Jiangsu Hengli Hydraulic Co.,Ltd (601100.SS) Bundle
A Brief History of Jiangsu Hengli Hydraulic Co.,Ltd
Jiangsu Hengli Hydraulic Co., Ltd. was founded in 1992 and has since grown into one of the foremost manufacturers of hydraulic products in China. The company specializes in the production of hydraulic cylinders, hydraulic pumps, and hydraulic valves. It has a robust portfolio serving sectors including construction machinery, industrial machinery, and automobiles.
In 2003, Hengli became publicly listed on the Shanghai Stock Exchange, marking a significant milestone in its operational expansion. As of 2022, the company's market capitalization was approximately RMB 59 billion. Its stock has shown strong performance, with a return on equity (ROE) of around 17.15% in the same year.
Throughout its history, Hengli has invested heavily in research and development. In 2021, it reported R&D expenditures totaling RMB 1.3 billion, equating to roughly 4.31% of its total revenue. The company holds numerous patents, emphasizing its commitment to innovation in hydraulic technology.
Hengli's production capabilities have expanded significantly. The production capacity for hydraulic cylinders reached approximately 1.5 million units by the end of 2022. This increase in production was complemented by the addition of new automated production lines, enabling enhanced efficiency and quality control.
| Year | Revenue (RMB Billion) | Net Income (RMB Billion) | Total Assets (RMB Billion) | Market Capitalization (RMB Billion) | ROE (%) |
|---|---|---|---|---|---|
| 2018 | 18.3 | 3.1 | 32.5 | 41.0 | 12.4 |
| 2019 | 21.5 | 3.8 | 35.2 | 45.5 | 15.7 |
| 2020 | 23.9 | 4.0 | 40.1 | 53.2 | 16.8 |
| 2021 | 26.7 | 5.5 | 45.3 | 57.6 | 18.3 |
| 2022 | 30.1 | 6.3 | 52.6 | 59.0 | 17.15 |
As of 2023, Jiangsu Hengli Hydraulic has expanded its international presence, establishing partnerships and expanding markets in Asia, Europe, and North America. Its exports accounted for approximately 30% of total revenue in 2022, showcasing its strong competitive position in the global hydraulic machinery market.
In terms of sustainability practices, Hengli has adopted a strategy focused on reducing emissions and optimizing energy usage. By 2023, the company reported a 15% reduction in carbon footprint compared to 2020 levels, aligning with global environmental standards.
The company's leadership, under the guidance of Chairman & CEO Li Ruifeng, emphasizes a long-term strategy aimed at enhancing product quality and expanding into new markets. Under this leadership, Hengli aims to solidify its status as a leading player in the hydraulic systems industry.
A Who Owns Jiangsu Hengli Hydraulic Co.,Ltd
As of the latest available data, Jiangsu Hengli Hydraulic Co., Ltd is primarily owned by its founder and chairman, Mr. Zhang Yi, who holds a significant controlling stake in the company. His leadership has been pivotal in driving the company's strategic vision and growth.
According to the company's 2023 annual report, Mr. Zhang Yi owns approximately 31.18% of the shares outstanding, reinforcing his position as the largest shareholder. The remainder of ownership is distributed among institutional investors and public shareholders.
The following table outlines the major shareholders of Jiangsu Hengli Hydraulic Co., Ltd as of October 2023:
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| Mr. Zhang Yi | 31.18% | Founder & Chairman |
| Shenzhen Hengli Investment Co., Ltd | 20.37% | Institutional Investor |
| China Life Insurance Co., Ltd | 5.12% | Institutional Investor |
| Public and Other Investors | 43.33% | Retail Investors |
In recent years, Jiangsu Hengli has seen increased interest from institutional investors, reflecting confidence in the company's robust financial performance and its strategic initiatives in hydraulic equipment manufacturing. The share price has demonstrated resilience, trading at approximately ¥70.50 as of October 2023, compared to a price of ¥58.20 in January 2023, marking an increase of 21.14% year-to-date.
This growth can be attributed to the rising demand for hydraulic equipment in various sectors, including construction and manufacturing. The company's revenue for the fiscal year 2022 was reported at ¥15.5 billion, with a net income of ¥2.3 billion, reflecting a net profit margin of 14.84%.
Shareholder dynamics are critical for assessing the strategies and future direction of Jiangsu Hengli Hydraulic. The concentration of ownership among a few key stakeholders allows for decisive management, which can either be a strength or a risk, depending on market conditions and operational challenges.
With continuous investments in R&D and strategic partnerships, Jiangsu Hengli aims to enhance its competitive position not only in China but also globally. Its expansion in international markets could further influence its ownership structure as the company looks for additional capital and partnerships.
Jiangsu Hengli Hydraulic Co.,Ltd Mission Statement
Jiangsu Hengli Hydraulic Co., Ltd., founded in 1998, specializes in the manufacturing of hydraulic equipment, primarily focusing on hydraulic components, hydraulic systems, and complete hydraulic solutions. The company's mission statement emphasizes innovation, quality, and customer satisfaction as core pillars driving its operational ethos.
The company aims to provide high-quality hydraulic components and systems that meet the evolving demands of various industries, including construction, agriculture, and transportation. Its commitment is highlighted by its continuous investment in research and development, ensuring the delivery of cutting-edge technology to enhance productivity and efficiency.
As of 2023, Jiangsu Hengli Hydraulic Co., Ltd. reported a revenue of approximately RMB 18.2 billion, marking a year-on-year increase of 15%. This growth underscores the effectiveness of its mission to deliver superior products and services.
| Year | Revenue (RMB Billion) | Growth (%) | Net Profit (RMB Million) | Total Assets (RMB Billion) |
|---|---|---|---|---|
| 2021 | 14.9 | 20 | 2,700 | 12.3 |
| 2022 | 15.8 | 6 | 3,000 | 14.1 |
| 2023 | 18.2 | 15 | 3,600 | 16.8 |
The company prioritizes sustainable practices as reflected in its mission statement, which includes a commitment to reducing environmental impact through efficient resource management and innovative solutions. This focus aligns with global trends toward sustainability and responsible manufacturing.
In terms of market positioning, Jiangsu Hengli Hydraulic holds approximately 15% of the hydraulic equipment market in China, indicating a strong brand presence and customer loyalty. The company’s extensive product range, which includes over 400 different products, strengthens its competitive edge in the sector.
Hengli's quality assurance processes are integral to its mission statement. The company has invested heavily in ISO certifications, achieving ISO 9001:2015 and ISO 14001:2015, demonstrating its commitment to quality and environmental management standards.
Employee engagement also plays a critical role in realizing the company's mission. As of 2023, Hengli employs over 6,000 staff members, with ongoing training programs aimed at enhancing skills and knowledge within the industry.
In conclusion, Jiangsu Hengli Hydraulic Co., Ltd.'s mission statement not only reflects its commitment to innovation and quality but also sets a framework for its strategic goals, aligning business growth with sustainable practices and strong customer relations.
How Jiangsu Hengli Hydraulic Co.,Ltd Works
Jiangsu Hengli Hydraulic Co., Ltd., established in 1995, specializes in the production of hydraulic components and systems. The company is a leading manufacturer in hydraulic cylinders and hydraulic pumps, serving various industries including construction machinery, mining, and manufacturing.
In 2022, Jiangsu Hengli reported a revenue of approximately RMB 19.4 billion (around $2.8 billion), marking a growth of 20% from the previous year. The net profit was about RMB 3.5 billion (roughly $510 million), with a profit margin of 18%.
The company operates through several segments:
- Hydraulic cylinders
- Hydraulic pumps
- Hydraulic valves
- Hydraulic systems
Hengli’s product line is fundamental in the hydraulic industry. In 2022, hydraulic cylinders accounted for around 65% of total revenue, followed by pumps at 25% and valves at 10%.
| Product Category | Revenue Contribution (%) | 2022 Revenue (RMB) |
|---|---|---|
| Hydraulic Cylinders | 65% | 12.6 billion |
| Hydraulic Pumps | 25% | 4.85 billion |
| Hydraulic Valves | 10% | 1.94 billion |
Geographically, Jiangsu Hengli has a strong presence domestically and is expanding internationally. In 2022, the company derived approximately 80% of its revenue from domestic markets, while 20% came from overseas markets, notably in Europe and North America.
As of Q3 2023, the total assets of Jiangsu Hengli were reported to be around RMB 24 billion (approximately $3.5 billion), with liabilities of RMB 8 billion (around $1.15 billion), yielding a current ratio of 3.0.
Research and development is a key focus for Hengli. In 2022, the company invested approximately RMB 1.2 billion (about $170 million) in R&D, which represents about 6% of its total revenue. This investment aims to enhance product quality and innovate new hydraulic technologies.
Jiangsu Hengli's workforce comprises over 10,000 employees, with about 1,500 dedicated to R&D. The company holds more than 200 patents, emphasizing its commitment to technological advancement.
Furthermore, in 2023, Hengli’s stock was trading at approximately RMB 70 per share, reflecting a year-to-date increase of 15%. The company's market capitalization stood at about RMB 120 billion (around $17.4 billion), positioning it as one of the top players in the hydraulic industry.
The firm has also been recognized for its environmental initiatives, successfully reducing manufacturing waste by 30% over the last five years, aligning with global sustainability goals.
How Jiangsu Hengli Hydraulic Co.,Ltd Makes Money
Jiangsu Hengli Hydraulic Co., Ltd. operates primarily within the hydraulic components industry, specializing in the production of hydraulic cylinders, hydraulic pumps, and hydraulic systems. The company's revenue streams are generated through different segments, primarily focusing on construction machinery, marine equipment, and industrial applications.
In 2022, Jiangsu Hengli Hydraulic reported a total revenue of RMB 13.32 billion, a year-on-year increase of 17.7%. The net profit attributable to shareholders stood at RMB 2.75 billion, reflecting a margin of approximately 20.6%.
The company breaks down its income sources into several key segments:
- Construction Machinery
- Marine Engineering
- Industrial Applications
- Environmental Protection Equipment
Each segment contributes notably to the overall financial performance. The following table illustrates the revenue contributions from each segment for the fiscal year 2022:
| Segment | Revenue (RMB Billion) | Percentage of Total Revenue (%) |
|---|---|---|
| Construction Machinery | 8.00 | 60.0 |
| Marine Engineering | 2.50 | 18.8 |
| Industrial Applications | 1.50 | 11.3 |
| Environmental Protection Equipment | 1.32 | 9.9 |
Jiangsu Hengli Hydraulic benefits from a robust R&D investment which was approximately RMB 1.1 billion in 2022, constituting about 8.2% of its total revenue. This focus on innovation has led to the development of cutting-edge products that cater to the evolving market demands.
The company’s strategic partnerships with major players in the construction and marine sectors further bolster its revenue streams. Notably, Jiangsu Hengli has established long-term contracts with prominent construction machinery manufacturers, enhancing its sales volume and market share.
Export sales are also significant to Jiangsu Hengli’s revenue model, accounting for approximately 30% of total sales, with key markets including Europe, North America, and Southeast Asia. The export revenue reached around RMB 4 billion in 2022.
Another income avenue includes the provision of repair and maintenance services, which contributes an estimated RMB 600 million annually to the company’s revenue. This is a strategic move to ensure customer retention and recurring income.
In addition to existing products, Jiangsu Hengli continues to evolve its offerings by focusing on the development of smart hydraulic solutions, forecasting significant growth potential in this domain.
The company’s financial stability is also reflected in its balance sheet, with total assets valued at approximately RMB 22 billion and a debt-to-equity ratio of 0.26, indicating a strong leverage position and efficient capital management.
Overall, Jiangsu Hengli Hydraulic Co., Ltd. makes money through a combination of high-value product segments, strategic partnerships, R&D investments, and diversified income sources.
Jiangsu Hengli Hydraulic Co.,Ltd (601100.SS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.