Both inside and out.
It is not easy for construction machinery enterprises to make profits and grow.
At least in terms of 2023 results.
/// CONSTRUCTION MACHINERY
Text: Today's Construction Machinery
This article is about 3000 words and takes about 7 minutes to read
As of the end of April, the 20 major listed companies of construction machinery counted by this magazine have disclosed their 2023 results, and the overall profitability has improved compared with 2022.
Among them, 4 companies increased profits but did not increase revenue, and 2 leading enterprises, including XCMG Machinery and Sany Heavy Industry, saw a slight year-on-year decline in revenue growth, but it has reversed the trend of double decline in revenue and net profit in 2022. Specifically, there are 13 companies whose net profit increased year-on-year, and the number has also increased compared with the same period in 2022; 9 companies increased their revenue and net profit; 3 companies lost money, and 1 company increased revenue but did not increase profits.
Although the market will continue to bottom out in 2023, the ranking of listed construction machinery companies has not changed much. XCMG Machinery and Sany Heavy Industry maintain a leading position with relatively stable operating income and net profit, and the net profit of XCMG Machinery exceeds that of Sany Heavy Industry by about 18.829 billion yuan and 799 million yuan respectively. Zoomlion and Liugong Machinery both achieved a double increase in revenue and net profit, of which Zoomlion and Liugong Machinery increased by more than 4% year-on-year, and net profit increased by 52.04% and 44.80% year-on-year respectively. Sunward's net profit growth rate is the largest, and the net profit will turn losses into profits in 2023, with a year-on-year increase of 103.13%. Taiyuan Heavy Industry increased revenue but did not increase profits, with revenue increasing by 4.12% year-on-year and net profit falling by 14.35% year-on-year. Power Xinke (formerly Shangchai Co., Ltd.) will have a net profit loss of more than 2.4 billion yuan in 2023.
(2023 performance report of major domestic construction machinery listed companies, data source: annual report of enterprises)
01
The net profit of 13 companies is growing, and 8 are growing by more than 4%.
Will the front turn from defense to offense?
After two consecutive years of continuous bottoming out and pressure, there will be 13 companies that will achieve positive year-on-year growth in net profit in 2023, of which 8 companies will achieve a net profit growth rate of more than 4 percent, while in 2022, a total of 7 companies will achieve positive year-on-year net profit growth, and only 3 companies will achieve a growth rate of more than 4 percent. In the face of multiple difficulties and challenges in the market environment such as the continuous contraction of domestic sales in the industry and the slowdown in the year-on-year growth rate of exports, the adjustment strategy of enterprises has begun to gradually take effect.
Similarly, although the revenue growth rate of the four major leading companies will rise and fall differently in 2023, if the timeline is extended, the revenue growth trend will improve, and the net profit growth rate will all return to positive.
According to the report, the gross profit margin and operating net cash flow of the four companies also increased to varying degrees. In 2023, the gross profit margins of XCMG Machinery, Sany Heavy Industry, Zoomlion, and Liugong Machinery will be 22.38%, 27.72%, 19.91%, and 27.51%, respectively, with a year-on-year increase of 2.17%, 3, 70%, and 4, respectively. 12%、5.71%。 In 2023, XCMG's operating net cash flow will have the highest year-on-year growth rate of 125.59%, and Sany Heavy Industry's operating net cash flow will be the best of 5.708 billion yuan.
From 2011 to 2023, the operating income and year-on-year growth rate of the main four enterprises in the construction machinery industry
From 2011 to 2023, the net profit and year-on-year growth rate of the main four enterprises in the construction machinery industry
From the perspective of main business, Zoomlion's earthmoving machinery business revenue increased by 89.32% year-on-year, and Liugong Machinery's aerial machinery business revenue increased by 112% year-on-year. On the whole, the growth rate of earthmoving machinery and piling machinery business declined, and the business situation of lifting machinery and concrete machinery improved compared with the same period in 2022.
The main business composition of the top three enterprises in 2023
Specifically, in 2023, Sany Heavy Industry will achieve positive year-on-year revenue growth in addition to concrete machinery and lifting machinery, with a year-on-year increase of 1.55% and 2.6% respectively, and the operating income of excavation machinery, piling machinery and road machinery will decrease by 22.71%, 31.97% and 19.32% year-on-year respectively. Among them, the proportion of excavation machinery business decreased by 38.64%, a decrease of 7.14% compared with the proportion of the same period in 2022 (45.78%).
In 2023, XCMG Machinery will continue to dig deep into domestic segments and stock market opportunities, and the operating income of concrete machinery, aerial work machinery, and mining machinery will increase by 9.72%, 35.62%, and 14.17% year-on-year respectively, while the revenue of lifting machinery, earthmoving machinery, piling machinery, and road machinery will decrease by 11.20%, 4.56%, 55.48%, and 5.37% respectively. Among them, the business of lifting machinery and earthmoving machinery decreased by 2.61% and 0.9% respectively, accounting for 22.82% and 24.30% respectively.
In 2023, Zoomlion's main business of construction machinery will grow to varying degrees, and the operating income of concrete machinery, lifting machinery, earthmoving machinery, and aerial machinery will increase by 1.63%, 1.64%, 89.32%, and 24.16% year-on-year respectively. Among them, the rapid growth of earthmoving machinery is mainly due to Zoomlion's rapid completion of the product spectrum of super-large excavators, mini-excavators and small excavators to enhance product competitiveness.
In 2023, Liugong Machinery will vigorously develop strategic new businesses and growth businesses such as mining machinery, aerial machinery, agricultural machinery, and industrial vehicles, among which the high-altitude machinery business, as a growth point to vigorously promote all-round innovation and change, will achieve a year-on-year increase of 112% in annual sales revenue, of which 123% year-on-year in overseas.
It is worth mentioning that the gross profit margin of the main business of the four leading enterprises has increased slightly or slightly.
02
Most corporate profit growth still depends on going overseas
The demand for domestic construction machinery is gradually recovering, and enterprises will usher in a reshuffle if they go to sea or not go to sea.
In 2023, the cumulative export value of China's construction machinery will be 341.405 billion yuan, a year-on-year increase of 15.8%. Specifically, the gross profit margin of 16 companies in overseas markets is the lowest 23%, the highest is more than 40%, and the average gross profit margin is nearly 30%.
Among them, the revenue growth rate of 4 companies in overseas markets exceeded 6%, with Taiyuan Heavy Industry performing the best, with a year-on-year increase of 111.37% in overseas market revenue; Zoomlion had the best performance among the leading enterprises, with a year-on-year increase of 79.20% in revenue in overseas markets, and the revenue scale of Sany Heavy Industry's overseas markets was higher than that of the domestic market for the first time. Only 1 overseas market revenue growth rate of China Railway Construction Heavy Industry declined, down 31.73% year-on-year, and China Railway Construction Heavy Industry said that it was mainly due to the decrease in overseas equipment delivery and revenue during the reporting period.
The revenue of construction machinery listed companies in overseas markets in 2023
Overseas market demand is far from being met. In 2023, Sany Heavy Industry's overseas market will now achieve revenue of 43.258 billion yuan, a year-on-year increase of 18.28%, accounting for 58.44% of the total, surpassing the domestic market for the first time. XCMG's overseas market revenue increased by nearly 10 billion yuan, achieving revenue of 37.22 billion yuan, accounting for 40.09%. Zoomlion's overseas revenue increased by 79.2% year-on-year, accounting for 38.04%, and the market share of Saudi Arabia, Malaysia, Vietnam, Kenya and other markets increased rapidly through localized cultivation. Liugong Machinery's overseas market now achieves revenue of 11.462 billion yuan, a year-on-year increase of 41.18%, accounting for 41.65%, of which the overseas revenue of high-altitude machinery business and industrial vehicle business increased by 123% and 57% year-on-year respectively.
In 2023, the revenue of Zhejiang Dingli, Sunward, and Shantui Co., Ltd. from overseas markets will all exceed 50%, of which Zhejiang Dingli will account for the highest proportion, as high as 64.43%, of which the boom products in overseas markets will grow rapidly, and the sales revenue will increase by 141.28% year-on-year. Sunward achieved revenue of 4.107 billion yuan in overseas markets, a year-on-year increase of 27.66%, accounting for 56.80%, of which the revenue of skid steer loaders in overseas increased by 138% year-on-year. Shantui Co., Ltd. achieved overseas revenue of 5.878 billion yuan, a year-on-year increase of 33.73%, and the proportion of export revenue reached 55.77%. Taiyuan Heavy Industry Co., Ltd. increased its efforts to develop overseas markets and achieved a year-on-year increase of 111.37% in overseas revenue, of which crane products achieved zero breakthroughs in Brazil, Africa and North American markets.
A quick overview of the annual reports of listed companies in the construction machinery industry in 2023
XCMG Machinery
In 2023, XCMG Machinery will achieve operating income of 92.848 billion yuan, a year-on-year decrease of 1.03%, and net profit attributable to the parent company of 5.326 billion yuan, a year-on-year increase of 23.51%, of which the revenue contribution of strategic emerging industries will exceed 20%, and the revenue of new energy will double for two consecutive years, with a contribution of nearly 10%.
Among them, the export revenue reached 37.220 billion yuan, accounting for 40.09% of the revenue, a year-on-year increase of 33.70%.
Sany Heavy Industry
In 2023, Sany Heavy Industry will achieve a total operating income of 74.019 billion yuan, a year-on-year decrease of 8.44%; net profit attributable to shareholders of listed companies was 4.527 billion yuan, a year-on-year increase of 5.53%. overseas markets achieved revenue of 43.258 billion yuan, a year-on-year increase of 18.28%; It accounted for 60.48% of the main business income, an increase of 14.78 percentage points year-on-year.
In 2023, the revenue of electric products will be 3.146 billion yuan, and the revenue of hydrogen energy products will be 130 million yuan.
Zoomlion
During the reporting period, Zoomlion achieved operating income of 47.075 billion yuan, a year-on-year increase of 13.08%; net profit attributable to the parent company was 3.506 billion yuan, a year-on-year increase of 52.04%.
Among them, the revenue from overseas markets was 17.905 billion yuan, a year-on-year increase of 79.2%, and the proportion of overseas revenue further increased to 38.04%.
Liugong Machinery
In 2023, Liugong achieved operating income of about 27.519 billion yuan, an increase of 3.93% year-on-year; The net profit attributable to shareholders of the listed company was about 868 million yuan, an increase of 44.8% year-on-year.
Overseas operating income was 11.462 billion yuan, a year-on-year increase of 41.18%, accounting for 41.65% of the company's overall revenue.
Shantui shares
In 2023, the company will achieve operating income of 10.541 billion yuan, a year-on-year increase of 5.43%. The net profit attributable to shareholders of the listed company was 765 million yuan, a year-on-year increase of 21.16%.
Xiamen Engineering Co., Ltd
In 2023, the revenue will be 821 million yuan, a year-on-year decrease of 18.46%; The net profit loss attributable to the parent company was 218 million yuan, a year-on-year change from profit to loss.
Anhui Heli
In 2023, the operating income will be about 17.471 billion yuan, an increase of 10.76% year-on-year; The net profit attributable to shareholders of listed companies was about 1.278 billion yuan, an increase of 40.89% year-on-year.
From the perspective of product structure, the proportion of the company's electric new energy vehicles will increase from 36.06% in 2019 to 57.17% in 2023, which is 2.33 percentage points faster than the industry.
Doriki Heavy Industries
The company achieved operating income of 5.86 billion yuan, a year-on-year increase of 12.67%; The net profit attributable to the parent company was 615 million yuan, a year-on-year increase of 31.82%, and the net cash flow generated by operating activities was 277 million yuan, a year-on-year increase of more than 3.48 times.
Utong Heavy Industries
The company's revenue in 2023 will be 2.907 billion yuan, a year-on-year decrease of 18.92%; The net profit attributable to the parent company was 218 million yuan, a year-on-year decrease of 43.36%.
China Railway Construction Heavy Industry
The company's revenue in 2023 will be 10.027 billion yuan, a year-on-year decrease of 0.73%; The net profit attributable to the parent company was 1.593 billion yuan, a year-on-year decrease of 13.59%.
Taiyuan Heavy Industry
In 2023, the company will achieve a total operating income of 8.371 billion yuan, a year-on-year increase of 4.12%; The net profit attributable to the parent company was 185 million yuan, a year-on-year decrease of 14.35%.
In terms of products, in 2023, the company's main business revenue from train axles and wheelsets will be 2.505 billion yuan, a year-on-year increase of 40.98%, accounting for 29.93% of operating income; the revenue of excavation and coking equipment was 2.273 billion yuan, a year-on-year decrease of 3.58%, accounting for 27.15% of the operating income; The revenue of crane equipment was 1.557 billion yuan, a year-on-year decrease of 14.47%, accounting for 18.60% of the operating income.
Construction machinery
In 2023, the company will achieve operating income of 3.228 billion yuan, a year-on-year decrease of 16.98%, a net profit attributable to the parent company of -745 million yuan, a year-on-year increase of more than 15.70 times, and a net cash flow of 412 million yuan from operating activities, a year-on-year increase of 55.85%.
Sunward Intelligence
In 2023, the company will achieve a total operating income of 7.229 billion yuan, a year-on-year decrease of 1.00%; The net profit attributable to the parent company was 35.5834 million yuan, a year-on-year turnaround, the non-net profit loss was 141 million yuan, compared with a loss of 1.231 billion yuan in the same period last year, and the net cash flow from operating activities was -520 million yuan.
Weichai Power
In 2023, the company will achieve operating income of about 213.958 billion yuan, an increase of 22.15% year-on-year; The net profit attributable to shareholders of listed companies was about 9.014 billion yuan, an increase of 83.77% year-on-year.
Quanchai power
In 2023, the company will achieve operating income of 4.819 billion yuan, a year-on-year decrease of 2.37%, a net profit attributable to the parent company of 97.22 million yuan, a year-on-year decrease of 6.04%, and a net cash flow from operating activities of 120 million yuan, a year-on-year decrease of 69.25%.
Hengli Hydraulics
In 2023, the operating income will be about 8.985 billion yuan, an increase of 9.61% year-on-year; The net profit attributable to shareholders of listed companies was about 2.499 billion yuan, an increase of 6.66% year-on-year.
Hangcha Group
In 2023, the company will achieve operating income of 16.272 billion yuan, a year-on-year increase of 12.90%; The net profit attributable to the parent company was 1.72 billion yuan, a year-on-year increase of 74.23%.
Zhejiang Dingli
In 2023, the operating income will be about 6.312 billion yuan, an increase of 15.92% year-on-year; The net profit attributable to shareholders of listed companies was about 1.867 billion yuan, an increase of 48.51% year-on-year.
The main business income in overseas markets was 3.84 billion yuan, a year-on-year increase of 13.35%.
China Longgong
During the reporting period, the annual operating income was 10.52 billion yuan, a year-on-year decrease of 5.6%; The net profit attributable to the parent company was RMB650 million, a year-on-year increase of 61.2%.
The sales revenue in overseas markets increased by 20.1% year-on-year to RMB3.07 billion, and the proportion of sales revenue in overseas regions to total sales increased from 23.0% in 2022 to 29.2% in 2023.
Power New Branch
The company achieved operating income of 8.681 billion yuan, a year-on-year decrease of 12.57%, net profit attributable to the parent company of -2.463 billion yuan, a year-on-year increase of 52.81%, and a net cash flow of 283 million yuan from operating activities.
Zhuozhong construction machinery media organization
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