Construction machinery industry good news. Zoomlion recently announced that it expects its 2019 net profit to grow by 112.89% to 122.79% year-on-year. Sany group previously announced that its equipment sector in 2019 terminal sales exceeded 100 billion yuan. Industry insiders said, the downstream infrastructure industry steady growth stack equipment product update cycle, pull construction machinery enterprises performance growth. In the first quarter of 2020, the construction machinery industry is expected to continue its steady growth and usher in a good start. Industry insiders pointed out that the increasing demand for infrastructure investment, the increasing incremental market, coupled with the inventory market equipment upgrade, construction machinery industry is expected to prolong the business cycle.
demand growth order increase
Statistics from the China construction machinery industry association show that from January to December 2019, the 25 mainframe manufacturers included in the statistics sold 235,700 Mining Machinery products, up 15.9 percent year on year. Product sales led the construction machinery industry performance growth. Sinopic securities expects sany's net profit to exceed 11 billion yuan in 2019, up more than 80 percent year on year.
Agency statistics show that in the first three quarters of 2019, the construction machinery sector's revenue was close to 200 billion yuan, and the net profit attributable to shareholders of listed companies was 19.83 billion yuan, up 76.7% year on year. Chen li, head of chuan CAI securities research institute, said the growth was mainly due to steady growth in downstream infrastructure.
Data released by the national bureau of statistics on January 17 showed that fixed asset investment (excluding rural households) nationwide in 2019 was 55.15 trillion yuan, up 5.4% from the previous year. Infrastructure investment grew by 3.8 per cent year on year.
& other; In addition to the state's investment in infrastructure, there are also major local projects, including subway transportation. As a result, orders from related companies have increased. Throughout the &; A leading enterprise in the construction machinery industry in charge of the China securities journal reporter. Investment in transportation, warehousing and postal services rose 3.4 percent in 2019 from the previous year, according to the national bureau of statistics. Investment in road transport, led by local governments, rose 9 per cent year on year.
In addition, the real estate industry will maintain steady growth in 2019, helping the construction machinery industry grow. According to the national bureau of statistics, investment in real estate development nationwide reached 13.22 trillion yuan in 2019, up 9.9 percent year-on-year. Specifically, from January to November, investment in real estate development and construction projects reached 6.83 trillion yuan, up 11.1% year on year.
In addition to orders from the infrastructure and real estate sectors, the machinery industry will also benefit from equipment due for renewal, industry insiders said. & other; Now the construction machinery on the market is mainly in 2012 that batch of equipment. With the upgrading of environmental regulation and the expiration of equipment life, these equipment with the service life of almost 10 years need to be replaced with more environmentally friendly guo6 equipment. Throughout the &;
expand overseas market
In 2019, the overseas sales performance of construction machinery industry has become a focus. Statistics from the China association of construction machinery industry show that China exported 26,600 Mining Machinery products from January to December 2019, up 39.4 percent year on year.
China development securities pointed out that leading enterprises in the overseas market for a series of layout, some enterprises have entered a deep stage of internationalization, overseas business is expected to become an important revenue growth point. Deppon securities believes that compared with the growth path of overseas giants, domestic leading enterprises after years of overseas market layout, the income obtained can smooth out the cyclical fluctuations.
Taking sany group, a leading enterprise in construction machinery, as an example, the relevant person in charge of the company introduced that in recent years, sany group's overseas business compound growth rate has reached 20%, the sales volume has exceeded 10 billion yuan for 6 consecutive years, and the company's export scale and growth rate have been consistently ranked at the forefront of the industry. From January to November 2019, sany group achieved international sales revenue of nearly 15 billion yuan, with a year-on-year growth of about 10%. The annual revenue is expected to exceed 2.5 billion U.S. dollars and reach a new level. The person in charge said that after more than a decade of layout, sany group has four industrial development bases in the United States, Germany, India and Brazil, covering Africa, asia-pacific, the Middle East, Latin America and other regional markets. In the overall sales of sany group, overseas market sales share of more than 40%. Of that, 70 percent of the revenue comes from. Bb0 ” Markets along the route.
Everbright securities research report shows that the construction machinery industry overseas market breakthroughs, mechanical automation has become the industry development trend. China's leading enterprises in the machinery industry have preliminarily completed the overseas market layout, the overseas market has become an important profit growth point. Xugong machinery in west Asia, central Asia, north Africa market share first. Where, pair “ Bb0 ” Market exports account for 70%. Industry insiders say technological advances and falling prices will help boost exports of construction machinery.
business cycle lengthening
Industry insiders said that from 2017, the construction machinery industry began to enter a rapid development phase. Excavator equipment first ushered in sales growth, followed by concrete equipment, tower machinery equipment into the growth period.
CDB believes that under the combined effect of replacement cycle and export increment, Excavator sales are expected to remain relatively high in 2020, and the business cycle is expected to be prolonged. Infrastructure investment growth is expected to pick up, driving demand for construction machinery; From the industry level, the market concentration increased, leading enterprises market share still have upside space; From the perspective of enterprise operation, concrete machines and cranes are expected to drive the growth of related companies in 2020.
Deppon securities pointed out that a large number of equipment life due to update; At the same time, environmental protection policies are tightening, and local governments have introduced policies to limit the use of high-emission non-road mobile machinery, promote the industry to phase out related equipment, and lengthen the business cycle of the industry.
In 2020, the pace of special bond issuance by local governments is expected to accelerate. The first quarter construction machinery industry is expected to usher in a good start.
By the end of 2019, the ministry of finance has issued a quota of 1 trillion yuan of special local government debt ahead of schedule, and demanded it. Early release, early use ” In order to ensure that it will be effective in early 2020, the physical workload will be formed and an effective economic boost will be formed as soon as possible.
Guoxin securities pointed out that local governments have the impetus to accelerate the construction of key projects at the beginning of the year, special debt application cycle is short, the issue cost is low, can help local areas to complete more quickly and comprehensively. Much starker choices-and graver consequences-in & throughout; Task. Up to now, in January 2020, all provinces and cities have planned to issue a total of 655.7 billion yuan worth of special bonds, accounting for 65.57% of the trillion yuan issued by the ministry of finance in advance.
Sun binbin's team at tianfeng securities expects new special bond issuance of 600 billion yuan to 700 billion yuan in January, 300 billion yuan in February and 100 billion yuan to 200 billion yuan in March. Wealth securities believes that in the first quarter of 2020, driven by special debt, the cash flow problem of downstream infrastructure projects is expected to be solved, the willingness of construction parties to buy construction machinery is expected to increase, and the construction machinery industry is expected to continue to maintain stable growth and usher in a good start.
Industry insiders said that the increasing demand for infrastructure investment and the increasing incremental market, coupled with the replacement of equipment stock market, the industry is expected to continue to achieve positive growth in the next two years. & other; In the next two years, the growth rate of Excavators and other early growth products will be a little lower, about 0%-10%. The power generation of concrete, construction cranes and other equipment will be 1-2 years later than that of excavators, and the future growth rate will be about 10%-30%. Throughout the &;
