Agricultural machinery sector welcomes policies to support related companies

The development policy of the agricultural machinery industry was finally introduced. The policy has planned the development of the agricultural machinery industry in many aspects. Among them, the most dazzling nine financial and taxation policies have made people see the state's support for the development of the industry. Along with the benefits brought about by the policies, the listed companies in the agricultural machinery sector will also benefit.

Policy Nine Fiscal Tax Policies Supported by the Ministry of Agriculture and Industry The Ministry of Industry and Information Technology announced on August 22 the Agricultural Machinery Industry Development Policy. According to this policy, agricultural machinery companies will receive a number of financial and taxation policies including listing financing. The "Development Policy" carried out overall planning in terms of technology policies, product development, organizational structure, access management, market construction, financial and taxation policies, and import and export management. Among them, nine financial and tax policies support the development of the agricultural machinery industry more clearly.

The contents include: National technological innovation investment gives tilt and key support to the technological transformation of the agricultural machinery industry; Actively supports qualified companies to raise funds through various means such as listing and issuing bonds, broaden the direct financing channels, and provide corporate mergers, acquisitions, and restructurings. Policy support: encourage financial institutions to provide credit support for agricultural machinery projects that comply with industrial policies; the central government should comprehensively use fiscal and taxation levers to implement a stable tilt policy on agricultural machinery, and agricultural machinery products continue to apply a 13% VAT rate; in line with the national high-tech enterprises The agricultural machinery manufacturing enterprises that determine the conditions shall be subject to a corporate income tax rate of 15% at a preferential tax rate; they shall increase their financial input to support the construction of agricultural machinery industry’s technological innovation capabilities, the industrialization of scientific and technological achievements, and the introduction of technology and intelligence; encourage enterprises to increase technological innovation; and Relevant items are exempted from customs duties, value added tax, etc. within the prescribed scope.

Affecting the agro-machinery companies in favor of substantial benefits, Datong Securities Investment Consultant Fu Yongxuan believes that overall, this policy will further promote the development of China's agricultural machinery industry, in particular from a series of financial fiscal and tax policies to protect the future development of agricultural machinery enterprises, and continue Giving tax incentives will bring more substantial benefits to agricultural machinery companies.

CPA Consulting Machinery Industry Researcher Duan Jiaxuan also believes that the "Agricultural Industry Development Policy" will have the following advantages for the agricultural machinery industry: First, it will help promote the agricultural machinery enterprises to enhance their competitiveness through mergers and acquisitions, and promote the enterprises to become bigger and stronger. Second, it will help further expand financing channels and increase financial support for agricultural machinery companies. Third, it is conducive to the construction of a rational, orderly, and healthy production and circulation system for agricultural machinery products and promote the development of the entire agricultural machinery industry.

Presenting High Growth Opportunities Ping An Securities analyst Nie Xiuxin said that the agricultural machinery industry in China currently has a low rate of agricultural mechanization but sales of agricultural machinery have increased rapidly. In 2010, the level of comprehensive mechanization in farming was 52%, while the rate of mechanization in Japan was over 90% during the same period; in 2010, the entire industry achieved a sales volume of about 280 billion, maintaining an average annual growth rate of about 20% in recent years.

In addition, a large number of factors contributed to a significant increase in sales of agricultural machinery. The reasons for the large increase in sales of agricultural machinery include: the lack of domestic agricultural product price competitiveness, the increase in the opportunity cost of rural laborers to engage in labor production, and the concentration of agricultural production materials.

In addition, government subsidies are the catalyst for increased sales of agricultural machinery. The government's subsidy for the purchase of agricultural machinery increased from 70 million in 2004 to 15.5 billion in 2010, stimulating increased demand for agricultural machinery. It is expected that the central agricultural subsidies will maintain an annual growth rate of about 10% in the next two years, and its driving role in sales of agricultural machinery will continue to increase.

Duan Jiaxuan, researcher of China Investment Advisor Machinery Industry Co., pointed out that at present, the domestic agricultural machinery industry has benefited from policy encouragement and agricultural mechanization and has maintained a rapid growth trend. The main aggregate indicators rank among the top in the world. However, with the rapid development of the agricultural machinery industry, some problems still exist, including the overall product technology level is still low, the product structure is difficult to adapt to the needs of agricultural restructuring and so on. At the same time, the problem of outdated and low-quality agricultural machinery production equipment has not been solved for a long time, and there is no leading enterprise with strong market competitiveness.

Duan Jiaxuan believed that regarding the future development of the agricultural machinery industry, we should proceed from the following aspects: First, proceed from China's actual agricultural production, optimize the structure of agricultural machinery products, and produce agricultural machinery products suitable for China's agricultural production and agricultural demand. Second, in the process of introduction, digestion, absorption, and re-innovation, we will raise the level of agricultural machinery manufacturing and continuously improve the technological innovation capability of agricultural machinery. Third, increase the brand marketing of agricultural machinery companies, and build a modern agricultural circulation system and service system that conforms to China's national conditions, and fully regulate the development of the agricultural machinery market.

The industry presents high growth opportunities. The corresponding leader will analyze the benefit strategy Fu Yongsheng. From the perspective of the entire industry, agricultural mechanization is the only way for China's agricultural production. The state's support for the agricultural machinery industry will maintain a relatively long period of time. With the rapid development of the agricultural machinery industry in recent years, agricultural machinery consumers have expanded their demand for existing types of agricultural machinery products, increased the proportion of demand for refined agricultural machinery, and set higher requirements on the level of R&D and manufacturing of agricultural machinery enterprises objectively. The national agricultural machinery financial subsidies are effective in stimulating sales, and due to the need for production companies to advance the subsidy funds, to a certain extent, they have enlarged the requirements for scale and financial strength; with the rapid development of the industry, the service level has been gradually improved to parallel with product performance. the height of.

Therefore, Fu Yongxuan believes that the concentration of Chinese agricultural machinery industry is expected to continue to increase with the rapid growth of the overall demand for agricultural machinery, increasing state financial subsidies, and the upgrading of product mix resulting from continued expansion of farm machinery service coverage. The increase in industry concentration will cause the industry's earnings to diverge and boost the overall profitability. In this process, the corresponding leading varieties will benefit, especially those enterprises that have refined product lines for agricultural machinery and have technological advantages, and will fully share the dividends brought about by the rapid development of the entire industry. For example, the new research shares of the harvesting machine manufacturer, the Jifeng agricultural machinery of the agricultural machinery chain, and the Yueda Investment in the manufacture and sale of tractors.

Agricultural Machinery Circulation Company or indirect beneficiary company Jifeng Agricultural Machinery Executive Director 刁 Hailei: The company belongs to agricultural machinery circulation enterprises, and the “Agricultural Machinery Industry Development Policy” promulgated by the Ministry of Industry and Information Technology also concerns us. This policy is mainly directed at our upstream industrial agricultural machinery manufacturers. A policy is expected to have a positive and positive impact. In addition, this policy is also more specific and operability is strong. For example, the mergers and acquisitions mentioned in the encouragement and strengthening of technological transformations have a good policy orientation for the upstream manufacturing industry. At present, there are a large number of Chinese agricultural machinery manufacturing enterprises. For the further integration of upstream manufacturing industries, the optimization of industrial order, and the improvement of industrial efficiency have a relatively large policy effect on the development of the entire agricultural machinery industry. It is optimistic that the circulation of agricultural machinery can also benefit from the middle. We also hope that the industrial sunshine of the country can further illuminate the field of agricultural machinery circulation and let this area also shine new vitality. We hope to see such an industrial policy as soon as possible.