Securities Daily: Real gold and real silver "not bad money" Sany Heavy Industry sent 2.2 billion in cash

Source: Securities Daily Reporter: Li Jianjun

On the evening of August 1, Sany Heavy Industry (600031, SH) issued the "2011 Profit Distribution Implementation Announcement", the company's 2011 cash dividend of 3 yuan per 10 shares, a total of 2.278 billion yuan. This is the ninth cash dividend paid by Sany Heavy Industry in the nine years since it was listed on the Shanghai Stock Exchange in 2003.

In the past nine years, Sany Heavy Industry has accumulated cash dividends of 3.734 billion yuan, 5.7 billion bonus shares, and 1.5 billion shares. As the boss of the construction machinery industry, Sany Heavy Industry's cash dividends this year are more than the sum of the past eight years, which means "not bad money".

　2011 annual dividend Chinese private enterprises*5656

According to wind information, Sany Heavy Industry's cash dividend of 2.278 billion yuan, while 96.7% of the Shanghai and Shenzhen listed companies achieved net profit in 2011 were lower than this data.

According to wind information, from 2003 to 2011, Sany Heavy Industry's dividend per share was 0.71 yuan, ranking first in China's construction machinery industry. At the same time, according to the 2011 dividend ranking of more than 2,600 listed companies in Shanghai and Shenzhen, Sany Heavy Industry ranked 28th among all listed companies and *5,656 among all Chinese private enterprises.

In the capital market, Sany Heavy Industry has always been known for its high rate of return, its cash dividend amount and equity growth rate synchronization, cash dividend of 120 million yuan in 2003, cash dividend of 2.278 billion yuan in 2011, with an average annual compound growth rate of 45%.

Since the establishment of the company, Sany has only raised funds from the capital market twice (including the initial IPO raising 934 million yuan, and the acquisition in 2007).Piling machinerynon-public issuance of shares of 1.056 billion yuan), a total of 1.99 billion yuan, far less than its cash dividend scale of 3.734 billion. In other words, the funds raised by the company from the capital markets have been returned to shareholders in the form of cash exponentially.

Two years ago, the Boston Consulting Group conducted a survey of more than 700 listed companies in 14 industries around the world and found that from 2005 to 2009, the average return on shareholders of Sany Heavy Industry was 67.4%, ranking first in the world* and ranking *5656 among global construction machinery companies. * New statistics show that from 2005 to 2011, the average annual compound growth rate of Sany Heavy Industry's shareholder return was as high as 88%.

In fact, the proportion of cash dividends in the capital market to raise funds is an important indicator to measure whether the enterprise is "only circle money and not return", the proportion of Sany Heavy Industry is 188%, and the other two major construction machinery giants Zoomlion and XCMG Machinery are 26% and 10% respectively.

The value is undervalued, and the pullback is the time to buy

In 2003, Sany Heavy Industry's main revenue was only 2.1 billion yuan, and at the end of 2011, the main revenue was as high as 50.7 billion yuan, with an average annual compound growth rate of more than 60%.

Although the construction machinery industry as a whole fell by nearly 20% this year, compared with other enterprises in the industry, Sany still maintained a good growth, and the net profit growth in the first quarter of 2012 still ranked first in China's construction machinery industry, far outperforming the market.

In the field of concrete machinery, this year, Sany Heavy Industry continued to expand its advantage with competitors, and acquired the German "Elephant" at the beginning of the year, which changed the world industry competition pattern in one fell swoop; In the field of excavators, Sany Heavy Industry's products have a relative market share of about 18% in China, and have firmly occupied the *5656 position since surpassing Japan's Komatsu last year. In addition, from January to June this year, the export of all products of Sany Heavy Industry increased by 130% year-on-year, and the business growth of German elephant after the merger and acquisition also exceeded 10%.

Guojin Securities Dong Yaguang said that the construction machinery leading enterprises represented by Sany Heavy Industry, in a highly competitive growth environment tempered the management ability of the show, its product line is complete and even more than overseas competitors, with the establishment of global research and development, production, sales and service system, its domestic and global market share will continue to increase, its catch-up target will be Caterpillar, Komatsu and other international giants.

Analysis of the company's announcement and stock price chart shows that Sany Heavy Tools has the characteristics of typical high transfer of shares, and its dividend plan has strong short-term and medium-term investment value after the announcement. In the nine years since its listing, the stock price of Sany Heavy Industry has shown a steady upward trend in fine-tuning, and the stock price of *5661 has increased by 49 times compared with the IPO issue price, bringing investors a double income of cash dividends and capital gains.

"Sany Heavy Industry has a global layout and steady growth, and the value of leading companies in the improvement of global competitive advantages is underestimated, and the callback is the time to buy." Liu Rong, an analyst at China Merchants Securities, said.