Yangtze River Business Daily News ● Yangtze River Business Daily reporter Wang Jing
Accelerating the sea, Liugong (000528. SZ) sales growth, market share continued to increase, and the performance was once again promising.
On the evening of October 11, Liugong released a performance forecast for the first three quarters of 2024, with an estimated net profit of 1.24 billion yuan to 1.4 billion yuan, an increase of 50%-70% over 830 million yuan in the same period last year; The net profit after deduction is expected to be between 1.13 billion yuan and 1.29 billion yuan, an increase of 81% to 107% from 620 million yuan in the same period last year.
Liugong said that in the face of opportunities and challenges in the domestic and foreign markets, the company actively adopted flexible response strategies, and continued to increase the reform and innovation of various key tasks, the company's overall operational efficiency was significantly improved, the sales growth rate in the international and domestic markets continued to outperform the industry, the market share continued to increase, and the key indicators of the three major financial statements were significantly improved, achieving a substantial increase in the company's operating performance in the first three quarters.
In the secondary market, Liugong's share price has also maintained a growth trend in the past year.
In November 2023, the company's share price was as low as 5.95 yuan per share, and it has basically maintained growth since then. After a recent round of sharp rises, as of the close of trading on October 11, 2024, Liugong's share price was 12.4 yuan per share, an increase of 108.4% in less than a year.
In addition, northbound funds also continued to increase their positions. In the first quarter of 2024, Hong Kong Securities Clearing Co., Ltd. increased its position by 35.5923 million shares, and in the second quarter, it increased its position by 17.0704 million shares, and as of the end of June, it held 103 million shares, with a shareholding ratio of 5.21%, ranking the second largest shareholder of Liugong.
Net profit grew by more than 50% for five consecutive quarters
As a leader in the construction machinery industry, Liugong is also affected by the cyclical impact of the industry.
It is understood that because the construction machinery industry is closely related to fixed asset investment such as infrastructure real estate investment and manufacturing investment, it has a strong cyclicality, and with the arrival of the downward cycle of the industry, Liugong has been deeply affected in the past few years.
In 2021 and 2022, Liugong will achieve operating income of 28.701 billion yuan and 26.48 billion yuan respectively, a year-on-year increase of 10.48% and -7.74%; net profit was 997 million yuan and 599 million yuan, a year-on-year decrease of 30.76% and 39.9%; The non-net profit was 777 million yuan and 474 million yuan, a year-on-year decrease of 29.6% and 39.03%.
In 2023, Liugong's performance will recover rapidly. In that year, the company achieved operating income of 27.519 billion yuan, a year-on-year increase of 3.93%; The net profit and non-net profit were 868 million yuan and 569 million yuan respectively, a year-on-year increase of 44.8% and 20.04%.
A few days ago, Liugong released a performance forecast for the first three quarters of 2024, with an estimated net profit of 1.24 billion yuan to 1.4 billion yuan, an increase of 50% to 70% over 830 million yuan in the same period last year; The net profit after deduction is expected to be between 1.13 billion yuan and 1.29 billion yuan, an increase of 81% to 107% from 620 million yuan in the same period last year.
Liugong said that during the reporting period, the domestic construction machinery was affected by the industry cycle and national policies, and the demand for earthmoving machinery sub-industries showed a bottoming out trend, and the demand for other construction machinery sub-industries remained sluggish; The international construction machinery market demand is significantly differentiated, and the demand of most developing countries and regions is growing rapidly, but the demand of developed economies in Europe and the United States and individual developing countries and regions has shown a downward trend during the year, resulting in a decline in the overall market demand for overseas construction machinery.
In the face of opportunities and challenges in the domestic and foreign markets, the company actively adopted flexible response strategies during the reporting period in accordance with the "14th Five·-Year Plan" strategic plan, focusing on the three core tasks of "profit growth, business growth and capacity growth", and continued to increase the reform and innovation of various key tasks. The company's operating performance in the first three quarters has increased significantly.
In fact, since the third quarter of 2023, Liugong's net profit has grown rapidly, exceeding 50% for five consecutive quarters.
In the third and fourth quarters of 2023, Liugong's revenue will be 6.078 billion yuan and 6.405 billion yuan respectively, a year-on-year decrease of 3.01% and 0.64%; The net profit was 212 million yuan and 41.51 million yuan, a year-on-year increase of 99.2% and 212.59%.
In the first and second quarters of 2024, Liugong achieved revenue of 7.939 billion yuan and 8.121 billion yuan respectively, a year-on-year increase of 1.88% and 12.11%; The net profit was 498 million yuan and 486 million yuan, a year-on-year increase of 58.03% and 62.48%.
Overall, in the first half of 2024, the company will achieve operating income of 16.06 billion yuan, a year-on-year increase of 6.81%; net profit was 984 million yuan, a year-on-year increase of 60.2%. According to the performance forecast disclosed this time, Liugong's net profit in the third quarter is expected to be 290 million yuan to 330 million yuan, a year-on-year increase of 182% to 224%.
Continue to cultivate overseas markets
According to the data, since its establishment in 1958, Liugong has been deeply involved in the construction machinery market for 66 years and is a landmark equipment manufacturing enterprise.
In 1966, Liugong successfully developed China's first wheel loader (Z435 type), and in 1988, it independently developed the ZL50C loader, creating a legend of more than 150,000 units of single model loader sold worldwide, which is the largest single model sales product in the history of construction machinery in the world. In 1992, the company milestone launched the first generation of WY40 hydraulic excavator, representing the highest level of domestic excavator technology at that time, and laying a solid foundation for China's national excavator brand to break the monopoly of foreign capital.
At present, Liugong has a rich product territory, is one of the manufacturers of construction machinery products diversification, complete categories, covering loaders, excavators, road machinery, mining machinery-based earthwork machinery, truck cranes, tower cranes, lifts, high-altitude machinery as the main construction lifting machinery equipment, as well as industrial vehicles, agricultural machinery, construction prestressed products; It has accessories sales, remanufacturing and second-hand mobile phones, operating leases, financial leasing, new technologies and other supporting services; It has comprehensive solutions for multiple scenarios such as mining, highway construction, railway tunnels, commercial concrete cement, port logistics, agriculture, forestry and animal husbandry, steel processing, and river construction.
In 2024, the market share of many of the company's products will continue to rise. The semi-annual report took over, and the company's overseas market share of loaders directly increased by 2 percentage points. The sales volume of electric loaders increased by 159% year-on-year, the market share maintained a leading position in the industry, and the domestic sales of excavators increased by 29.5% year-on-year, the growth rate was significantly better than the industry level, and the market share increased by 3 percentage points.
In recent years, LiuGong has also continued to explore overseas markets.
As one of the earliest enterprises in the domestic industry to carry out international business, after more than 20 years of overseas development and operation, LiuGong has now entered the stage of deep internationalization, the company has set up four overseas manufacturing bases in India, Brazil, Argentina and Indonesia, developed local supply chains, achieved localized production, and set up overseas R&D institutions in India, Europe, United States and other countries.
According to Liugong, in the first half of 2024, the company's overseas operating income will be 7.712 billion yuan, a year-on-year increase of 18.82%, accounting for 48.02% of the company's overall revenue, and the sales growth rate in overseas markets is 21.8 percentage points better than the industry level, of which the overseas sales of backhoe loaders in particular increased by more than 200% year-on-year.
In the secondary market, Liugong's share price has also maintained a growth trend in the past year.
In November 2023, the company's share price was as low as 5.95 yuan per share, and it has basically maintained growth since then. After a recent round of sharp rises, as of the close of trading on October 11, 2024, Liugong's share price was 12.4 yuan per share, an increase of 108.4% in less than a year.
In addition, northbound funds also continued to increase their positions. In the first quarter of 2024, Hong Kong Securities Clearing Co., Ltd. increased its position by 35.5923 million shares, and in the second quarter, it increased its position by 17.0704 million shares, and as of the end of June, it held 103 million shares, with a shareholding ratio of 5.21%, ranking the second largest shareholder of Liugong.