The construction machinery industry is expected to achieve a good start in the first quarter

Release date 2024-12-06 15:09:52 Reading 0

　　The construction machinery industry is expected to achieve a good start in the first quarterused excavator for sale used excavator for sale

　　Good news is frequent in the construction machinery industry. Zoomlion recently announced that it expects its net profit attributable to the parent company to increase by 112.89% -122.79% year-on-year in 2019. Sany Group previously announced that its equipment segment's terminal sales exceeded 100 billion yuan in 2019. Industry insiders say that the steady growth of downstream infrastructure industry combined with the equipment product update cycle has driven the performance growth of construction machinery enterprises. In the first quarter of 2020, the construction machinery industry is expected to continue stable growth and usher in a good start. Industry insiders point out that the demand for infrastructure investment is increasing, the incremental market is constantly growing, and coupled with equipment updates in the existing market, the business cycle of the construction machinery industry is expected to be prolonged.used excavator for sale used excavator for sale used excavator for

　　Demand growth leads to an increase in ordersused excavator for sale used excavator for sale used excavator for sale used excavator for sale

　　According to statistics from the China Construction Machinery Industry Association, a total of 235700 mining machinery products were sold by 25 host manufacturing enterprises included in the statistics from January to December 2019, a year-on-year increase of 15.9%. Product sales drive the performance growth of the construction machinery industry. Guojin Securities predicts that Sany Heavy Industry's net profit in 2019 will exceed 11 billion yuan, a year-on-year increase of over 80%.

　　According to institutional statistics, in the first three quarters of 2019, the revenue of the construction machinery sector was nearly 200 billion yuan, with a net profit attributable to shareholders of listed companies of 19.83 billion yuan, a year-on-year increase of 76.7%. Chen Li, director of Chuancai Securities Research Institute, said that the performance growth of the construction machinery industry is mainly due to the stable growth of downstream infrastructure.used excavator for sale

　　According to the data released by the National Bureau of Statistics on January 17, the national fixed assets investment (excluding farmers) in 2019 was 55.15 trillion yuan, an increase of 5.4% over the previous year. Among them, infrastructure investment increased by 3.8% year-on-year.used excavator for sale

　　In addition to national investment in infrastructure, there are also major projects at the local level, including subway transportation. As a result, orders from related companies have increased, "said the head of a leading enterprise in the construction machinery industry to a reporter from China Securities Journal. According to data from the National Bureau of Statistics, investment in the transportation, warehousing, and postal industries in China increased by 3.4% in 2019 compared to the previous year. Among them, investment in the road transportation industry led by local governments increased by 9% year-on-year.used excavator for sale used excavator for sale

　　In addition, the real estate industry maintained a steady growth rate in 2019, contributing to the growth of the construction machinery industry. According to data from the National Bureau of Statistics, the total investment in real estate development in China in 2019 was 1.322 trillion yuan, a year-on-year increase of 9.9%. Specifically, from January to November, the cumulative investment in real estate development and construction projects reached 6.83 trillion yuan, a year-on-year increase of 11.1%.

　　Industry insiders say that in addition to the orders brought by the infrastructure and real estate industries, equipment expiration updates will also contribute to the development of the machinery industry. The construction machinery on the market now mainly consists of the batch of equipment from National III in 2012. With the upgrading of environmental supervision and the expiration of equipment service life, these equipment with a service life of about 10 years need to be replaced with more environmentally friendly National VI equipmentused excavator for sale used excavator for sale used excavator for sale

　　Expand overseas marketsused excavator for sale used excavator for sale used excavator for sale used excavator for sale

　　In 2019, the overseas sales performance of the construction machinery industry became a highlight. According to statistics from the China Construction Machinery Industry Association, the export sales of various types of excavation machinery products in China reached 26600 units from January to December 2019, a year-on-year increase of 39.4%.used excavator for sale used excavator for sale used excavator for sale used excavator for sale

　　Guokai Securities pointed out that leading enterprises have made a series of layouts in overseas markets, and some enterprises have entered the stage of deep internationalization. Overseas business is expected to become an important source of revenue growth. Debon Securities believes that compared to the growth path of overseas giants, domestic leading enterprises, after years of overseas market layout, can generate income that can smooth out 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 has achieved a compound growth rate of 20%, with sales exceeding 10 billion yuan for six consecutive years. The company's export scale and growth rate have remained at the forefront of the industry. From January to November 2019, Sany Group achieved international sales revenue of nearly 15 billion yuan, a year-on-year increase of about 10%, and is expected to exceed 2.5 billion US dollars for the whole year, reaching a new level. The person in charge stated that after more than ten years of layout, Sany Group has four major industrial research and development bases in the United States, Germany, India, Brazil, covering markets in Africa, Asia Pacific, Middle East, Latin America and other regions. In the overall sales of Sany Group, the overseas market sales share exceeds 40%. Among them, 70% of the revenue comes from the markets along the "the Belt and Road".used excavator for sale used excavator for sale used excavator for sale

　　According to a research report by Everbright Securities, the overseas market of the construction machinery industry has repeatedly made breakthroughs, and mechanical automation has become a development trend in the industry. The leading enterprises in China's machinery industry have initially completed their overseas market layout, and overseas markets have become an important profit growth point. XCMG Machinery has the highest market share in West Asia, Central Asia, and North Africa. Among them, exports to the "the Belt and Road" market accounted for 70%. Industry insiders say that technological advancements and price reductions in products are conducive to promoting the export of construction machinery and equipment.used excava used excavator for sale used excavator for sale used excavator for saletor for

　　Extended business cycleused excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale

　　Industry insiders say that since 2017, the construction machinery industry has entered a stage of rapid development. Excavator equipment first saw sales growth, followed by concrete equipment, tower crane equipment, and other replacements entering the growth period.used excavator for sale used excavator for sale used excavator

　　Guokai Securities believes that under the combined effect of replacement cycle and export increment, excavator sales are expected to continue to remain relatively high in 2020, and the industry's business cycle is expected to be prolonged. The growth rate of infrastructure investment is expected to rebound, driving demand for construction machinery; From an industry perspective, the market concentration has increased, and there is still room for the market share of leading enterprises to rise; From the perspective of enterprise management, concrete machines and cranes are expected to relay excavators in 2020, driving the performance growth of related companies.used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale

　　Debon Securities pointed out that a large number of equipment have reached the end of their lifespan and are undergoing updates; At the same time, environmental policies are tightening, and local governments have introduced policies to restrict the use of high emission non road mobile machinery, promoting the gradual elimination of related equipment throughout the industry and prolonging the industry's business cycle.used excavator for sale used excavator for sale used excavator for sale used

　　In 2020, the pace of issuing local government special bonds is expected to accelerate. The construction machinery industry is expected to have a good start in the first quarter.used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale

　　At the end of 2019, the Ministry of Finance issued a quota of 1 trillion yuan for local special bonds in advance, and required early issuance and use to ensure that they would take effect in early 2020, creating a physical workload and effectively driving the economy as soon as possible.

　　Guoxin Securities pointed out that local governments have the motivation to accelerate the construction of key projects at the beginning of the year. The short application cycle and low issuance cost of special bonds can help various regions complete the "13th Five Year Plan" tasks faster and more comprehensively. As of January 2020, a total of 655.7 billion yuan of special bonds have been planned to be issued by various provinces and cities across the country, accounting for 65.57% of the trillion yuan quota issued by the Ministry of Finance ahead of schedule. The issuance time has been significantly advanced, which is conducive to the early start of eligible projects.used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale

　　Tianfeng Securities' Sun Binbin team expects to issue special bonds worth 600 billion to 700 billion yuan in January, 300 billion yuan in February, and 100 billion to 200 billion yuan in March. Fortune Securities believes that in the first quarter of 2020, driven by special bonds, the cash flow problem of downstream infrastructure projects is expected to be solved, and the willingness of construction companies to purchase construction machinery and equipment is expected to increase. The construction machinery industry is expected to continue to maintain stable growth in the first quarter of 2020 and usher in a good start.used excavator for sale used excavator for sale

　　Industry insiders indicate that the demand for infrastructure investment is increasing, the incremental market is constantly growing, and coupled with the replacement of existing market equipment, the industry is expected to continue to achieve positive growth in the next two years. The growth rate of products such as excavators that have grown earlier will be slightly lower in the next two years, about 0% -10%. Equipment such as concrete and construction cranes will start working 1-2 years later than excavators, and the future growth rate will be about 10% -30%used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale

For more used excavator for sale information, click: https://www.js-excavator.com/

used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale