Hengli Hydraulics (601100): Q4 performance resumes rapid growth and is optimistic about long-term growth of hydraulic faucets

Hengli Hydraulics (601100): Q4 performance resumes rapid growth and is optimistic about long-term growth of hydraulic faucets

Key points of the report Description Hengli Hydraulics released three quarterly reports: revenue 38.

34 ppm, an increase of 21 in ten years.

32%; net profit attributable to mother 9.

17 trillion, with an increase of 27.


Among them, Q3 single quarter revenue reached 10.

41 trillion, the same increase of 4.

53%, net profit attributable to mother 2.

4.6 billion, down slightly by 3.


  Event comment The temporary reduction in sales of excavator cylinders has led to Q3 revenue growth. It is expected that Q4 results are expected to resume rapid growth.

In Q3, the company’s revenue 南京夜网 growth has improved in the single quarter. Mainly due to the negative growth rate of excavator sales in May, the OEM’s component procurement tends to be cautious, resulting in the company’s improvement in excavator cylinder production from May to July.Rate, which affects the company’s Q3 sales revenue.

However, with the continuous increase in the growth rate of excavator sales, the company’s excavator cylinder production line began to grow at full capacity in August and began to return to growth. In September-October, due to the excavator sales season and the OEM’s stocking next year, the excavator cylinder rowProduction maintained rapid growth.

Considering that the company’s revenue recognition lags about one month, the combined company’s pump valves continue to increase volume, and the growth of non-standard oil cylinders is stable. It is expected that Q4 performance will promote faster recovery.

  Q3’s short-term profitability did not change its long-term growth trend, and its strong cash flow performance underscored its excellent operating quality.

Mainly due to factors of scale effect, Q3’s sales gross profit margin decreased by 4 from the previous quarter.

64pct to 35.


With the recovery of Q4 excavator cylinder sales growth and rapid volume expansion of pump and valve products, the scale effect has prompted the company’s gross profit margin to gradually rise.

At the same time, the company’s cash flow performance was strong, and the amount of cash flow from operating activities in the first three quarters reached 11.

73 ppm, an increase of 215 in ten years.

80%, highlighting the company’s stable operation and strong bargaining power in the industrial chain.

  New customers and product development continue to make breakthroughs, optimistic about the company’s long-term growth capabilities.

The company’s recent customers and product development continue to make breakthroughs: 1) small digging pump valves break through domestic OEM customers, start supporting foreign brands, and continue to promote market share for a long time; 2) rapid increase in motor capacity, in the field of excavators and aerial work platformsAchieve batch application; 3) Continue to increase the volume of pump and valve business of Zhongda, increase customer acceptance, and increase the proportion of high-margin products; 4) Invest in an Indian subsidiary to enter overseas markets.

In addition, the company’s non-standard pump and valve product application areas continue to expand. In general, the company’s pump and valve market share will continue to increase in the future. Motors, non-standard pumps and other new products will gradually contribute incremental, new product expansion and downstream cross-domain expansionHelp the company grow long-term.

  It is expected that the company’s net profit attributable to its parent from 2019 to 2021 will be 12 respectively.

42, 15.

42, 17.

1.5 billion yuan, the EPS is 1.

41, 1.

75, 1.

94 yuan / share, corresponding to PE is 28 times, 22 times, 20 times, continue to recommend, give “buy” rating.

Risk reminders: 1) Significant increase in infrastructure and land growth; 2) The company’s capacity release is less than expected; 3) China-US trade talks progress is less than expected; 4) Raw material prices increase.