Promote the Performance of Soaring Demand

By 4 trillion of investment lag, this year, China’s construction machinery industry is expected to usher in an ultra-high-speed growth, concrete pump truck, truck crane, lorry crane, loaders, excavators and other products often a shortage of hot sales scene.

CITIC Securities report shows that before May this year, construction machinery industry economy greatly exceeded expectations. May, excavators, cranes, loaders and bulldozers sales were up 103%, 56%, 83% and 99%, respectively, the first 5 months of growth in total 97%, 48%, 64% and 70%. Concrete Machinery sales revenue has reached the sum of the year 2009.

Zoomlion site on June 30 disclosure of information display, to benefit from favorable domestic and international economic situation, the rapid growth in demand for tower crane market, as of June 15, the company under construction crane sales (including overseas) with the same period in 2009 increase of 249.84%. Sanitation Equipment Corporation subsidiary company of the year sales data reporting month 1 to 6 have higher growth, of which sales rose 51%.

A brokerage analyst told China Securities Journal reporter and two subsidiaries filed the first half of transcripts from the reflection of the beautiful Zoomlion product sales booming trend, then the overall performance of listed companies have some boost effect. However, the tower crane business proportion of its machinery business and sanitation are not high proportion of total business, so the two business sales growth on the overall performance of Zoomlion how much positive impact, it is not easy to measure.

Benefited from strong demand recovery of assets into the ending of Xugong (000 425) performance has increased dramatically. The company notice said first-half results, expected net profit of 1.2 billion yuan, up 89.2 times, according to the adjusted data, an increase of about 35.6%. Data to adjust the background is in August 2009, the Company completed the major shareholder XCMG private placement transactions to purchase assets, so that the combined Xugong increase the scope, scale, profitability increased dramatically.

Good Prospect of the Industry Speed of Urbanization

With the booming production and sales of construction machinery enterprises operating in stark contrast to the situation, engineering machinery industry trend of the stock remains in the doldrums this year.

A researcher believes that the scale of fixed asset investment as a positive correlation with the strong cyclical industry, taking into account the scale of investment and real estate control policies sharply increasing the degree of market doubts about the prospects for construction machinery.

Kim Dong Yaguang Securities researcher in the country seems to promote the process of urbanization and the growth rate of space determines the future development of construction machinery industry. Over the past 9 years, the urbanization rate in China increased by nearly 10 percentage points less than the current urbanization rate to 50%.

Therefore, to achieve close to 60% by 2020 target, a large number of infrastructure need to build and improve. The data estimation, the urbanization rate increased one percentage point each, will add 6.6 trillion in investment demand. The acceleration of urbanization construction machinery industry will be long-term stable development momentum.

GF Securities researcher Qiu Shiliang that China construction machinery industry is in the late growth period, the economy in the short term the industry may be peaking. He predicted that after three years of construction machinery in China will initially lay the pattern, then the industry will enter a slow growth period.

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