The above three solemn promises ushered in an important moment: 4,195 employees who held “100 billion commemorative coupons”, 6 heroes of earthquake and disaster relief and 33 gold medal employees, received a total bonus of nearly 100 million yuan.
The company of other people’s house, send bonus again!
Recently, Sany Group fulfilled its previous promise and awarded 100 million yuan to outstanding employees. Liang Wengen, chairman of the company, also promised to reward each “gold employee” with 5 million yuan when the total market value of the group’s listed companies reached 1 trillion yuan.
Brokerage Chinese reporters learned from Sany Group, in 2020, Sany Group’s performance hit a new high, achieving sales of 136.8 billion yuan.
100 million yuan as a reward for outstanding employees
It is understood that during the financial crisis in 2008, many employees of Sany Group took the initiative to get through the difficulties with the company. At that time, Liang Wengen made a promise to these employees that when Sany exceeded 100 billion yuan, the employees who held “100 billion souvenir vouchers” would be rewarded heavily. In the year of the Wenchuan earthquake, Liang Wengen promised that SANY employees who made special contributions to the earthquake relief would be equally rewarded. In addition, to express his gratitude to the “Gold Medal Employees” who have accompanied the company’s growth since 1994, Liang Wengen once again solemnly promised that “when Sany’s sales volume exceeds 100 billion yuan, we will give each gold medal employee a reward of 1 million yuan”.
On February 28, 2021, an important moment came when the above three solemn promises were fulfilled: 4,195 employees who held “100 billion commemorative certificates”, 6 heroes of earthquake and disaster relief and 33 gold medal employees received a total bonus of nearly 100 million yuan. Among them, 33 gold medal employees each received a bonus of 1 million yuan, a total of 33 million yuan.
Xiang Wenbo, president of Sany Heavy Industry Co., Ltd., said that the fulfillment of these three commitments is the power of trust and the embodiment of Sany’s values of “being grateful”. Since its inception, SANY has been an enterprise with clear value pursuit. Now, Sany has stood at the door of the world’s top 500, and its values are still its talisman and “most valuable” treasure. He encouraged all the three members to not only make joint efforts to do a good job of the enterprise, but also to inherit SANY’s corporate culture and values spirit and create infinite possibilities for the future together.
Liang Wengen, chairman of Sany Group, said this year’s award is the largest in history. Liang Wengen said, “Today’s Sany is more mature and rational than ever before, and closer to the goal of becoming a world-class enterprise.” He was very proud of it.
Liang also promised on the spot that when the total market value of Sany Group’s listed companies reached 1 trillion yuan, he would reward each “gold employee” with 5 million yuan.
For Sany Group’s behavior of rewarding employees, many netizens expressed envy. Some netizens said, “I also want to go to Sany” and “giving employees a sense of honor and year-end rewards is the biggest motivation to motivate the enterprise to move forward.” There are also netizen joked: “has completed a third of the boss, the first 5 million 1/3 of the bai”. “Boss, this cake is too hard for me to digest,” another netizen joked.
The company’s market value soared by 300 billion yuan in two years, up 400%
Listed company Sany Heavy Industry Co., Ltd. (600031) is the most important holding subsidiary of Sany Group. As of February 9, 2021, Sany Group’s direct shareholding of Sany Heavy Industry Co., Ltd was 30.15%.
Benefited from the industry’s high boom, Sany Heavy Industry’s performance continued to grow at a high speed. In the first three quarters of 2020, the company achieved revenue of 72.892 billion yuan, an increase of 24.20% compared with the same period in 2019; Net profit attributable to shareholders of listed companies was 12.450 billion yuan, up 34.69% year on year. In the whole year of 2020, excavators sold 327,600 units, with a year-on-year increase of 39% and a significant new historical record.
More striking than the results has been the performance of Sany’s share price. Statistics show that the company’s stock price rose 118% in 2019, another 109% in 2020, and another 24% since 2021, substantially outpacing the industry average and the three major indexes.
Since January 1, 2019, Sany’s share price has risen from 7.66 yuan to the latest 43.50 yuan, a cumulative increase of 442%, and its total market capitalization has soared from 65 billion yuan to 369.1 billion yuan, an increase of 304.1 billion yuan during the period.
(Secondary Market Performance of A-share Listed Companies in Construction Machinery Industry)
The current market value of Sany Heavy Industry is three times that of Zoomlion, which is more than the sum of the No. 2 to No. 21 in the construction machinery industry, and it has long occupied the leading position in the industry.
According to Wind data, since its listing in 2003, Sany Heavy Industry has implemented 18 times of cash dividends, totaling 14.161 billion yuan, and 2 times of equity refinancing (1 private placement and 1 convertible bond), totaling 7.536 billion yuan. The amount of cash disbursed is nearly twice the amount of equity refinancing.
Industry boom is high, organization: Sany Heavy Industry target market value of 509.1 billion yuan
Since entering 2021, the high boom of the construction machinery industry remains unchanged. The statistical data of China Construction Machinery Industry Association shows that in January 2021, the sales of excavators from 26 main engine manufacturing enterprises totaled 19,601 sets, with a year-on-year growth of 97.2%. According to the industry chain survey, it is expected that the excavator will increase by more than double in January and February.
Many brokerage institutions believe that the industry boom continues, the performance of Sany Heavy Industry is strong, and the valuation and market value still have room to improve.
Guotai Junan pointed out that construction machinery continued high growth in the first quarter, competition entered a rational stage, leading share and profitability is expected to further improve. In 2020, Sany Heavy Industry exported more than 10,000 excavators, with a growth of 27.5%. Its market share and ranking in Southeast Asia have increased significantly, and the growth rate in European and American markets is also far higher than that of foreign competitors. In the future, the company will strengthen the service system and personnel scale construction, and the market share is expected to continue to increase. Give the company 20x PE in 2021, raise the target price to 49.6 yuan, increase the holding.
Soowu Securities said that in the Chinese market, which is the most competitive in the world, Sany’s share of excavators has risen to 28% in 2020, much higher than Xugong’s 16% and Carter’s 10%, showing excellent competitiveness. However, the overseas share is expected to be less than 3% in the same period, which is extremely unmatched with product competitiveness and company positioning. With the comprehensive spread of the international layout, digitalization deepens the leading competitive advantage, the company’s globalization process is expected to accelerate. Give 2021 target valuation of 25 times PE, corresponding market value 482.5 billion, maintain “buy” rating.
Tianfeng Securities believes that the international market is expected to recover with the restart of global production after the implementation of vaccines in 2021, and Sany Heavy Industry will highlight its growth attributes under the internationalization strategy. According to the company’s performance forecast earnings and the boom of industry more than expected, raising the company in 2021 – the parent company in 2022 net profit to 20.5 billion and 24.5 billion respectively, the current PE 18.59 times in 2021, for the engineering and the mechanical part target, think sany reasonable valuation of 24.8 X as target value, the target value of 509.1 billion yuan, a 33.43% rise in space, the target price for 60 yuan, maintaining a “buy” rating.
article links：Sany Group 100 million RMB Outstanding Employee Award
Reprint indicated source：Shine Trader Limited Live information