Q2 revenue and profit fell compared with the same period last year. In the first half of the year, the epidemic situation in many places in China was repeated, and the start-up rate of projects in areas such as infrastructure and real estate was relatively low, which was a drag on the performance of the industry and companies. 22Q2 achieved revenue of 11.288 billion yuan, down 51.76% from the same period last year, an increase of 12.74% from the previous year, and a net profit of 809 million yuan from the previous year, down 66.75% from the same period last year and 10.69% from the previous year. 22Q2's overall gross profit margin was 21.41%, down 1.84pct from the same period last year, increasing 1.34pct from the previous year, and the overall net profit margin was 7.29%, down 3.37pct from the same period last year and 2.06pct from the previous year.
The product position is stable and the potential business has made a breakthrough. (1) lifting appliances: revenue reached 9.819 billion yuan, down 56.70% from the same period last year, and gross profit margin was 19.19%, down 6.59pct from the same period last year. Sales of all-ground cranes ranked first in the industry, while sales of construction lifting appliances steadily ranked first in the world. (2) concrete machinery: the revenue was 4.702 billion yuan, down 59.02% from the same period last year, and the gross profit margin was 20.98%, which was down 3.96pct from the same period last year. The market share of long-arm pumps, truck-mounted pumps and mixing stations still ranked first in the industry, while the market share of mixers increased to the second in the industry. (3) Earth-moving machinery: revenue 1.476 billion yuan, down 26.34%, gross profit 20.26%, increased 2.05pct, domestic excavation sales rose to the fifth in the industry; (4) revenue of agricultural machinery reached 1.095 billion yuan, down 31.93%, gross profit margin 6.29%, down 6.74pct. (5) aerial machinery: H1 domestic market share increased to the first in the industry.
Overseas markets continue to grow rapidly. With the continuous promotion of the company's localization strategy in overseas markets, 2022H1 achieved operating revenue of 3.89 billion yuan in overseas markets, an increase of 40.5% over the same period last year, and revenue in overseas markets accounted for 18.2%, much higher than 8.6% in 2021. In the first half of this year, the company accelerated its global layout, and its products have covered 71 countries and regions.
The industry recovers weakly, and the company's profit is expected to improve: affected by the epidemic and other factors, the company's 22H1 revenue and profits decline, and its market position remains in the lead. According to the statistics of the industry association, the growth rate of excavator sales in July has changed from negative to positive, and we think the company's 22H2 is also expected to recover. And with the decline in raw material prices, we believe that the company's profitability is also expected to stabilize and repair. Taking into account the drag on revenue in the first half of the year, we have lowered the company's 22-year revenue and gross profit forecast for 2022-2024, and the estimated net profit for 2022-2024 will be RMB 3.89 trillion (the original forecast is RMB 73,010 million). Comparable to the company's 22-year average valuation of 12.54xPE, we maintain a 20% premium to the company, corresponding to 22-year PE15 times, the target price of 6.75 yuan, maintain the buy rating.
Risk hint
Investment in infrastructure real estate has declined, raw material prices have risen, industry competition has intensified, and the market for new products has changed.