Roaring lion in Zoomlion industry

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Zoomlion: roaring lion in the industry. 2006 was the roaring year of the lion. In this year, Zoomlion's export of construction machinery products grew rapidly. Zoomlion Heavy Industry Co., Ltd. was established in 1992, and has experienced 14 years of development

Zoomlion (000157) has an English name of "Zoomlion", which means "roaring lion" in Chinese. 2006 was the roaring year of the lion. In this year, Zoomlion's export of construction machinery products grew rapidly

Zoomlion 1. Introduction to bio based high molecular materials was established in 1992. After 14 years of development, the company now has total assets of more than 4billion yuan, annual sales revenue of nearly 4billion yuan, and more than 6000 employees. It has entered the global engineering machinery 5, not only the top 0 in general physical property experiments. The company's leading products have a large market share, and some products are in a monopoly position

according to the 2006 Interim Report of Zoomlion, in the first half of the year, the company achieved a main business income of 2.336 billion yuan, a year-on-year increase of 37%; The main business profit was 579million yuan, a year-on-year increase of 40%; Net Bayer said that it gave priority to IPO listing materials, with a profit of 255million yuan, an increase of 53.33%. In 2006, the construction machinery industry grew rapidly, and the company's products were in short supply, which accelerated the process of running in the new marketing system with the market. In the first half of the year, the sales growth rate of the company's concrete pump truck reached 64%, higher than the industry growth rate, and the market share increased by 5.7 percentage points over 2005. The export of concrete machinery products increased by 196.11% over the same period last year. The company has also increased the investment and sales of environmental sanitation machinery and tower crane, among which the current market share of environmental sanitation machinery is as high as 60%

Zoomlion has set its sights on overseas markets, actively participated in international market competition, and steadily improved its export capacity. It is estimated that the export amount of products will account for 7% ~ 8% of the company's sales revenue in 2006, and is expected to reach 15% in 2007 and 40% in 2010

the market share of the company's products is among the highest and has a high reputation in China. At present, the company has ten series and more than 100 varieties of construction machinery products, and the market network of its enterprises has formed a superposition, which has built the most complete domestic construction machinery market network system. The R & D investment of the enterprise has accounted for more than 5% of the annual sales revenue, reaching a maximum of 7%, which truly reflects the positive interaction between scientific research supporting industry and industry feeding scientific research. Thanks to its excellent R & D team, Zoomlion's technology development capability has gradually approached that of its international counterparts, making it easy to connect with international well-known brands

since 2006, due to capacity constraints, the company's crane business has been in short supply. In order to solve the capacity bottleneck, Zoomlion is building a new crane plant, and the expansion project of quantang Industrial Park is expected to be completed by the end of 2007. By then, the crane capacity will be doubled. It is predicted that in the future, its annual sales revenue of crane business will reach 4.3 billion yuan, the capacity bottleneck will disappear, and the company's export capacity will be further enhanced

in addition, a large number of land reserves will bring about 100million yuan of huge investment income to the company, which will be shown in the performance in 2007, when the earnings per share will increase by about 0.2 yuan

analyst comments

Zoomlion is the only listed company in the construction machinery industry with the background of shareholders of scientific research institutes. Since 2003, the company has formed seven product platforms including concrete machinery, hoisting machinery and sanitation machinery through mergers and acquisitions. The year 2006 was a new starting point for Zoomlion. After the restructuring of major shareholders, the completion of indirect MBO, split share structure reform and process reengineering of the joint stock company, the company's businesses entered a sound development track. In 2006, the growth of domestic large-scale infrastructure investment became the engine driving the demand for construction machinery. The main business income and net profit of Zoomlion in the first three quarters increased by 40% and 57% respectively

the capacity bottleneck of truck cranes will be solved in 2007. After the expansion project of quantang Industrial Park is put into operation, the production scale of 3500 truck cranes and 250 crawler cranes per year will be formed, which is twice the current production scale. It is estimated that Zoomlion's earnings per share in 2006 and 2007 will be 0.92 yuan and 1.22 yuan respectively


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