Heng Li cylinder 386 million inventory not to mention the price of the reserve to raise the question

Affected by the economic slowdown, excavators and other sales continue to decline, specializing in the production of excavator dedicated oil cylinder constant cylinder (601100. SH) performance is also being dragged down. Heng Li Cylinder in the first half of 2013, inventories were increased by 16.11% to $386 million, but no provision was made for depreciation. Heng Li Cylinder in the newspaper showed that the excavator industry demand downturn, drag the company's performance, the first half of 2013 the company realized operating income of 692 million yuan, an increase of 19.22%; The net profit of the shareholders of the listed company is 152 million yuan, down 7.63%. It is noteworthy that the Heng Li cylinder in the report showed that its inventory has climbed to 386 million yuan, accounting for 17.4% of current assets, compared to the beginning of the increase of 16.11%, an increase of 56.9%. "Now the industry sales decline, steel prices down, 386 million yuan inventory without a loss of value, is gold?" "There are market participants who have questioned the Heng Li Cylinder since its listing in October 2011 and have never made any reference to the depreciation of inventories," he said. From the Heng Li cylinder of 386 million yuan inventory of the breakdown, mainly for up to 218 million yuan of raw materials, accounting for 56.5%, Inventory of goods for 105 million yuan, accounting for 27.2% of the product, 62.89 million yuan, accounting for 16.3% of the inventory. According to the 2011-year prospectus, the company's main raw materials for steel, steel and steel products cost about 50% of the main business costs. Earnings showed that the constant cylinder period of accounts receivable is 274 million yuan, the beginning of the 228 million yuan increase of 20.2%, the period of business activities generated by the net cash flow of 41.61 million yuan, down 30.1%; management costs increased by 69.76% to 72.45 million Yuan Year-on-year. At the end of the final constant oil cylinder has a monetary Fund of 867 million yuan, compared to the beginning of the 1.33 billion yuan down 34.8%, the prepayment is 227 million yuan, compared to the beginning of 92.9 million yuan increase 144.3%. Heng Li Cylinder is one of the four major excavator dedicated oil cylinder suppliers, and is the only domestic brand enterprises. Societe Generale Securities said that the current downstream excavator manufacturing market boom has seen a warmer signal, but in a weak recovery status, and excavator manufacturers and distributors slow inventory consumption, the impact of the company excavator special oil cylinder product orders, the market continues to slump will not be conducive to the company's oil cylinder sales growth and improve profitability. As of the time, the constant state cylinder reported 10.06 yuan, up 0.9%.