China Securities Journal|Sany Heavy Industry Co., Ltd. will build a global brand made in China, and the growth in the next three years is expected

Since the beginning of this year, the recovery momentum of construction machinery has been strong. As a leader in the construction machinery industry, Sany Heavy Industry is facing development opportunities. In an exclusive interview with a reporter from China Securities Journal, Xiang Wenbo, president of the company, said that he would further increase the research and investment in intelligent manufacturing, and realize the reengineering and development of the enterprise through transformation and upgrading. In the future, Sany will stick to the main business of construction machinery, deeply cultivate digitalization, internationalization, diversification and other fields, and build a world brand made in China.
Intelligence helps industrial upgrading
As one of the first batch of construction machinery enterprises selected for China's intelligent manufacturing pilot demonstration project, Sany Heavy Industry took the lead in completing the transformation of intelligent manufacturing and became a benchmark for the transformation and upgrading of China's manufacturing enterprises.
The digital construction system of Sany SY215 excavator has been developed recently, and the operator only needs to look at the 10-inch touch screen in the cab to understand the bucket coordinates and digging and filling volume in real time, and control the action of the excavator according to the information.
Promoting the deep integration of the Internet, big data, artificial intelligence and the real economy, cultivating new growth points and forming new momentum are the requirements put forward in the report of the 19th National Congress of the Communist Party of China. Since 2009, Sany has introduced the concept of comprehensive digitalization. After more than five years of development, Sany has formed a systematic digital factory planning solution and products. At present, Sany is committed to providing solutions for machining and welding digital workshops, actively promoting the application of workshop Internet of Things systems, and developing 3D production monitoring solutions suitable for discrete manufacturing. Sany digital factory technology has been applied in more than 10 business units of the group.
Chen Jing, director of the President Office of Sany Heavy Industry, told the China Securities Journal that in the intelligent factory of Sany Changsha, the accessories can automatically run to each production station through the automated production line, and the assembly line has only a small number of employees, which is very efficient. 65 workers can realize the simultaneous operation of 140 robots; Each production line of the workshop can be mixed with more than 30 different types of machinery and equipment at the same time, which can support an output value of 10 billion yuan, so that a pump truck can be rolled off the assembly line in one hour and an excavator in a few minutes.
Through independent research and development, Sany Group has developed a full range of core components for sensing, control, display and drive used in construction machinery and equipment, forming an industrial chain with completely independent intellectual property rights.
Relying on R&D and innovation, Sany's product quality and brand influence are increasing day by day. At present, Sany's concrete machine has achieved the market * 5656 at home and abroad, which can be called the world's * 5656 brand. In the competition with international brands, Sany has shown self-confidence, taking excavators as an example, in the domestic market, compared with Carter, Komatsu and other old excavator products, the price of similar products of Sany is comparable.
Pre-tax profit is expected to return to high levels
More than 80 excavators and concrete were sold in one dayMixer trucksMore than 20 units - since the beginning of this year, Sany's main types of construction machinery sales data are particularly eye-catching.
In the name of buying an excavator, the reporter called the seller of Sany excavator. A sales staff in Chongqing told reporters that the sales of Sany excavators this year are very good, and the company still has leasing business last year, but there is no more this year. "It's not enough to sell, how can there be rent." The salesperson said that more than 100 second-hand excavators from last year were also sold out this year. If you buy it now, you will have to wait for ten and a half days for the particularly popular model in short supply. A salesperson in Hebei also told reporters that the sales situation here this year is particularly good, even in the traditional off-season this summer, the sales are not light.
In the context of the general recovery of the construction machinery industry, Sany's performance is also outstanding. In November this year, Sany excavator sales were 3,099 units, with a market share of 22.42%; From January to November this year, a total of 27,746 excavators were sold, a year-on-year increase of 120.05%. Sany excavator has been ranked first in sales in the domestic market for seven consecutive years.
In the first three quarters of this year, Sany achieved a net profit attributable to shareholders of listed companies of 1.8 billion yuan, a year-on-year increase of 932.6%; The operating income was 28.16 billion yuan, a year-on-year increase of 70.8%. Of particular concern is the fact that risks are being cleared. The company's net cash flow from operating activities in the first three quarters was 6.88 billion yuan. This data exceeds the company's history of 2010, the year of better operating cash flow, when the net operating cash flow was 6.749 billion yuan. In addition, Sany Heavy Industry has reduced its long-term and short-term borrowings by nearly 10 billion yuan in the first three quarters, and the total long-term and short-term liabilities are only 8.587 billion yuan.
Sany's executives are generally optimistic about the future growth of the construction machinery industry, believing that the industry will maintain a relatively stable growth.
Chen Jing said that now Sany is operating healthier, more profitable, and has a stronger ability to seize external opportunities, and the growth is expected in the next three years, and the pre-tax profit is expected to return to the high point of the previous few years.
Zhang Kejun, general manager of Sany Hunan Automobile Company, told reporters that in the first half of the year alone, the branch sold about 5,000 mixer trucks, and the benefits were very good. For the market in the second half of the year, Zhang Kejun is still confident and is expected to achieve a "small target" of 3.5 billion yuan in revenue.
Historical financial data show that in 2011, Sany's total profit was as high as 10.792 billion yuan.
Transformation Helps "Enterprise Reengineering"
Despite the current strong growth of the construction machinery industry, Xiang Wenbo said that Sany will not take the old road of greatly expanding production capacity.
"I don't think the high growth will last forever, the market has reached a new stage." Xiang Wenbo pointed out that "the future of the construction machinery industry is still worth looking forward to, and the difficult period of the construction machinery industry has passed." Taking advantage of the trend, Sany will usher in a round of growth with 'gold content'. ”
In the last round of construction machinery outbreak period, all host manufacturers are vigorously expanding. Then the midwinter of the industry suddenly came, and the round of industry trough that began in 2012 lasted for five years, and some companies were eliminated. Industry insiders said that in 2011, there were more than 100 excavator companies, and now there are only more than 20. Compared to 2011, the industry size in 2016 was only 30% of that in 2011.
Because of the previous radical expansion and the trough of the industry, Sany has also paid a huge price. The company's total profit plummeted from over $10 billion in 2011 to $120 million in 2015.
The current risk is cleared, so that Sany is relieved. Chen Jing said, "Now our risk is very small, and the inventory is basically digested, including those in the hands of agents." ”
In the industry adjustment period in the past few years, Sany has carried out solid transformation.
Xiang Wenbo said that Sany adheres to the transformation of risk control, and pays more attention to market risks and business quality than ever before. This is also the main reason why the company's net profit in the first three quarters increased by 932% year-on-year, and cash flow increased by 238% year-on-year.
Chen Jing said, "Our transformation is mainly internal industrial upgrading, management upgrading, etc., and will not give up the main business of construction machinery." ”
In terms of risk control, since 2012, Sany has comprehensively adjusted the policy and greatly increased the down payment ratio of construction machinery, with an average down payment of 50% this year, and the customer credit work has been solid.
In terms of cost control, the three expense ratios decreased by more than 50% compared to 2011.
At the same time, the development of overseas markets has achieved remarkable results. Xiang Wenbo said that in the past few years, Sany's overseas sales have grown by more than 25% annually, and overseas sales account for more than 35%.
In the future, 40%-50% of the company's overseas business can be expected. Even in the high-end market in the United States, Sany's excavator sales are very good, and it has a strong brand position and a firm foothold. Along the "Belt and Road", the company's business has grown rapidly. Sany's factory in India has annual sales of more than one billion yuan, and has achieved localized production.
Xiang Wenbo said that after several years of adjustment, Sany's industry position has been continuously strengthened and its market share has been increasing. Since the third quarter of 2016, Sany's sales of excavators, cranes, piling machinery and concrete machinery have increased significantly. New business and internationalization have brought new profit growth points. While sticking to the main business of construction machinery, Sany has also entered the fields of new energy, housing industrialization and finance and insurance, and has developed new products such as military industry, fire protection, environmental protection, and transportation (heavy trucks).
"We will adhere to the industrial transformation in the direction of related industries, continue to make in-depth efforts in military industry, fire protection, construction industrialization, Internet finance and other equipment manufacturing-related business fields, and become a leader in these fields." Xiang Wenbo said.