Construction Machinery (600984): Tower crane leasing continues to be high

Event: The company’s first three quarters of revenue22.

8.8 billion, previously +47.

07%, net profit attributable to mother 3.

8.2 billion, previously +227.

89%, of which single Q3 income 8.

8.9 billion, previously +40.

04%, net profit attributable to mother 1.

9.4 billion, an increase of 238 every year.


Opinion: The performance is in line with the forecast of developing countries. Under the background of the continued prosperity of the tower crane leasing industry, the company follows the development trend of the industry, optimizes the proportion of equipment structure, and accelerates the business development of overseas markets., To further consolidate the leading rank, raise the profit forecast, and give a “strong recommendation” rating.

The boom of the tower crane leasing industry continued, and the company’s performance continued to grow rapidly.

The company’s first three quarters of revenue22.

8.8 billion, previously +47.

07%, net profit attributable to mother 3.

8.2 billion, previously +227.


After completion, the company will follow the national PC industry trend, optimize equipment structure, increase the number of large and medium-sized tower cranes and reduce the proportion of small tower cranes; instead, use overseas markets to digest existing equipment and other methods to seize structurally and increase market share.

According to the company’s forecast, the procurement of leased equipment in January-September 2019 increased by about 74% compared with the same period last year.

At the same time, leasing prices have increased compared to the same period last year, and both volume and price have risen. Therefore, rental income from construction machinery has increased by about 50%, achieving rapid growth.

The scale effect complements the increase in rent, the company’s gross profit margin expands rapidly, and its profitability continues to increase.

In the first three quarters of 2019, the company’s gross profit margin was 39.

91%, an increase of 8.

12pct, from the single quarter of this year, the Q1 / Q2 / Q3 gross profit margins are 28.

63%, 41.

96%, 44.

87%, the gross profit margin improved quarter by quarter, especially in the third quarter of this year, the gross profit margin hit a new quarterly high.

We judged that the scale benefited from the company’s continuous purchase of new tower cranes, the scale of tower crane leasing expanded, the scale effect was obvious, and the replacement, the rental price of tower crane leasing market increased. Under the overlapping of two factors, the gross profit margin increased rapidly.
Against the background of rising gross profit margins, the company strengthened its expense control. In the first three quarters of 2019, the three rates plus the R & D expense rate combined.

87%, falling by 2 every year.

18pct, achieving a net profit of 16.

68%, an increase of 9 a year.

19pct, profitability is further enhanced.

The large-ton meter assembled tower crane equipment has been increased, and the faucet has been further consolidated.

① The market structure of tower crane leasing is scattered, with only 3 leading companies.

About 5%.

Tower crane leasing industry is a special high-risk industry with high barriers to entry. At present, the domestic market is relatively fragmented. As the industry leader, the company only accounts for 3.

About 5% is the sum of the market share of 2-30 companies in the industry.
② The company will increase the size of large-tonne tower cranes to consolidate the top and bottom of the faucet.
Large-scale tower cranes are of great value and difficult to manage in safety, which brings challenges to the purchase of leasers, especially small and medium-sized leasers. Large capital leasers with rich management experience will have inherent advantages when capital strength is overcome.

The company intends to raise 1.5 billion US dollars plus large-tonnage assembled tower 淡水桑拿网 crane equipment through non-public issuance of stocks. In the long term, it will help Pangyuan Leasing to consolidate leading enterprises and continuously improve profitability. At present, the company’s application for non-public issuance of A sharesIt has been approved and is awaiting the formal approval document of the CSRC.

We believe that tower crane leasing, as a special high-risk heavy asset service industry, places high requirements on the safety management experience (including equipment, capital, personnel), asset scale, and personnel training of the lessor. The company is expected to be strong in the industry competitionTo Hengqiang, the leader is further consolidated.

Investment suggestion: We expect the company’s net profit for 2019-2021 to be 5, respectively.

49, 8.

32, 10.

86 trillion, the corresponding EPS is 0.

66, 1.

01, 1.

31 yuan, corresponding to 15 for PE.

65, 10.

33, 7.


Give the company a “strong recommendation” investment rating.

Risk reminder: The real estate development investment quota exceeds expectations, the prefabricated construction industry is less than expected, and the performance of Shaanxi Construction Machinery Headquarters and its subsidiary Tiancheng continues to decline.