> **来源：[研报客](https://pc.yanbaoke.cn)** # Jiangsu Hengli (601100 CH) Summary ## Core Content and Key Information Jiangsu Hengli (601100 CH) reported its financial performance for 2Q26 and 1H26, with the following highlights: - **Net Profit**: RMB1.4bn in 1H26, which is flat YoY. The 2Q26 net profit was RMB784mn, down 3% YoY, primarily due to an FX loss from RMB appreciation. - **Revenue Growth**: 2Q26 revenue increased by 32% YoY to RMB3.6bn, with a 1H26 growth of 32.5% to RMB7.2bn. - **EBIT Growth**: EBIT rose 22% YoY to RMB775mn, driven by a drop in R&D expenses and strong performance in the hydraulic business. - **Operating Cash Flow**: Increased by 30% YoY to RMB736mn in 2Q26. - **Hydraulic Business**: Dominated the market with a 32% YoY growth in sales volume, reaching 408k units in 1H26. The company is estimated to have a 67% market share in the domestic and export markets. ## Financial Projections The following are the projected financial metrics for Jiangsu Hengli: | Metric | 2023A | 2024A | 2025A | 2026E | 2027E | 2028E | |----------------------|------|------|------|------|------|------| | Revenue (RMB mn) | 8,985 | 9,390 | 10,941 | 13,144 | 15,324 | 17,675 | | Revenue Growth (%) | 9.6% | 4.5% | 16.5% | 20.1% | 16.6% | 15.3% | | Adjusted Net Profit (RMB mn) | 2,499 | 2,509 | 2,734 | 3,491 | 4,194 | 4,883 | | Adjusted Net Profit Margin (%) | 27.8% | 26.7% | 25.0% | 26.6% | 27.4% | 27.6% | | P/E (x) | 56.4 | 56.2 | 51.5 | 40.4 | 33.6 | 28.9 | | P/B (x) | 9.8 | 8.9 | 8.2 | 7.2 | 6.3 | 5.6 | | Dividend Yield (%) | 0.7 | 0.7 | 0.8 | 1.1 | 1.3 | 1.5 | ## Analyst Ratings and Recommendations - **Ratings**: CMBIGM maintains a **BUY** rating for Jiangsu Hengli. - **Target Price**: RMB125.00, which is 18.9% above the current price of RMB105.11. - **Market Position**: Hengli is considered a key pick in the capital goods sector, with strong growth potential in its precision business and a positive outlook on its hydraulic business. ## Risk Factors - **Demand Slowdown**: Potential slowdown in demand for hydraulic components. - **New Business Development**: Slower-than-expected development of new business lines. ## Shareholding and Stock Performance - **Shareholding Structure**: Wang's family holds 64.3% of the shares. - **Share Performance**: - 1-month: -1.6% - 3-months: -10.2% - 6-months: -7.8% ## Financial Highlights (1H26) | Metric | 1Q26 (RMB mn) | 2Q26 (RMB mn) | YoY Growth (%) | |----------------------|--------------|--------------|----------------| | Total Revenue | 3,210 | 3,623 | 31.8% | | Gross Profit | 1,238 | 1,445 | 19.5% | | EBIT | 775 | 919 | 22.1% | | Net Profit | 653 | 784 | -3.4% | ## Valuation Metrics - **Blended Gross Margin**: Contracted 4.1ppts YoY to 39.9% in 2Q26, but expanded 1.3ppts QoY. - **P/E Band**: Shows a decline from 56.4x in 2023A to 28.9x in 2028E. - **P/B Band**: Decreased from 9.8x in 2023A to 5.6x in 2028E. - **Current Ratio**: Increased to 4.7x in 2026E, indicating improved liquidity. ## Key Assumptions and Business Segments - **Hydraulic Cylinders**: Expected to grow at 16.3% in 2026E. - **Hydraulic Pumps and Valves**: Projected to grow at 24.9% in 2026E. - **Hydraulic Systems**: Expected to grow at 20.0% in 2026E. - **Components**: Projected to grow at 20.0% in 2026E, with significant growth potential in the future. - **Other Business**: Expected to grow at 12.0% in 2026E and 2027E. ## Summary of Financial Health - **Liquidity**: Strong current ratio, indicating healthy short-term financial position. - **Debt to Equity**: Negative net gearing, suggesting a strong equity position. - **Gross Margin**: Maintained at around 42% for the hydraulic business, with slight variations. - **Operating Margin**: Increased to 26.4% in 2026E, indicating improved operational efficiency. ## Analyst Disclaimer - The analyst certifies that the views expressed reflect personal opinions and are not influenced by compensation. - The analyst has not traded in the stock within 30 days prior to the report and will not trade within 3 business days after. - CMBIGM is not liable for any loss or damage incurred from relying on the report. - The report is intended for use by specific clients and is not suitable for all investors. - The information is based on publicly available data and is provided on an "AS IS" basis without guarantees.