20260825-招银国际-恒立液压-601100.SH-Net_profit_-3_YoY_in_2Q26_but_largely_due_to_FX_loss_strong_revenue_growth_and_EBIT_6页_1mb

报告摘要

Jiangsu Hengli (601100 CH) reported its financial performance for 2Q26 and 1H26, with the following highlights:

Net Profit: RMB1.4bn in 1H26, which is flat YoY. The 2Q26 net profit was RMB784mn, down 3% YoY, primarily due to an FX loss from RMB appreciation.
Revenue Growth: 2Q26 revenue increased by 32% YoY to RMB3.6bn, with a 1H26 growth of 32.5% to RMB7.2bn.
EBIT Growth: EBIT rose 22% YoY to RMB775mn, driven by a drop in R&D expenses and strong performance in the hydraulic business.
Operating Cash Flow: Increased by 30% YoY to RMB736mn in 2Q26.
Hydraulic Business: Dominated the market with a 32% YoY growth in sales volume, reaching 408k units in 1H26. The company is estimated to have a 67% market share in the domestic and export markets.

The following are the projected financial metrics for Jiangsu Hengli:

Metric	2023A	2024A	2025A	2026E	2027E	2028E
Revenue (RMB mn)	8,985	9,390	10,941	13,144	15,324	17,675
Revenue Growth (%)	9.6%	4.5%	16.5%	20.1%	16.6%	15.3%
Adjusted Net Profit (RMB mn)	2,499	2,509	2,734	3,491	4,194	4,883
Adjusted Net Profit Margin (%)	27.8%	26.7%	25.0%	26.6%	27.4%	27.6%
P/E (x)	56.4	56.2	51.5	40.4	33.6	28.9
P/B (x)	9.8	8.9	8.2	7.2	6.3	5.6
Dividend Yield (%)	0.7	0.7	0.8	1.1	1.3	1.5

Ratings: CMBIGM maintains a BUY rating for Jiangsu Hengli.
Target Price: RMB125.00, which is 18.9% above the current price of RMB105.11.
Market Position: Hengli is considered a key pick in the capital goods sector, with strong growth potential in its precision business and a positive outlook on its hydraulic business.

Demand Slowdown: Potential slowdown in demand for hydraulic components.
New Business Development: Slower-than-expected development of new business lines.

Metric	1Q26 (RMB mn)	2Q26 (RMB mn)	YoY Growth (%)
Total Revenue	3,210	3,623	31.8%
Gross Profit	1,238	1,445	19.5%
EBIT	775	919	22.1%
Net Profit	653	784	-3.4%

Blended Gross Margin: Contracted 4.1ppts YoY to 39.9% in 2Q26, but expanded 1.3ppts QoY.
P/E Band: Shows a decline from 56.4x in 2023A to 28.9x in 2028E.
P/B Band: Decreased from 9.8x in 2023A to 5.6x in 2028E.
Current Ratio: Increased to 4.7x in 2026E, indicating improved liquidity.

Hydraulic Cylinders: Expected to grow at 16.3% in 2026E.
Hydraulic Pumps and Valves: Projected to grow at 24.9% in 2026E.
Hydraulic Systems: Expected to grow at 20.0% in 2026E.
Components: Projected to grow at 20.0% in 2026E, with significant growth potential in the future.
Other Business: Expected to grow at 12.0% in 2026E and 2027E.

Liquidity: Strong current ratio, indicating healthy short-term financial position.
Debt to Equity: Negative net gearing, suggesting a strong equity position.
Gross Margin: Maintained at around 42% for the hydraulic business, with slight variations.
Operating Margin: Increased to 26.4% in 2026E, indicating improved operational efficiency.

The analyst certifies that the views expressed reflect personal opinions and are not influenced by compensation.
The analyst has not traded in the stock within 30 days prior to the report and will not trade within 3 business days after.
CMBIGM is not liable for any loss or damage incurred from relying on the report.
The report is intended for use by specific clients and is not suitable for all investors.
The information is based on publicly available data and is provided on an "AS IS" basis without guarantees.

展开完整摘要