Longgong is expected to maintain a 50% growth rate

2022-07-23
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Longgong is expected to maintain a growth rate of 50% in 2011. Introduction: at present, Longgong has developed into one of the largest construction machinery manufacturers in the mainland. Its main business is the R & D and manufacturing of complete machine products and their parts, such as wheel loaders, vibratory rollers, excavators, forklifts, etc. The group performed well last year. During the period, the turnover and net profit increased by about 74.2% and 1. 7% respectively

at present, China Longgong has developed into one of the largest construction machinery manufacturers in the mainland. Its main business is the R & D and manufacturing of complete machine products and their parts, such as wheel loaders, vibratory rollers, excavators, forklifts, etc. The group had excellent performance last year. During the period, the turnover and net profit increased by about 74.2% and 1.2 times, respectively, to 12.02 billion yuan and 1.766 billion yuan (the same below). The gross profit margin was 28.52%, an increase of 5.07% over 2009. This is mainly due to the increase in the price of wheel loaders last year, the increase in the proportion of excavators with high gross profit margin, and the expansion of excavator production lines

Longgong's wheel loaders are in a leading position in the mainland market and have a large pricing power. It is very easy for unqualified thermal insulation materials to enter the market and rise legally by shifting the cost of steel through price increase. Last year, its wheel loader business accounted for nearly 70% of the turnover, and the sales volume accounted for less than. However, due to the fact that 18.5% of the market has not been investigated, its market share ranks first. The excavator business accounted for about 1% of the turnover. PolyOne's quarterly earnings per share exceeded investors' expectations. 5 the existing market pattern will be reshuffled, and the sales revenue will increase by 152% year-on-year. As the excavator is a variety with high gross profit margin, it is expected to maintain a growth rate of 50% in 2011, and its proportion in the total revenue will be further improved

in the past years, the sales of construction machinery in the mainland continued to grow. According to the prediction of China Construction Machinery Industry Association, the annual growth rate of the mainland construction machinery market will reach 17% in the next five years. It is expected that the profits of enterprises in the machinery industry will still maintain double-digit growth this year. After the share prices of Zoomlion (01157) and other companies in the same industry rose sharply, the current valuation of Longgong's share price is not high, only 12 times P/E, which is more attractive than that of the same industry. It is estimated that the company's earnings per share in 2011 will reach HK $0.55 (the same below), and the compound growth rate of earnings in the next three years will reach more than 20%, with a price earnings ratio of 13 times, a target price of 7.1 yuan and a stop loss price of 5 yuan

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