Ye Tan finance | Anhui force: small industry in the big story as exciting as chip war!

Neither break nor stand, can stand after breaking, this is a powerful regenerative ability.

In the last new entity column, we mentioned that dozens of solid and refined enterprises were selected from more than 4,000 enterprises to help the new entity in China.

The criteria for screening are: long-term involvement in entities, decades of intensive cultivation, dissatisfaction with the sky floating around, not keen on speculation, the possibility of rediscovery of value.

Some enterprises seem not sexy, in fact, there is sexy inside.

We believe that decades of solid work is sexy, in an industry through the wind and waves can stand up, healthy growth, must be good.

Smaller industries, less well-known and less talked about, are also trying to break the foreign monopoly in their own niches.

For this column, we focus on a segment of the machinery industry, forklift; Said an honest enterprise, Anhui force.

Although well-known in the industry, the company's total market value was only 8.157 billion yuan on Nov. 8, 2021.

Not all can be printed into the public eye of the industry is a good industry, the more humble industry, the more the need for hard work and persistence, these enterprises have no Huang Lao evil style natural and unrestrained, have a plenty of Tough guo Jing.

The industry is not up to the ceiling

At 5:30 a.m. on May 19, 2015, Heli Building, with a history of 21 years, collapsed in the loud explosion, formally bidding farewell to hefei citizens.

It took 21 years to say goodbye in 12 seconds.

As one of the symbols of Hefei industry, hefei old forklift factory was founded in 1958, which is a small jigsaw puzzle of new China's industrial layout.

All the old enterprises have been the witness of history.

When the factory was first built, it was surrounded by wasteland and rice fields. In 2008, it was all moved to heli Forklift Industrial Park.

As a brilliant brand in Anhui, Heli has given anhui people too much pride, and is still one of the sources of pride.

In the past 50 years, the old factory has witnessed many historic moments, from the first batch of forklifts designed and manufactured by ourselves, to the introduction of Japanese technology in 1983, to the annual output of 80,000 forklifts now, and the products are exported abroad.

Forklift is fully competitive industry, technical content is not high, how to step by step, slow and steady?

The industry hasn't reached the ceiling yet.

Forklift, a typical ubiquitous but neglected industry, can be found in all kinds of express delivery, warehousing, factories, docks and other news footage of this special vehicle.

Construction is more and more, the labor cost is higher and higher, in the manufacturing and logistics industry with high demand for heavy lifting, the use of forklift is more and more.

Forklift periodicity is not obvious. Unlike engineering equipment such as cranes, which are mainly used for engineering construction, they are highly cyclical as capital expenditure rises and falls.

Half and 1/4 of the buyers of forklifts are from the manufacturing industry and logistics industry respectively. Thanks to the rapid development of manufacturing automation and logistics, the sales volume of forklifts is increasing year by year.

In 2004, the number of forklifts in China was 59,676 units, growing to 608,341 units in 2019 with a 15-year CAGR of 16.7%.

In 2004, heli's sales revenue increased to 1.368 billion, and increased to 10.13 billion in 2019, with a 15-year CAGR of 14.3%.

In the whole construction machinery industry, forklift is one of the fastest growing segments.

After looking at the past and looking to the future, the growth rate of forklift industry is not slowing down at present.

Under the background of intelligent and aging manufacturing industry, the per capita forklift retention rate in China is still much lower than that in developed countries in Europe and America. The growth rate of forklift sales in developed countries in Europe and the United States is still more than 5-7%, and it is estimated that China's forklift sales will maintain a long-term growth rate of more than 10%.

A niche industry, double digit growth. Enjoy it.

Since 2015, the share price of Anhui Heli has reached a maximum of about 171 yuan (later reinstated) and a minimum of about 70 yuan. It is hard to feel surprise and no pain.

Fully competitive big Red Sea runners shine the brightest

Forklift industry technology is not dazzling, fierce competition, there is not so much space for imagination.

The key of the head enterprise of industry is steady and steady, innovate step by step, expand the market, consolidate oneself market share.

Annual sales are mainly divided by the head enterprises, state-owned Anhui Heli and private Hangzhou Fork Group occupied more than 50% of the entire market share, the current share of the two similar, the top ten enterprises occupy about 80% of the market share.

Heli does not make big mistakes at critical moments, is neither conservative nor radical, and is very clear-headed.

The result is that when the tide ebbs, it does not fade away.

This is a dedicated long-distance runner.

The main business of Anhui Heli, forklift trucks and spare parts, accounts for more than 99%, and the investment assets account for less than 10% of the total assets.

Well, it's an honest long-distance running company.

When the market is at its best, it does not do diversification, but mostly does upstream and downstream, financial leasing related to product sales, and does not play such colorful things as renaming and stir-frying.

When the engineering machinery giants entered the siege, they dug deep holes, accumulated grain and prepared weapons.

There is no revolutionary change in technology, but it has gradually mastered the right to make some standards and the right to speak in the industry.

By the end of 2019, the company has obtained a total of 2,141 valid authorized patents, including 227 invention patents. Presided over or participated in the formulation of 40 national standards, 23 industrial standards and 1 group standard.

The company's online production of more than 1700 models, 512 products all have independent intellectual property rights, product comprehensive performance in the domestic leading, international advanced level.

In order to consolidate the competitive advantage, one step ahead in the competition, Anhui force like Zeng Guofan buried himself in digging holes.

Domestic ordinary forklift enterprises generally have only a few products and dozens of models. Hangzhou fork has more than 500 varieties, more than 1000 specifications and models. The joint force is more powerful, online production of 512 products, more than 1700 types of models, is the most complete variety of forklift manufacturers in China.

The existing product series has 24 tonnage levels, more than 500 varieties, more than 1700 models, covering electric, internal combustion industrial vehicles, port machinery equipment, off-road forklifts, military forklifts, explosion-proof forklifts and other categories.

As for management, let the data speak for itself.

The company is financially sound.

The asset-liability ratio, although rising in recent years, is still less than 40%, and there is basically no risk of debt repayment. The difference between quasi-monetary funds and interest-bearing liabilities is much greater than 0, and there is no debt paying pressure.

Compared with other construction machinery enterprises, this forklift leading operating capacity index is far ahead.

Anhui Heli's revenue accounts turnover rate is 13.79, far higher than the industry level, which indicates that the company's overall account period is less than one month, which is also the reason why the company's cash flow is far higher than its capital expenditure all the year round.

The total asset turnover rate of the company is above 1.4 and the inventory turnover rate is above 8.0, which are far higher than the peers, fully demonstrating its high turnover efficiency.

What is more rare is that Anhui Heli has nearly 300 million contractual liabilities in 2020, all of which are advance payments, proving that its products are in short supply and very easy to sell.

In the five years from 2016 to 2020, Anhui Heli's revenue doubled, with revenue of 6.2 billion yuan in 2016 and 12.8 billion yuan in 2020. In the first three quarters of 2021, the total revenue has been 11.8 billion yuan, and it is expected to achieve a growth of about 20% this year.

Like cement, the forklift industry must be located in the core to reduce transport costs.

The two companies are expanding their borders, and the industry needs a local production base to avoid being dragged down by transport and services.

Look at the professional analysis: The transportation cost of Anhui Heli and Hangzhou Fork decreased year by year, reaching 362 yuan/set in 2019, accounting for 0.5% of the sales revenue, ahead of its competitor Hangzhou Fork. In 2019, hangzhou Fork's transportation cost was as high as 1,723 yuan/set, accounting for 2.7% of the sales revenue.

In 2019, hangzhou Fork's unit transportation cost was 4.8 times that of Heli, and transportation cost accounted for 2.2% more than Heli in sales revenue. Of course, Hangzhou once had an advantage in terms of profits.

Hangzhou Fork Group to make this explanation, just confirmed the old enemy one step ahead of the national layout:

Anhui together except co., LTD is located in anhui hefei, also in hunan hengyang, shaanxi baoji, liaoning panjin, a more complete vehicle production, assembly base, can nearby delivery, transportation cost is relatively low, and the issuer all vehicle production, the assembly is located in hangzhou, zhejiang province, in the case of most regions of the country, far transportation distance.

If multiple production sites can drastically reduce transportation costs and increase profits, why don't competitors do the same? The reason is simple. It's easy to look at. It's physically exhausting. It is not as easy as imagined to set up a factory in different places. The investment is not big, and each region needs to accumulate a considerable number of orders to offset the freight savings.

One or two years of plant construction, plus at least three or five years of cultivation period to achieve the quantity of equilibrium point, the real benefit may be years later, but also with market growth. Having endured several years of declining profit margins, it was difficult to make this decision without strategic vision and a lot of boldness.

A competitor that actively engages in a price war could come from Mars

In the third quarter of 2021, the price of bulk commodities surged, affecting the forklift industry.

The third quarterly report shows that anhui Heli's operating cash flow gross margin fell to 16%, and the net cash flow of operating activities was only 74 million yuan, down 89.50% year-on-year.

Is it becoming less competitive?

It's not.

We noted that the revenue in the first three quarters of 2021 was 11.82 billion yuan, up 30.30% year-on-year, higher than 21.20% in the first three quarters of 2020 and 0.31% in the first three quarters of 2019. Moreover, the debt-to-interest ratio of enterprises in the first three quarters of 2021 was still less than 20%.

This indicates that enterprises are likely to actively choose to carry out price wars to seize more market shares in the difficult period of the industry.

This can only be supported if the company is financially sound.

Some of the less competitive enterprises, in the process of rising steel costs and revenue in the face of a pincer attack, may withdraw from the forklift market.

With the improvement of raw material cost and the end of price war, the gross margin of Anhui Heli will return to normal.

Among the world's top ten forklift truck enterprises in 2020, Anhui Heli is the highest Ranked Chinese enterprise, but unfortunately failed to join the global TOP5.

Japan's Toyota Took the top spot with $12.67 billion in revenue and 265,500 vehicle sales. Germany's Kao came in second with $6.92 billion in revenue and 198,300 units sold. Anhui Heli ranked seventh with revenue of $1.93 billion and sales of 220,700 vehicles.

In terms of the average unit price, the average price of Toyota forklift is about 47,700 USD/set, and the average price of Kaiao forklift is about 34,900 USD/set. The average price of Haisteryale forklift, which ranks sixth in the world, is 32,800 USD/set. However, the average price of Anhui Heli forklift is only 8,700 USD, 18% of Toyota, 25% of Kaiao forklift and 27% of Haisteryale forklift.

There are two reasons for this price difference.

First, heli forklifts have not been fully recognized by the market in heavy and high-quality forklifts, and their sales are limited. General low tonnage did not have what problem, but to high tonnage, the market or recognize international brands.

The heavier the tonnage of forklift and the higher the lifting height, the more expensive the price of forklift and the higher the profit.

At present, foreign brands still occupy 10% market share in the domestic market, mainly heavy lift trucks. The profit of selling a few domestic brands is not as good as selling one overseas.

Fortunately, Anhui Heli heavy forklift tonnage has reached 46 tons, to achieve a breakthrough from scratch.

Chinese enterprises at the beginning of the cost-effective way to win, like other industries, domestic forklift relying on high cost performance, internationalization. Compared with the same level forklifts at home and abroad, the domestic price is generally 30-50% cheaper, with obvious competitive advantages and great export potential.

Export data validate the price advantage of domestic brands. According to the statistics of the Construction Machinery Industry Association, in 2010, the number of forklifts exported in China was only 24,100, and in 2020, the export was 181,700, with an average annual growth rate of more than 20%.

Even though the export has been growing for 10 years in a row, the export volume of China's forklift truck only accounts for less than 20% of the total sales volume in other parts of the world. There is still room for further improvement in the market share in the future.

The top end of the market is usually the fattest piece of meat in any industry. Many enterprises in Our country are still in the middle and low end of the effort to enter the high-end road, Anhui joint effort has a long way to go.

Like Anhui together such long-distance enterprises, capital is not favored, the market is not active, a little pity.

Heli's real competition may come from Mars. Byd, for example, is making electric forklifts, and has gained a lot of favor from car bosses.

A giant stepping into a small garden could cause a fundamental change in the ecological chain.

Perhaps this is the fundamental challenge facing the forklift industry.

The market has never really loved this kid with little imagination and little talk.

Now, facing the dual challenges at home and abroad, this is the risk of Anhui's joint efforts in this kind of manufacturing industry, but also the opportunity to defeat catfish.

This tan30 power new entity column end, we have what you really optimistic about the new entity company, welcome to leave a message below the article.

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