Hengli Hydraulics (601100) Interim Report Review: Interim Report Performance Eye-catching Oil Cylinder + Pump Valve Pulling Performance Enhancement

Hengli Hydraulics (601100) Interim Report Review: Interim Report Performance Eye-catching Oil Cylinder + Pump Valve Pulling Performance Enhancement

Event: On August 27, 2019, the company released its semi-annual report for 2019, and the company achieved revenue of 27 from January to June 2019.

93 ppm, an increase of 29 in ten years.

05%, realizing net profit attributable to mother 6.

71 ppm, a 44-year increase of 44.

74%; net profit after deducting non-return to mother 6.

30 ppm, an increase of 49 in ten years.


The profitability of 2019H1 has been improved in an all-round way: it reports that the integrated company achieved revenue 27.

93 ppm, an increase of 29 in ten years.


Gross margin / net margin were 37.

03% / 24.

06%, an annual increase of 2.


59 points, the increase in gross profit margin was mainly due to the effect of scale and optimization of product structure, the increase in operating costs was less than the growth rate of sales revenue.

In a single quarter, the gross profit / net interest rate in Q2 2019 reached the highest since 2012, reaching 39 respectively.

9% / 28.


In terms of fee control, report periodical expenses of major companies2.

42 ppm, an increase of 14% per year, of which sales expenses / administrative expenses / financial expenses / research and development expenses are 0.


91 / -0.


17 ppm, short-term change -0.

22% / 14.

37% /-440.

09% / 46.

24%, the cost is 1.

73% /杭州夜网 3.

26% /-0.

51% / 4.

19%, a ten-year change of -0.

51 / -0.

42 / -0.


49 points.

The small decrease in sales expenses from the top to the bottom of the company’s import and export expenses; the increase in management expenses was due to the increase in the company’s income and the corresponding increase in employee compensation; affected by the increase in the US dollar exchange rate in the current period, the company’s financial costs fell sharplyIn terms of research and development costs, the company always adheres to driving innovation and continuously promotes research and development of new products, which has led to a significant increase in research and development costs.

The construction machinery industry is recovering, and high-end pumps and valves may become the growth point of performance: The main host manufacturing companies that replaced statistics in January-June 2019 sold a total of 137,207 classified excavation machinery products, a large increase.22%, the company leveraged the rapid growth of downstream excavator sales to achieve a steady increase in performance.

In the report summary, the subsidiary’s hydraulic technology seized the incremental growth of the market and doubled its revenue. 2019H1 hydraulic technology achieved revenue6.

52 ppm, an annual increase of 100%, with pump valve revenue reaching 5.

43 trillion, accounting for 83 of total revenue.

28%, net profit reached 1.

1.6 billion, a 200% increase in ten years.

The hydraulic technology in the report continues to maintain its high market share of small pump valves, and at the same time, the large and large pump valves have realized the full configuration of major OEMs, and the market share has gradually increased. The pump valve business is expected to become the company’s future performance growth point.

The cylinder business continued to develop, and the motor products were fully launched, and the company’s product line was gradually improved: the company reported and sold a total of excavator cylinders / non-standard cylinders for heavy equipment.


860,000, a year-on-year increase of 13% / 18%, to achieve revenue of 12.


US $ 3.3 billion, an annual increase of 25% / 8%. The largest share of non-standard cylinders is crane cylinders, which sold 5 in the first half of the year.

960,000, a year-on-year increase of 27%, to achieve income3.

200 million, an increase of 13% in ten years.

In the first half of the year, the company’s motor products were officially launched. The 6-50T class slewing motors for hydraulic excavators developed by the subsidiary hydraulic technology have been verified in batches at the main engine factory.

The comprehensive launch of the motor business completes the company’s product line and is expected to improve the company’s operating performance in the future.

Investment suggestion: It is expected that the company’s H1 net profit in 2019 will achieve high growth, actively expand overseas business, and increase research and development investment. According to our model calculations, the company’s revenue and gross profit margin are expected to increase. It is estimated that the net profit attributable to the mother in 2019-2021 will be 12.

310,000 yuan, 15.

2.4 billion, 17.

94 trillion, the diluted EPS were 1.

40 yuan, 1.

73 yuan, 2.

03 yuan, corresponding to PE diluted 21 times, 17 times, 14 times.

Risk warning: The demand of the construction machinery industry is less than expected, the hydraulic pump valve business is less than expected, the market for hydraulic motors is fiercely competitive, and the prices of raw materials such as steel are rising.