Machinery / Industrial Parts & Tools

According to statistics from the Machine Tool Industry Association, new and in-hand orders for metal processing machine tools in 2021Q1 increased by 90.1% and 28.1% year-on-year. In terms of profitability, the overall revenue and net profit of the machine tool industry in the first quarter of 2021 have increased significantly. 2021Q1 machine tool segment revenue was 6.23 billion yuan, a year-on-year increase of 51.4%, and net profit attributable to the parent was 230 million yuan, which turned from negative to positive year-on-year.

Guosheng Zhike’s 2021Q1 revenue and net profit attributable to its parent are 230 million yuan and 35 million yuan, an increase of 138.4% and 161.9% year-on-year. Q1 revenue and net profit both hit record highs. Gross profit margin and net profit margin increased by 1.4 and 1.3pct year-on-year. Genesis’s 2021Q1 revenue and net profit attributable to its parent were 11.4 and 130 million yuan, an increase of 125.3% and 654.5% year-on-year, and gross and net profit margins increased by 1.1 and 9.0pct year-on-year. The substantial growth in revenue and sales of the leading machine tools fully confirms the industry's high prosperity.

Kaiyuan Securities believes that in 2021Q1, the machine tool industry's new additions and a substantial increase in orders in hand confirm that the industry has entered an upward cycle.