Institutional differences behind the dazzling perf

2022-09-23
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Sany Heavy Industry: institutional differences behind dazzling performance

Sany Heavy Industry: institutional differences behind dazzling performance

China Construction machinery information

Guide: the market closed on November 23, and sany () closed at 20 yuan. On October 27, the share price of Sany Heavy Industry stood above 19 yuan for the first time after the share reform, closing at 19.12 yuan, but the trend of standing above 19 yuan lasted only three trading days. After the share reform, Ren made five consecutive deliveries

the market closed on November 23, and Sany Heavy Industry () closed at 20 yuan

on October 27, the share price of Sany Heavy Industry stood above 19 yuan for the first time after the share reform, closing at 19.12 yuan, but the trend of standing above 19 yuan lasted only three trading days

the closing price of more than 19 yuan for five consecutive trading days after the share reform is one of the two conditions for the major shareholder Sany group to reduce its holdings, and the other condition is that the major shareholder's equity is locked up for 24 months

Sany Heavy Industry once followed the market down to about 11 yuan in early August this year, and then began to rise all the way. On September 28, its share price was once closed at the limit. Since then, the rise has accelerated, with the highest ever rising to 19.50 yuan per share. Behind the sharp rise is the sharp increase in its performance in the third quarter

according to the third quarterly report released by SANY on October 24, Sany achieved a main business income of 3.331 billion yuan in October, an increase of 76.03% year-on-year; The main business profit was 1.183 billion yuan, an increase of 79.94% year-on-year; The net profit was 414 million yuan, a year-on-year increase of 100.85%. In the announcement, Sany also predicted that the net profit in 2006 would increase by more than 100% over the same period last year

however, after the disclosure of the quarterly report of the sharp rise in the third quarter, its share price fell below 19 yuan per share

although the quarterly report is bright, institutional differences are also intensifying

the top ten circulating shareholders with the quarterly report showed that the two funds under Shanghai Investment Morgan increased their holdings significantly in the third quarter, and the new fund Nanfang No. 2 also entered its top ten circulating shareholders, in addition to QFII. However, at the same time, ICBC Credit Suisse Core Value Fund reduced its holdings by 1983100 shares, and China Ping An insurance and the national social security fund 109 portfolio also held 5.9992 million shares and 5.2702 million shares respectively at the time of the second quarter, respectively, ranking the seventh and tenth largest shareholders, but by the third quarter, the holdings of the bottom ten circulating shareholders had decreased to 4.5849 million shares, At the same time, Ping An insurance of China and the 109 portfolio of national social security fund are not among the top ten circulating shareholders

the shadow of macro-control still exists

as Sany Heavy Industry, which is mainly engaged in concrete machinery, macro-control has a more direct impact on it than other industries. This has become the most frequently mentioned point of view when the fund evaluates it. Some funds even said that based on macroeconomic judgment, Sany Heavy Industry had been excluded from the preliminary stock selection, and there was no in-depth analysis of it

the scene in 2004 will not be forgotten by many employees of Sany Heavy Industry

since 2001, the change of the overall market environment has prompted the whole construction machinery industry to enter the fast lane of development. Beijing's successful bid for the Olympic Games, the South-to-North Water Diversion Project, the revitalization of the northeast and a series of related events have become the basic factors supporting the boom of the construction machinery industry

and the policy is also good, The Ministry of Construction issued the qualification grade standard for general contracting enterprises of highway engineering construction in 2001, which stipulates that "as well as the industrialization project of domestic special metal materials brought by Tianjin Gangyan Hyde Technology Co., Ltd., a subordinate enterprise of China Steel Research Technology Group (hereinafter referred to as China Steel Research), many on-site judges have paid attention to more than 4 pump trucks, and more than 2 pump trucks are required for Enterprises above level 2". In addition, in 2001, the State Economic and Trade Commission also promulgated the "actively develop ready mixed concrete" through core processing according to the above deviation

according to insiders, from 2001 to 2004, the domestic construction machinery industry experienced four years of rapid growth, and even data estimates that the average annual growth rate from 2002 to 2003 was more than 60%, much higher than the potential demand growth. In the face of the high prosperity of the industry, Sany Heavy Industry prepared to recruit about 3000 new people at the beginning of 2004, and later actually recruited more than 1000 people from the talent market and colleges and universities, but macro-control came unexpectedly, Soon these new recruits were cut down a lot

zhaoxiangzhang, deputy general manager of Sany Heavy Industry, interpreted this incident as a normal personnel adjustment of the enterprise. However, it can be seen from the public information that Sany Heavy Industry has been directly impacted

when Sany Heavy Industry was listed in 2003, it was the period of the highest macro-economy. After raising funds, the company made a lot of investment, However, "the macroeconomic regulation and control in 2004 made the company face many difficulties, including the decline of demand and the increase of capital pressure. The company adjusted its business strategy, comprehensively evaluated its business, adjusted its main business objectives to the expansion and strengthening of its original main business, and strengthened the concrete machinery, especially the concrete pump truck and trailer pump products, which are the main sources of the company's income and profits." Sany Heavy Industry said

relevant information shows that when Sany Heavy Industry was listed, it raised a total of 899.89 million yuan, which is expected to be invested in 14 projects. After the strategic adjustment, three of the major projects have been changed: the production and construction project of large displacement mud pump, the production and construction project of pipe crane and the full hydraulic intelligent truck crane project have been abandoned, and the total amount of funds raised for the transformation is 293.62 million yuan, accounting for more than 30% of the total amount raised

where does performance growth come from

although there is no sign of relaxation of macro-control, the whole machinery industry has shown signs of recovery since the beginning of 2006

an analysis report of the national development and Reform Commission pointed out that "investors' enthusiasm for heavy industry investment continues to rise", resulting in "strong demand"; And "except for a few products affected by the international market price, there is no large gap in the supply of coal, electricity and raw materials" and other factors have further improved the production and operation environment, and the two factors have promoted the recovery of the industry prosperity

the above report points out that in the first half of this year, the total output value of construction machinery industry increased by 32.9% year-on-year, and the growth rate changed from negative growth in the same period last year to positive growth, with an increase of 33.4 percentage points; Among them, the shoveling and transportation machinery increased by 23.5%, and the concrete machinery increased by 25.6%

the main business of Sany Heavy Industry is mainly concentrated in concrete machinery. Its third quarterly report shows that concrete machinery is the main source of Sany's main revenue, accounting for 68.7% of its main revenue, and the gross profit margin is also the highest among all products of Sany, reaching 41.26%

insiders said that the concrete machinery in the general concept refers to "one station and three vehicles", namely concrete mixing station, bulk concrete transportation, concrete mixing truck and concrete pumping truck

among them, the technical content of concrete mixing station, bulk concrete truck and concrete mixing truck is not high, and the competition is becoming increasingly fierce

due to the high technical content, the gross profit rate of pump truck is also high, and also due to the high technical content, the competition pattern among its manufacturers is basically determined. Therefore, Sany Heavy Industry and its local competitor Zoomlion have taken pump trucks as their main varieties

however, the analysis article from the building materials industry branch of the China Council for the promotion of international trade pointed out that the slow growth of pump trucks in the first half of this year and the high prosperity of the concrete machinery industry are mainly "because the commencement of several high-speed railway projects has driven the demand for mixing plants and concrete mixing trucks."

the pump truck that contributes the most to Sany's profits has not seen rapid growth

Cheng Hua, general manager of Sany pumping marketing company, told the media at the beginning of this year that during the "Eleventh Five Year Plan" period, the national economic development will continue to implement macro-control policies, and the market demand growth of construction machinery is expected to develop from quantity to quality and efficiency. At the same time, the inclination of the national macro policy to the central and western regions, the rapid growth of the market demand for concrete machinery has the trend of transferring from developed regions to sub developed and underdeveloped regions, and the overall demand is steadily rising

according to the insiders, at present, China's pump truck market is still in the growth period, but the growth rate begins to slow down. For example, in some developed regions such as Beijing and Shanghai, the number of pump trucks has been relatively large, and the market demand tends to be saturated

I learned in the interview that do you dare to live in the core product pump truck? Uncertainty about the future growth of the business has also become the main reason why some funds say they are not optimistic about Sany

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