Machinery Industry Third Quarter Report: Decline in Reverse Reversal of Construction Machinery
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In the third quarter, the decline in the industry's revenue was reversed, and the subdivided areas were more clearly differentiated. In the single quarter, the overall industry revenue was 189.2 billion yuan, a slight increase of 0.38% year-on-year, and the downward trend reversed (Q1 and Q2 decreased by 4.8% and 4.2% respectively); the net profit was 7 billion yuan, a year-on-year decrease of 7%, and the decline narrowed significantly ( Q1 and Q2 decreased by 14% and 26% respectively. Eight sub-sectors achieved positive revenue growth.
Benefiting from the rebound in demand, the profit levels in the first three quarters have improved. Although raw material prices rose, but benefited from the recovery in demand, the overall gross profit of the industry was 21.8%, an increase of 1.22 percentage points year-on-year; net profit was 3.5%, a year-on-year decrease of 0.67 percentage points, but the administrative expense ratio increased. The decline in net profit was mainly due to heavy machinery, while special equipment, construction machinery and basic components all achieved a positive increase in net margin of more than 1 percentage point in the first three quarters.
The single-quarter profitability in the third quarter has increased, reflecting the scale effect. The gross profit rate of 3Q was 21.6%, which was a year-on-year increase of 0.6 percentage points. During the period, the expense rate dropped slightly by 0.4 percentage points, and the net interest rate decreased by 0.29 percentage points year-on-year, with a slight contraction. The net profit rate of basic components increased by 5 percentage points.
There was no significant improvement in asset turnover. Inventories totaled 345.32 billion yuan, up 3.5% year-on-year, and inventory turnover days were 309.9 days, an increase of 72.9 days compared to the same period last year, and the inventory turnover rate was significantly reduced. The turnover rate of fixed assets increased by 12.6% year-on-year, but the overall efficiency of asset utilization was still declining, and corporate capital pressure was still relatively large.
In the third quarter, receivables grew rapidly, but cash flow improved.
Capital expenditures fell slightly by 7%, and capital expenditures for special equipment, basic components and elevators increased significantly.
Conclusion: In the first three quarters, the operating pressure of the industry remained large, but the weak recovery continued in the second quarter, slightly exceeding expectations. In the third quarter, the scale of single-season income, profitability, and business environment continued to improve. The boom in construction machinery and basic components was most evident. If this year is the peak of the start of large-scale projects, then the next two years should be the peak of investment. Construction machinery industry profit growth next year is a large probability, the fourth quarter can be more strategic; large iron and urban rail planning clear, orders peak in the Ming Gradually come later years, long-term optimistic. In addition, the fourth quarter of nuclear power equipment tender started, the proposed concern.