Jinwu Financial News | According to the CMB International Development Report, four construction machinery and heavy truck industry companies announced their results for the third quarter of '23 last night (October 30): Weichai Power (02338) and Zhonglian Heavy Industry (01157) performed better than expected; the performance of Sany Heavy Industries and Hengli Hydraulic fell short of expectations. All four companies achieved gross margin growth, and each company's revenue growth trend was quite different due to differences in product portfolios and revenue regions. Also, due to exchange rate fluctuations, the net profit of all four companies declined. Weichai Power and Zhejiang Dingli (whose results were announced last weekend) remain the bank's key recommendations for the industry.
Among them, Weichai Power's net profit for the third quarter increased by 181% year-on-year to RMB 2.6 billion, close to the upper limit of the performance forecast range. It is worth noting that this is the highest third-quarter profit in Weichai's history. Weichai remains the bank's first choice in the industry, and the bank expects Weichai to benefit from strong demand for heavy natural gas trucks.
Zhonglian Heavy Industries benefited from overseas business growth and low base effects. Net profit for the third quarter of '23 increased 80% year over year to 815 million yuan. The company's third-quarter revenue increased 22% year over year to 11.4 billion yuan.