Four trillion investment will gradually warm the construction machinery industry

As a listed company of construction machinery under the SASAC of Guangxi Zhuang Autonomous Region, Liugong has become the only company in the top four listed companies whose profits have fallen.

The annual report disclosed by Liugong yesterday showed that the company's total operating revenue for 2011 was 17.878 billion yuan, up 16.35% over the same period of last year; the net profit attributable to shareholders of listed companies was 1.321 billion yuan, down 14.41% from the same period of last year.

It is worth noting that according to the annual reports of listed and listed construction machinery companies that have been announced and will be announced, the profit of listed companies including Sany Heavy Industry and Xugong Machinery, including other three major construction machinery, has increased significantly.

Profits Conversely Slump The listed companies of construction machinery experienced a general decline in profits in the fourth quarter of last year, but Liugong experienced the fastest decline.

Liu Gong said in the annual report that last year China's construction machinery industry continued to decline from the sharp increase in the first quarter to the following three quarters, and it turned upwards and declining trend throughout the year.

In response, Liu Hualin, a representative of Liugong Securities, told reporters that the company's profit decline in 2011 was mainly caused by the loader business. Huang Hualin said that at present, the loader business accounts for more than half of the company’s main business revenue. From the beginning of last year to the end of last year, due to the price increase of the rubber industry, the tire cost of the loader increased by about 60%. Last year, the price of steel also rose by 20% to 30%. The loader is a very consumable machine.

This is also a problem faced by several other listed companies of construction machinery. However, Sany Heavy Industry expects the company's net profit attributable to owners of the parent company to increase by 50% to 60% year-on-year from 8.4 billion to 8.96 billion yuan. Xugong Machinery also estimates that net profit attributable to shareholders of listed companies increased by 15.12% over the same period last year to 3.378 billion yuan.

Zoomlion, which has announced its annual report, realized operating revenue of about 46.323 billion yuan last year, an increase of 43.89% year-on-year, and a net profit attributable to the parent company of about 8.066 billion yuan, a year-on-year increase of 72.88%.

In response, Huang Hualin explained that XCMG is mainly a crane and has a large share in the domestic market. Therefore, it has the pricing power, and steel prices have little effect on it. The product structure of XCMG, Sany Heavy Industry and Zoomlion It is very different from Liugong.

According to him, driven by 4 trillion yuan of investment, the performance in the first few quarters of last year was good, but after the fourth quarter, the situation turned sharply.

Guotai Junan analyst Lu Juan believes that Liugong's profit decline is mainly due to a drop in gross profit margin, of which, the gross profit margin of earth-moving machinery fell by 3 percentage points, mainly because the loader procurement costs did not control the good gross margin fell by about 4 percentage points; other engineering machinery The interest rate fell by 10.1 percentage points, mainly because the development of truck cranes did not reach expectations.

Is the mechanism not flexible enough?

As a state-owned enterprise, Liugong entered the construction machinery industry far earlier than the private enterprise Sany Heavy Industry, but the development speed is far lower than Sany Heavy Industry.

Regarding Liugong’s profit decline, in the gap between the 2011 annual TOP 50 activities of China Construction Machinery held yesterday, another large-scale state-owned construction machinery management accepted an interview with this newspaper that this has a lot to do with the system. Flexibility is far inferior to private enterprises.

“The most obvious is investment decision, because of the special status of state-owned enterprises. For example, my company is controlled by the SASAC of the Guangxi Zhuang Autonomous Region. If I want to invest in other provinces, it is difficult to reach the will of the Guangxi Zhuang Autonomous Region, so it is difficult to obtain Approved, said the high-level state-owned construction machinery company.

In this regard, a senior Liugong Group told this newspaper that this is indeed a problem faced by local state-owned enterprises and investment opportunities sometimes flicker.

On January 21 this year, Lianxin Asset Management Co., Ltd. acquired 31% of the world's first brand of concrete machinery, the German Putzmeister Holding Co., Ltd.

Sany Heavy Industry revealed that Zoomlion did contact Putzmeister first, but the speed of Sany Heavy Industry was very fast and it was quickly talked about. Zoomlion first hoped to get the government's " Road." It is this mechanism that has made Zoomlion lose its opportunity.

When the market is good, state-owned enterprises and private enterprises are making money, but once the market declines, the competitiveness of state-owned enterprises may decline even faster.

Analyst Wu Hua believes that Liugong took a relatively cautious production plan and sales strategy in the industry, resulting in a slower quarter-on-year growth in operating income and a profitability improvement. Quarter by quarter, year-on-year, year-on-year, profit growth was much lower than operating income growth.