Construction machinery industry "money" growth rate may slow down

Benefiting from the national policy, in the first quarter of this year, China's construction machinery industry still maintained a high growth trend. Of the companies that have issued the first-quarter results announcement, the vast majority of companies have grown by more than 50% year-on-year, and about half of the companies are expected to grow at a rate of 100%.

According to the data from China Construction Machinery Industry Association, the sales revenue of main products of the major construction machinery enterprises in the country increased by 57.04% from January to February. Although the data for March was still unreleased, it is expected that the sales volume of industry products in the first quarter of this year will not fall below 50% from the performance forecast announced by various companies.

The annual report of the company's annual popularity rises to the highest level in the first quarter, and the Xugong Group announces that the first quarter results announcement has increased by more than 100% year-on-year.

On April 12, Xugong Machinery announced the announcement of the pre-announcement of the first quarter of 2011. The announcement shows that from January 1, 2011 to March 31, 2011, the company is expected to increase 98% to 117% over the same period of last year, with a profit of between 1 billion and 1.1 billion yuan, and a basic earnings per share of 0.4848 yuan. -0.5333 yuan. The pre-increase in performance was mainly due to the strong market demand during the reporting period. The company increased its production and sales efforts and seized market opportunities. Therefore, sales revenue increased significantly compared to the same period of last year.

Sany Heavy Industry announced that its net profit for the first quarter increased by more than 135%. On April 12, Sany Heavy Industry announced the advance forecast for the first quarter of 2011. According to the notice, from January 1, 2011 to March 31, 2011, it is expected that the company's net profit attributable to owners of the parent company will increase by more than 135% from the same period of last year, and the net profit attributable to the parent company owner will be 1.107 billion yuan. Yuan, basic earnings per share is 0.22 yuan. The pre-increase in performance was mainly due to the further enhancement of the market competitiveness of the main products, the expansion of market share, and the expected increase in sales and profit.

Zoomlion's net profit for the first quarter is expected to reach RMB 1.7 billion to RMB 2 billion. Zoomlion recently announced the 2011 quarterly pre-income growth announcement, saying that due to the increase in market demand during the reporting period, Zoomlion’s main product has a significant synergy effect. Sales revenue in January-March increased significantly compared with the same period of last year. Zoomlion expects the net profit attributable to the parent company in the first quarter of 2011 to be 1.7 billion to 2 billion yuan, an increase of 130% to 170%.

The future growth of construction machinery will continue to grow slowly. At present, from the year-on-year growth rate of operating revenue and net profit of machinery sub-sectors (secondary sub-industry of CITIC Machinery) in 2010, the growth rate of operating income and net profit of construction machinery reached 58.64 respectively. % and 119.11%, a growth rate far exceeding that of other sub-sectors, exceeding the market’s general expectations and becoming a leader in industry growth. The growth was mainly due to the 4 trillion yuan in infrastructure investment launched by the country in response to the financial crisis. The large increase in demand for construction machinery and the fact that although the state has introduced a number of policies to regulate property, it has had little success. As a result, the area of ​​new construction of real estate, including affordable housing, has remained high. In addition, the growth rate of net profit of construction machinery sub-sectors far outpaced revenue growth, mainly due to the large increase in demand that made some products fall short of demand. The bargaining power of the leading companies in the industry has increased significantly, coupled with further improvement in the management level and R&D level, and the competitiveness has been significantly enhanced. , To capture part of the market share of foreign investment and joint venture brands.

During the “Twelfth Five-Year Plan” period, railways, water conservancy construction, affordable housing construction, and regional revitalization will become an important driving force for driving the growth of fixed asset investment. At the same time, with the rapid increase in labor costs, mechanical replacement will become the trend of manufacturing industry. Therefore, the industry believes that the machinery industry will continue to maintain stable growth, but the growth rate will slow down compared with the growth rate that has rebounded from the industry's low point after the financial crisis.

The economic situation in 2011 as the beginning of the “Twelfth Five-Year Plan” is more complicated. On the one hand, there are still more new projects to maintain growth, and on the other, inflationary countries continue to tighten monetary policy, along with interest rates and reserves. As the rate continues to rise, corporate financing difficulties and financing costs will all increase significantly, which will affect the profitability of the industry to a certain extent. The rise in upstream raw materials and labor costs will also affect the profitability of the industry to a certain extent.

High-end manufacturing industry will become the main force in the future development of machinery industry. From the perspective of machinery sub-sectors, the growth rate of operating machinery and net profit of construction machinery far exceeds that of other sub-sectors, becoming the leader in industry growth, and a compound increase during the “12th Five-Year Plan” period. Speed ​​can still reach about 20%. The high-end equipment manufacturing industry, which is one of the seven strategic emerging industries in the “Twelfth Five-Year Plan” period, will receive key support from the policy and is expected to become the main force for the future development of the machinery industry.

In the process of urbanization, the construction machinery industry will continue to be the sub-sector that has benefited the most from the increase in fixed asset investment. At the same time, with the determination of leading companies in the industry to enter overseas markets, the compound growth rate of the industry during the 12th Five-Year Plan period will still reach 20 %about. The high-end equipment manufacturing industry, as one of the seven strategic emerging industries in the “Twelfth Five-Year Plan”, is the foundation and core of the other six major industries and will receive the key support from the policies. The 12th Five-Year Plan for Machinery Industry recently announced that the growth rate of high-end equipment is higher than the average growth rate of the industry, and the compound growth rate is expected to reach about 25%. The plan also proposes that the localization rate of high-end equipment should be significantly improved. The key bottlenecks that restrict the development of high-end equipment must be eased. High-end equipment manufacturing represented by high-speed railways, aerospace equipment, marine engineering equipment, high-end CNC machine tools, and core basic parts will welcome major development opportunities. With the gradual introduction, digestion, absorption and independent innovation of related technologies, it will become the main force for the future development of the machinery industry.