The hottest XCMG technology divested its loss maki

XCMG technology divested the loss heavy truck business to improve profitability

XCMG technology divested the loss heavy truck business to improve profitability

China Construction machinery information

Guide: Event: the company announced that it would transfer its 60% equity of Nanjing XCMG Automobile Manufacturing Co., Ltd. (hereinafter referred to as XCMG automobile) to XCMG Co., Ltd., with a transaction price of 121.8022 million yuan, and quit the heavy truck business. This equity transfer is good for XCMG: through this equity transfer, the company will still be at a loss

Event: the company announced that it would transfer 60% of the equity of Nanjing XCMG Automobile Manufacturing Co., Ltd. (hereinafter referred to as XCMG automobile) to XCMG Co., Ltd. at a transaction price of 121.8022 million yuan, and quit the heavy truck business

this equity transfer is good for XCMG: through this equity transfer, the company divested the heavy truck business, which is still in a state of loss and difficult to turn around in the short term, to XCMG Co., Ltd., which is conducive to enhancing the profitability of the company; It is conducive to using the limited strength of the major shareholder XCMG to cultivate the heavy truck business with good growth but high investment

after entering the heavy truck business, the development was lower than expected, and it was difficult to make up losses in the short term: in 2008, the company entered the heavy truck business by acquiring 60% of the equity of Nanjing Chunlan Automobile Manufacturing Co., Ltd. (later renamed XCMG automobile) made of La2O3 toughened MoSi2 composites, hoping to give play to the synergy between XCMG and the heavy truck business in chassis, parts and components, but did not expect to show results. The company expects that XCMG's actual loss in 2009 will expand to 70million yuan, contributing -5 cents to EPS in 2009, and the company expects that it will be difficult for the heavy truck business to turn around in the short term

decide to divest the heavy truck business: in view of XCMG's weak competitiveness, existing production and technical level in the heavy truck industry, it is estimated that if XCMG wants to strengthen the heavy truck business, it will need to invest 100 million yuan in the next years. In order to improve the competitive advantage of the main business of existing construction machinery, the company needs to invest about 8billion yuan in the past two years, and is unable to meet the investment demand of heavy trucks. In contrast, XCMG has strong investment ability to cultivate and develop heavy trucks. Therefore, the company decided to transfer the heavy truck business to XCMG Co., Ltd. and temporarily withdraw from the business

profit forecast and investment suggestions: this equity will not affect the performance in 2009, but will improve the performance in 2010 and improve the growth of the company. It is estimated that the annual EPS of the company will be 2.00 yuan, 2.53 yuan and 3.14 yuan respectively. According to the company's additional issuance plan, assuming that the base date of additional issuance pricing is the announcement date of the plan, the full issue price at 9:00 a.m. on October 11, 2015 will not be less than 30.8 yuan/share, and the annual EPS of the company will be diluted to 1.73 yuan and 2.00 yuan at most The steel bar mechanical connection deformation meter is 18.71 yuan, 2.71 yuan developed and produced by China Academy of Building Sciences. Maintain the target price of 45 yuan and the overweight rating of the company