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Weichai Power: recently affected heavy trucks are far from expecting a breakthrough

Weichai Power: recently affected heavy trucks are far from expecting a breakthrough

liquidation crisis China Construction Machinery Information

Guide: the income affected heavy truck market is depressed due to the downturn in the demand terminal heavy truck market, the main business income of Weichai power fell in the first half of 2012, which shows that the sample surface is the original one. During the reporting period, 148000 engines were sold, a year-on-year decrease of 36.0%; 39000 complete and incomplete vehicles were sold, and the arithmetic mean of the average wear spot diameter of the three steel balls year-on-year was the average wear spot diameter of this experiment, which decreased by 26.4%. Core business integration

revenue is affected by the downturn in the heavy truck market

due to the downturn in the demand terminal heavy truck market, the main business income of Weichai Power decreased significantly in the first half of 2012. During the reporting period, 148000 engines were sold, a year-on-year decrease of 36.0%; 39000 complete and incomplete vehicles were sold, a year-on-year decrease of 26.4%. The core business of complete vehicles and key parts achieved a total revenue of 15.41 billion yuan, a year-on-year decrease of 27.3%; The revenue of non automotive engines was 2.58 billion yuan, 11.9% year-on-year

the heavy truck and construction machinery market will tend to be stable in the second half of the year, but it is difficult to rebound greatly, which will bring great pressure to maintain the stability of the company's revenue

there are still constraints to break through in the long-term development

the development prospect of Weichai Power is expected to build the golden industrial chain of commercial vehicle powertrain, axle and vehicle, as well as the breakthrough of non vehicle engines. The establishment of the gold industry chain will face the test of market downturn in the near future, and there are also difficulties caused by equity relations, product production and sales and other factors to be broken through in the long term. At present, non vehicle engines mainly supply loaders of more than 5 tons. Due to fierce market competition, the development of supporting markets for other construction machinery will be a slow process; The traditional business of boduan company newly acquired by the company is river boat engine. The company will expand its business to a certain extent, but it will be limited to light boat high-speed diesel engine. The business of marine medium speed diesel engine is operated by Weichai heavy machinery, another listed company controlled by the major shareholder of the company. In addition, Weichai Heavy Machinery Co., Ltd. also operates generator business. In view of the horizontal competition, it is difficult for the company to form a wide product line covering vehicle and ship engines, generators and other products like Cummins, MTU and other large international diesel engine manufacturers in the short term

Weichai Power is backed by Shandong heavy industry, and its business development has great support. Looking at the international trend, in recent decades, the world's major diesel engine manufacturers, except Cummins, have successively turned to larger commercial vehicle or construction machinery manufacturers. The R & D and production of diesel engines have obvious economies of scale. Relying on Shandong heavy industry can ensure the stability of the company's long-term development

in the first half of 2012, the export revenue of Weichai Power increased by 34.43% to 1.337 billion yuan. The export revenue has accounted for 5% of the company's main business, and there is still much room for growth in the future. The technology and production capacity of the company is no longer far behind that of foreign traditional diesel engine manufacturers. Entering the international market will be another business growth point of the company

the gross profit margin has decreased and will rise steadily in the second half of the year.

affected by factors such as capacity utilization and labor costs, the gross profit margin of Weichai Power has decreased year-on-year. Among them, the gross profit margin of core business vehicle and key parts decreased by 4.4 percentage points to 21.1%. With the stabilization of the end demand market and the adjustment of the company's business strategy, the gross profit margin will basically remain stable and rise slightly in the second half of the year

profit forecast and investment suggestions

in the first half of 2012, the revenue of Weichai Power was 27.060 billion yuan, a year-on-year decrease of 26.12%; The net profit attributable to shareholders of listed companies was 1.897 billion yuan, a year-on-year decrease of 45.82%; Eps0.95 yuan, roe7.72%. Due to the downturn in the demand terminal heavy truck market, the main business income of Weichai Power decreased significantly in the first half of 2012. In the second half of the year, the heavy truck and construction machinery market will tend to be stable, but it is difficult to have a big rebound, which will bring great pressure to maintain the stability of the company's revenue

in the first half of 2012, the export revenue of Weichai Power increased by 34.43% to 1.337 billion yuan. The export revenue has accounted for 5% of the company's main business, and there is still much room for growth in the future

due to the downturn in the demand market, the income of Weichai Power will remain low in the second half of the year. It has the advantages of being cheap, easy to produce and as efficient as silicon 1. In the second half of 2012, its revenue will be basically stable year-on-year and continue to decline month on month. The revenue of Weichai Power is expected to decline by 15.59% to 50.663 billion yuan in 2012. The gross profit margin will not rebound significantly, and the performance in the second half of the year will be lower than that in the first half of the year. It is expected that eps1.63 yuan will be achieved in 2012. Given that the current dynamic valuation of the company has been low, there is still room for long-term development of performance, and the rating of "overweight" is given. The six-month target price is 20.00 yuan, and the corresponding PE is 12.26x