On July 15, the National Bureau of statistics released the national economic report card for the first half of 2022. Under the impact of various unexpected factors, the economy withstood the pressure to achieve positive growth in the second quarter, and the GDP in the first half of the year increased by 2.5% year-on-year.
On the same day, listed companies in the construction machinery industry, such as Sany Heavy Industry, Zoomlion Heavy Industry, Shantui Co., Ltd., Weichai Power, Xiamen Construction Machinery Co., Ltd., respectively disclosed the semi annual performance forecast of 2022. As of July 15, a total of six enterprises, including Shanhe intelligence, announced their operations in the first half of the year.
But the results are not so ideal. The organic structure uses "knee chop" to describe this situation.
Net profit fell by more than 60% year-on-year
From the performance of each company in the first half of the year, except Shantui shares, the net profit is generally expected to decline significantly, with a decline of more than 60%, and Xiamen Construction Engineering Co., Ltd. is expected to lose money.
Sany Heavy Industry is expected to decline by more than 70%, and its net profit is the lowest since 2018.
Shantui Co., Ltd. said that it withdrew from Komatsu Shantui Construction Machinery Co., Ltd. due to capital reduction, and confirmed an investment income of 299million yuan (belonging to non recurring profits and losses), which led to a significant year-on-year increase in profits and a pre increase in net profits of 180% to 200%.
Benefiting from the stabilization and recovery of the macro economy, the slight recovery of infrastructure demand and the relative stability of the epidemic form, the downward trend of China's construction machinery market eased slightly in June. According to the statistics of China Construction Machinery Industry Association, the year-on-year and month on month decline in excavator sales in June narrowed, and the sales of loaders increased positively month on month. Data from the China Construction Machinery Industry Market Research Center also showed a weak recovery in various regions across the country. However, from the national policy to the real reflection of terminal sales, there will generally be delays. For the medium-term market, it still faces factors such as periodicity, flood season, (resumption) insufficient construction, rising raw material prices, etc., especially the continuous decline of the real estate market, which leads to increasing downward pressure and the overall process of accelerating bottoming.
According to the semi annual report performance of the above enterprises, the main reasons for the change in performance come from the following aspects (different enterprises may be affected differently):
1. The domestic construction machinery industry is still in the period of downward adjustment, and the market demand for construction machinery decreased in the first half of the year due to the impact of factors such as the slowdown of macroeconomic growth and the insufficient effective operating rate of projects.
2. Repeated outbreaks have had adverse effects on domestic product transportation and overseas logistics. Affected by factors such as supply chain tension and geopolitical conflicts, the cost pressure of overseas related subsidiaries has intensified.
3. In the first half of the year, the prices of raw materials such as steel and crude oil remained high, resulting in increased costs and decreased gross profit.
4. The sales price of products continued to decline, and the inventory depreciation loss increased.
5. The assistance to dealers has been strengthened, and the investment in market channels and services has increased.
Overseas growth continues unabated
Domestic growth continued to decline, while overseas growth continued unabated.
According to the statistics of China Construction Machinery Industry Association, 51970 excavators were exported in the first half of 2022, with a year-on-year increase of 72.2%. In March, the highest export volume was 10529 units, and the lowest was 7325 units in January, with a monthly average of 8661 units. The monthly export volume of excavators was close to the level of 9672 units in 2017.
The overseas performance of major listed companies has maintained rapid growth, the proportion of electrification products is increasing, and they continue to increase investment in the development of overseas markets.
According to public information, the export amount of XCMG in the first quarter of 2022 increased by 143% year-on-year, and the overall market export share increased by 9% year-on-year.
In the first half of 2022, the overseas sales revenue of Shanhe intelligent construction machinery is expected to increase by 50% year-on-year.
Liu Gong said on the investor interaction platform on July 9 that the company's overseas sales continued to grow rapidly in the first half of the year, and the growth rate significantly exceeded the industry level.
In order to improve international transportation efficiency and save logistics costs, Liugong signed a three-year strategic cooperation agreement with COSCO Marine Special Transportation Co., Ltd. COSCO Haite will provide Liugong with a special express line in the direction of Jakarta, Indonesia.
Zoomlion has also signed a cooperation with Sinotrans to set up special scheduled liners for some regions with hot markets, so as to fully ensure the smooth logistics and ensure the smooth delivery of products overseas on schedule.
Summary of performance forecast of major listed companies in the first half of the year
Sany Heavy Industry: it is estimated that the net profit attributable to shareholders of Listed Companies in the half year of 2022 will be 2.2 billion to 3 billion yuan, a year-on-year decrease of 78.16% to 70.22%.
Zoomlion: it is estimated that the net profit attributable to the parent company in the half year of 2022 will be 1.606 billion to 1.806 billion yuan, a year-on-year decrease of 62.76% to 66.88%.
Shanhe Intelligence: it is estimated that the net profit for the half year of 2022 will be 0~0.8 billion yuan, with a year-on-year decrease of 85%~100%.
During the reporting period, the overseas sales revenue of Shanhe intelligent construction machinery is expected to increase by 50% year-on-year.
Shantui shares: it is estimated that the net profit attributable to shareholders of Listed Companies in the half year of 2022 will be 399-427 million yuan, with a year-on-year increase of 180% - 200%.
XCMG: it is estimated that the net profit attributable to the owner of the parent company in the half year of 2022 will be -280million ~ 380million yuan, and there will be a loss year on year.
Weichai Power: it is estimated that the net profit attributable to shareholders of Listed Companies in the half year of 2022 will be 2.25-2.57 billion yuan, a year-on-year decrease of 60% - 65%. The net profit in the second quarter was between 1.2 billion and 1.522 billion yuan, an increase of 14% to 45% compared with the first quarter.
