Construction Machinery (600984) Coverage Report for the First Time: Tower Crane Leasing Lead for Catering Building Rapid Expansion

Construction Machinery (600984) Coverage Report for the First Time: Tower Crane Leasing Lead for Catering Building Rapid Expansion

The report reads that prefabricated buildings promote the structural change of demand for tower cranes, the gap between large and medium-sized tower cranes is huge, and Pangyuan Leasing has inherited the rapid expansion of its parent company’s platform.

Investment points Pangyuan Leasing both volume and price rose, the boom continued to rise. Pangyuan Leasing is the largest tower crane leasing service provider in the country. The availability of tower crane equipment continues to be high. The tonnage available in January 2019 was 64.

1% per year, up by 3 last year.

Five average values, the ton-meter improved in February due to the impact of the Spring Festival. It is expected that the following consecutive Chinese New Year factors will be eliminated. The start of the peak season, the ton-meter replacement will help continue to stay high.The price index reached a record high of RMB 17,31, a 73% increase over the 17th year, and rental prices continued to rise.

Under the high prosperity of both volume and price, Pangyuan Leasing entered the period of performance harvest.

The rapid development of prefabricated buildings brings a gap in the supply of large and medium-sized tower cranes. With the vigorous promotion of national policies, tandem prefabricated buildings have entered a period of rapid development. According to the national “Thirteenth Five-Year Plan” plan, by 2020 and 2025, prefabricated buildings inThe proportion of newly-built buildings should reach 15% and 30% respectively. The structure of demand for tower cranes in prefabricated buildings has changed, and the demand for large and medium-sized tower cranes has increased. According to estimates, the demand for medium and large-sized tower cranes in 2025 is 7.

80,000 units, the gap between supply and demand reached 5.

80,000 units.

The concentration of the industry has further increased. Pangyuan’s strong and Hengqiang Pangyuan has ranked first in tower crane leasing for many years. The industry has accelerated integration in recent years. The demand for prefabricated buildings for medium and large tower cranes has raised high industry barriers, and adoption and technology have been gradually promoted.The brand and technology requirements continue to increase, and the market must be withdrawn from the budget and channel issues. The concentration of the industry has gradually improved, and Pangyuan ‘s footprint has decreased by 2%, far exceeding the sum of the second, third, and fourth.Layout of prefabricated buildings, backed by the platforms of listed companies, the scale of equipment continues to increase rapidly. At present, the number of tower cranes reached 4,500, which doubled in 2016, and the tonnage exceeded 1 million tons, ranking first in the world.

The parent company plans to increase the capital by 1.5 billion to continue to increase the size of medium and large-sized tower cranes. The market share of Pangyuan City continues to increase and enters a period of rapid development.

The unfavorable factors of Tiancheng Machinery and the parent company were eliminated, Tiancheng Machinery continued to decrease, the impairment of goodwill and bad debts of accounts receivable dragged down the company’s performance. At the end of the three-year performance bet, the performance compensation has been completed.

The internal synergy between the parent company and Pangyuan is strong, and orders are successively taken from Pangyuan to replace the controllable ones.

The negative bread of listed companies has been eliminated, and full support is given to the development of Pang Yuan, and performance growth can be expected.

Profit forecast and forecast The company is a leader in tower crane leasing. Benefiting from the rapid development of prefabricated buildings, it has entered a period of rapid development. The scale of equipment continues to expand rapidly. The company’s revenue from 2018 to 2020 is expected to be 25.

96, 33.

84, 43.

0.6 million yuan, an increase of 41 in ten years.

95%, 30.

34%, 27.

25%; net profit attributable to parent company is 1.

54、4.

08, 5.

31 ppm, an increase of 578 in ten 重庆耍耍网 years.

28%, 164.

34%, 30.

02%, the corresponding EPS is 0.

19, 0.

49, 0.

64 yuan, corresponding to PE is 36, 13, 10 times, it is estimated to be at a low level, given a “buy” rating.

Risk Factors The promotion of prefabricated buildings was lower than expected, and the value-added speed indicators of real estate and infrastructure construction.