Analysis of Leading Enterprises in China's Construction Machinery Industry in 2022 - XCMG Machinery: Complete range of construction machinery products

Analysis of Leading Enterprises in China's Construction Machinery Industry in 2022 - XCMG Machinery: Complete range of construction machinery products

Release time: 2021-12-16 10:20

Major listed companies in the industry: XCMG (000425), Sany (600031), Zoomlion (000157), Liugong (000528), China Longgong (03339.HK), Railway Construction Heavy Industry (688425), Shantui Shares (000680), Sunward Intelligence (002097), XIAGONG (600815), Dingli (603338), etc.

The core data of this article: corporate revenue, gross profit margin, market share, etc.

1. Comprehensive comparison of leading enterprises in China's construction machinery industry

After years of development, the leading trend of the Chinese construction machinery industry is obvious. XCMG, Sany and Zoomlion are well-known leading enterprises in the construction machinery industry at home and abroad. In 2002, the three companies accounted for more than 33% of China's construction machinery market share, and more than 20% of the global construction machinery industry market share, showing obvious competitive advantages in the industry. Among them, XCMG is the company with the most extensive product distribution in the construction machinery industry among the three leading companies. In 2020, XCMG's construction machinery product types will reach 16 (Yellow Table counts a total of 17 construction machinery product types). At the same time, XCMG is also the company with the longest development history and the highest international market share among the three leading companies. The overall comparison of the three companies is as follows:

2. XCMG: Construction Machinery Business Layout History

XCMG Machinery is the earliest enterprise in the development of Chinese construction machinery. The predecessor of XCMG Group, Huaxing Iron Works, was born as early as 1943. The development of the enterprise has accompanied the entire process of New China from its establishment to its prosperity. Today, XCMG has basically formed a full product layout in the construction machinery industry and is one of the main leaders in the industry.

XCMG Machinery is mainly engaged in the research and development, manufacturing, sales and service of hoisting machinery, scraper machinery, compaction machinery, road machinery, pile machinery, fire extinguishing machinery, sanitation machinery and other construction machinery and spare parts. Among the company's products, the market share of wheel cranes ranks first in the world, truck-mounted cranes, crawler cranes, road rollers, graders, paver, horizontal directional drilling rig, rotary drilling rig, lifting fire truck, bridge inspection vehicle, aerial work vehicle The market share of many other core products ranks first in China.

From the perspective of revenue scale and proportion, XCMG machinery products have the largest revenue scale, with a revenue of 26.489 billion yuan in 2020, accounting for 35% of the company's overall revenue, followed by construction machinery spare parts and other products. Realized revenue of 17.656 billion yuan, accounting for 23.87%.

--Product production and sales: The production and sales situation is generally good

From the perspective of the company's production and sales model, XCMG makes an annual production and sales plan for conventional products according to the annual budget target, and adjusts , determines the monthly purchase and production and sales plan based on the market sales situation. For some large-tonnage products, procurement and production are arranged according to the quantity of the sales order. In terms of product sales channels, the company adopts direct sales and distribution methods according to the market characteristics of each product.

From the perspective of the company's production and sales volume, the company's production and sales volume will increase in 2020, and the overall production and sales volume increase will be greater than the increase in inventory, indicating that the company's production and sales situation in 2020 is better.

--Overseas layout: perfect overseas marketing network

At this stage, XCMG has established a complete marketing network in 64 countries in Asia-Pacific, Central Asia, Africa, West Asia and North Africa, Europe and Oceania, with 18 spare parts centers and 24 offices. Nearly 400 service locations and more than 120 spare parts outlets. In addition, the company has 300 overseas distributors, 40 offices, and more than 140 service and spare parts centers. Its marketing network covers more than 180 countries and regions around the world. It has established branches in key countries such as Brazil and Russia to carry out direct business, to build a channel network .

Excluding the impact of the epidemic in 2020, the proportion of XCMG's overseas revenue from 2015 to 2019 remained above 10%. In 2020, due to the impact of the epidemic, the proportion of XCMG's overseas revenue decreased to 8.26%, achieving a revenue scale of 6.109 billion yuan.

- R&D investment: continuous growth

In recent years, XCMG has invested heavily in the field of scientific and technological research and development. In 2020, the company implemented 220 technological development projects in the annual budget plan, and successively launched 175 highly competitive new products, 97 of which were the first in China. In terms of R&D personnel, from 2019 to 2020, the growth rate of the number of R&D personnel and the proportion of R&D personnel in XCMG machinery exceeded 8% and 3% respectively; in terms of R&D investment, from 2019 to 2020, the company's R&D investment and R&D expenses accounted for the proportion of revenue. The growth rate of the proportion was 52.75% and 22.17% respectively.

4. XCMG : operating performance of construction machinery business

--Overall performance: revenue scale increased, gross profit decreased

From the perspective of company revenue, XCMG's construction machinery revenue from 2015 to 2020 showed an increasing trend year by year. In 2020, the company's construction machinery revenue reached nearly 74 billion yuan, but the company's gross profit margin declined from 2015 to 2020. The trend indicates that the profitability of the company's main products has declined.

--Product performance: Aerial work platform machinery and road machinery have strong profitability

From the perspective of product gross profit margin, in 2020, XCMG's aerial work platform machinery and road machinery have strong profitability, with a gross profit margin level of over 25%, followed by hoisting machinery and piling machinery, whose gross profit margin level will exceed 21% in 2020.

--Overseas performance: overseas profit is generally higher than the company's average profit

From the company's bulletin, from 2015 to 2020, the average gross profit margin of the company's construction machinery industry and the gross profit margin of construction machinery in overseas markets showed a downward trend, but overall, the profitability of the overseas construction machinery market was generally better than the company's average level.

5. XCMG : Construction Machinery Business Development Plan

In recent years, with the tightening of environmental protection policies, most construction machinery manufacturers have deployed in the field of new energy, and XCMG has also made a corresponding layout in the field of environmental protection. On December 3, 2021, XCMG released the latest news that XCMG heavy trucks have invested 2.3 billion, it will gradually introduce three major industries of new energy vehicle equipment manufacturing, hydrogen fuel engine manufacturing and intelligent mining industry, and gradually expand to the closed loop of the new energy industry. The rest of the latest layouts are as follows:

The above data refer to the "Analysis Report on Market Demand Forecast and Investment Strategic Planning of China's Construction Machinery Manufacturing Industry" by the Qianzhan Industry Research Institute. At the same time, the Qianzhan Industry Research Institute also provides industrial big data, industrial research, industrial chain consulting, industrial map, industrial planning, and park planning. , industrial investment attraction, IPO fundraising feasibility study, prospectus writing and other solutions.

GRH is the Excellent Supplier of XCMG.