Recently, Sany Heavy Industry (600031) and Sanhe Intelligent (002097), a well-known listed company in Hunan's construction machinery industry, released a mid-year report. On the basis of a significant increase in credit sales, the two construction machinery giants all delivered good performance orders, but made investments. What worries people is that the sharp increase in accounts receivable is a weakness that will threaten the future development of the company.

The good performance but the decrease rate of decline Sany Heavy Industry reported that in the first half of the company's operating income reached 30.363 billion yuan, an increase of 79.18%; net profit attributable to shareholders of listed companies 5.939 billion yuan, an increase of 106.57%, basic earnings per share of 0.78 yuan. In contrast, Shanhe's profitability is much smaller. In the first half of the year, its total operating income was 1.988 billion yuan, an increase of 36.79% year-on-year; operating profit was 161 million yuan, only a slight increase of 3% year-on-year, and it was attributable to shareholders of listed companies. The profit was 161 million yuan, which was a year-on-year increase of 20.09% due to the lower base figure for the same period last year, far exceeding the increase in operating profit.

The reporter saw that due to the slowdown in the growth rate of investment in fixed assets under macro-control, the growth rate of Hunan construction machinery giants has dropped significantly. Sany Heavy Industry reported in a quarterly report that the net profit attributable to shareholders of listed companies was 2.663 billion yuan, a year-on-year increase of 140%.

Account receivables and stocks surged under the splendid performance ring, and investors are paying more attention to the surge in receivables and inventory of construction machinery companies.

According to the report, Sany Heavy Industry’s accounts receivable in the first half of the year amounted to 13.355 billion yuan, a surge of 133.16% from the 5.727 billion yuan at the end of last year, and the company’s inventory was 7.802 billion yuan, an increase of 37.2% from the end of last year.

Due to the relatively small base, credit sales increased sharply in the first half of the year and Sanhe Intelligent’s risk in this area seems to be even greater. According to the report, as of June 30, the company's accounts receivable amounted to 1.422 billion yuan, a sharp increase of nearly 400 million yuan from the end of last year, a significant increase of 34.12% year-on-year. In this regard, the industry sources said that if the company's accounts receivable 10% loss, it will be as high as 142 million yuan, then the company's net profit attributable to shareholders of listed companies in the first half of this year will be almost lost. In addition to credit sales risks, the reporter also found that Shanhe Intelligence’s current inventory has reached 1.305 billion yuan, an increase of 10.88% from the end of last year.

Is starting to prevent related risks Industry insiders said that bank mortgage, financial leasing and other credit sales model, in the high-speed growth phase of the industry will help boost performance, but this year, China's fixed asset investment growth rate decline, and the clean-up of the local financing platform And so on, the inflection point of construction machinery industry is looming, and the increase in credit sales will increase the cash flow pressure of the company. In this regard, Founder Securities Engineering Machinery Industry researcher Peng Min pointed out that in general the construction machinery industry business cycle is 4 years, with the 2008 national 4 trillion yuan investment pulling effect weakened and disappeared, this year and next year, the machinery industry fear of entering the down cycle.

Regarding the credit sales risks, Cai Junyun, a director of Shanhe Intelligence, said that the company is currently meeting and researching, and will formulate relevant measures to curb its risks. However, there are no concrete measures. However, Sany Heavy Industry may have already controlled the risk of credit sales. The reporter found that the company's accounts receivable in the first quarter was 13.239 billion yuan, while the Zhongbao reported that the receivables were 13.355 billion yuan, indicating that the company should receive the entire second quarter. Almost no increase in accounts.