Can construction machinery industry regroup?

First, the industry's low point has formed a sales of engineering machinery industry to achieve more than 50% of the explosive growth in the first quarter, in April and May sales fell sharply than the chain. Major construction machinery products including excavators, loaders, bulldozers, and cranes all experienced a decline of around 30% in April. Recently, due to entering the rainy season, sales of construction machinery are relatively flat. In May, the excavator sales decreased by 12% year-on-year. The loader was basically the same as the previous year. Bulldozer sales decreased by 34% year-on-year. Forklift sales rose by 38.8% year-on-year. Truck cranes decreased by 10% year-on-year. The 7.23 Wenzhou Train Event triggered the decline in investment growth for the market. Concern, within this period of time, high-end equipment manufacturing stocks showed a trend of adjustment.

Second, the turnaround or will be born We think that a moderate adjustment will lead the entire industry to start again, and high-quality listed companies will run faster. From the following three aspects, high-end equipment is facing a big turnaround:

1. From the analysis of market demand, in the long term, the accelerating increase in the cost of low- and middle-income labor, import substitution to reduce the cost of procurement of machinery and equipment, emphasis on personal safety, and endogenous demand for improving product quality and production efficiency will jointly promote the replacement of labor by machinery. .

2. The construction of social housing will accelerate in the second half of the year. From a statistical point of view, the target for the construction of 10 million sets of affordable housing is currently only one-third completed, and the acceleration is expected in the second half of the year. After going through the motor vehicle incident, the safety of infrastructure construction will surely be placed on a more important position. Therefore, a high-quality listed company will have an advantage in the selection of equipment. 3. Emerging strategic industries. With aerospace and marine engineering being included in the new strategic industries, the upgrading of the equipment manufacturing industry triggered by these two industries will promote the reshuffling of the entire high-end equipment industry. Listed companies with unique capabilities will gain greater room for development in these two highly emerging markets. The next decade is the decade that can be expected.

4. The launch of the 12th Five-Year Plan for various industries. The “12th Five-Year Plan” of the construction machinery industry was introduced. During the “Twelfth Five-Year Plan” period, the sales revenue of China's construction machinery industry will reach 900 billion yuan, with an average annual growth rate of 17%, and the export target will be set at 26 billion US dollars. According to the current growth rate of the international market, it is estimated that the international demand for major engineering machinery products in the world in 2015 will be approximately US$210 billion, of which the circulation area will probably account for approximately US$70 billion, and the export value of construction machinery products in China will be approximately US$26 billion, compared with 2010. The 10.3 billion US dollars for the entire year doubled. The vast market space will surely set off the crowd. If you are looking for a good investment target within 10 years, the high-end equipment industry must not be neglected!