reform stimulates talent vitality
During the reporting period, the company promoted the reform of the remuneration and incentive system, established a remuneration system with clear hierarchies and clear positions, and a relatively complete talent incentive system, which significantly increased employee remuneration.
Equity incentives were successfully implemented, providing a highly competitive salary system, and per capita productivity has increased significantly.
Many measures promote the introduction of digital talents, international talents, innovative talents, management talents and excellent skilled workers, and strongly support the company's digital and international strategy.
The company's brand image is further enhanced
During the reporting period, the company's brand image was further improved.
In 2019, Sany Heavy Industry participated in the 70th National Day celebration of the founding of New China, and six Trinity Cranes raised the giant flag of Tiananmen.
In addition, Sany Heavy Industry has successively won the "Fortune" 2019 Most Admired Chinese Companies, CCTV "70 Brands of the 70th Anniversary of the Founding of New China", People's Daily "China Brand Development Index 100 List", Central Radio and Television Station "Model 100 Brands, etc , Brand awards continue.
During Labor Day, Sany Heavy Industry Pumping Company Manufacturing Department was awarded the "National Worker Pioneer", which is the highest collective honor for workers across the country.
In November last year, "Japan Economic News" reported that China Sany Heavy Industry ranked among the top three global construction machinery.
At present, the company is at the best point in history. Sany will adhere to long-termism, deepen the consensus on "operating environment, core capabilities and ideal mission", seize digital opportunities, achieve high-quality development, and adhere to beliefs and values. Trinity will "compete day and night, not lose Shaohua", make Sany a world-class enterprise in manufacturing, and make due contributions to the realization of the Chinese dream of the great rejuvenation of the Chinese nation.
