Securities Daily: Sany Heavy Industry dividends of 2.3 billion yuan are ex-dividend today, and the dividend financing ratio is 188% of the industry's top priority*

Source: Securities Daily Reporter: He Jun

Just when the outside world was full of doubts about the capital chain of Sany Heavy Industry, Sany Heavy Industry endorsed its "not bad money" with a dividend of 566123 billion yuan in the industry this year.

On August 8, Sany Heavy Industry's 2011 dividends were ex-rights and dividends, with 3 yuan in cash for every 10 shares, with a total of 2.278 billion yuan. This cash dividend is the 9th cash dividend since the listing of Sany Heavy Industry, and it exceeds the sum of the previous 8 dividends. In the past 9 years since its listing, Sany Heavy Industry has accumulated cash dividends of 3.734 billion yuan, compared with 1.99 billion yuan in the two financings, and the dividend financing ratio is as high as 188%.

A few days ago, Xiang Wenbo, president of Sany Heavy Industry, said in an interview that he felt very relieved when he thought of the return of Sany Heavy Industry to investors over the years. "We have been listed for 9 years, raised 1.99 billion yuan, paid dividends of 3.734 billion yuan, created a market value of 100 billion yuan, and created a top 500 company in the world by market capitalization. According to a report released by the Boston Consulting Group last year, between 2005 and 2009, the average return on shareholders of Sany Heavy Industry was 67.4%, ranking first in the world*, ranking 5656 among global construction machinery companies, and second among Chinese enterprises, second only to the asset-light Tencent. ”

"From the perspective of listed companies, due to the rapid growth of China's economy, enterprises usually have a strong investment impulse, therefore, in terms of profit distribution, they also tend to pay less dividends or even no dividends, and heavy financing and light dividends have become a common phenomenon in China's stock market. However, Sany Heavy Industry has achieved both fish and bear paws while growing rapidly, and its funds raised from the capital market are far lower than the scale of cash dividends, which is even in the construction machinery industry in recent years. Because of this, the investment value of Sany Heavy Industry has also been recognized by the market for a long time," said a researcher in the machinery industry who did not want to be named.

Dividend financing ratio up to 188%

August 8 was the ex-dividend date of Sany Heavy Industry, with a total cash distribution of 2.278 billion yuan. The cash dividend for the year exceeded the sum of the past nine years. In the past 9 years, Sany Heavy Industry has accumulated cash dividends of 3.734 billion yuan, 5.7 billion bonus shares, and 1.5 billion shares. Its cash dividend amount is synchronized with the growth rate of share capital, with cash dividends of 120 million yuan in 2003 and 2.278 billion yuan in 2011, with an average annual compound growth rate of 45%.

Since its listing, Sany Heavy Industry has raised funds from the capital market twice (the first IPO raised 934 million yuan, and the acquisition in 2007).Piling machinerynon-public issuance of shares of 1.056 billion yuan) totaled 1.99 billion yuan, much smaller than its cash dividend scale of 3.734 billion yuan. In other words, the funds raised by Sany Heavy Industry from the capital market have nearly doubled back to shareholders.

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

Behind the high dividend is the support of high growth. 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 has declined by nearly 20% this year, Sany still maintains good growth, and the net profit growth rate in the first quarter still ranks first in China's construction machinery industry.

"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 9 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. The researcher said.

Largest shareholder return in the world

Statistics show that among the three giants in the construction machinery industry, Sany Heavy Industry has paid dividends 9 times, with a cumulative cash dividend of 3.734 billion yuan; Zoomlion has paid dividends more times, up to 14 times, and has paid a cumulative dividend of 4.85 billion yuan in the past 12 years since its listing, which is 5661 yuan in the construction machinery industry; XCMG Machinery has paid dividends 10 times in the past 16 years, with a total of 1.019 billion yuan.

The ratio of cash dividends to raised funds is an important indicator to measure the company's "return and circle money", the proportion of Sany Heavy Industry is 188%, while the other two major construction machinery giants Zoomlion and XCMG Machinery are 26% and 10% respectively.

"The three major construction machinery giants have quite a good return to shareholders. From the point of view of the gold content of dividends, Sany Heavy Industry is higher than the other two. The above-mentioned researcher pointed out that Zoomlion's cumulative dividends amounted to 4.85 billion yuan, and the total amount of funds raised was 18.483 billion yuan (including 637 million yuan in 2000 A-share IPO, 5.572 billion yuan in 2010, and 12.274 billion yuan in H-shares and placement in 2010-2011), the dividend financing ratio was 26.25%, and the difference between cash dividends and financing was negative 13.633 billion yuan. As of 2010, XCMG Machinery has accumulated dividends of 1.047 billion yuan (the dividend plan for 2011 has not yet been announced), with a total of 10.424 billion yuan raised, a dividend financing ratio of 10.05%, and a negative difference between cash dividends and financing of 9.377 billion yuan. Sany Heavy Industry has accumulated dividends of 3.734 billion yuan, raised a total of 1.99 billion yuan, and the difference between cash dividends and financing is positive 17.44 yuan. In addition, based on the time of cumulative cash dividends to repay the initial IPO fundraising, it took Zoomlion 11 years and Sany 8 years.

In September 2011, the Boston Consulting Group released a list of shareholders in the global capital markets, showing that the top 10 companies in terms of shareholder returns are all in Asia, with Chinese companies accounting for 7 of them. The top 10 companies are Tencent, India's Jindal Steel & Power, Suning Electric, South Korean polysilicon manufacturer OCI, Sany Heavy Industry, Master Kong, Zoomlion, Kweichow Moutai, TBEA and Indonesian natural gas distribution company.

"From the identity of the two cities * 5656 to the present, Sany Heavy Industry's emphasis on shareholder returns is an important tradition of its corporate governance, and this tradition and confidence comes from the rapid growth of its Sany Heavy Industry." The researcher said.