Construction machinery sector has excess earnings in the second quarter

After rapid adjustment of the construction machinery sector is expected to appear opportunities. During the ups and downs of the broader market, we noticed that some of the industry sectors in the large investment sector exhibited a band operation pattern. After a number of consecutive trading days adjustments, it is expected that there will be active opportunities for individual stocks related to infrastructure construction in the future.

From the perspective of the industry, construction machinery is an indispensable construction machinery for infrastructure, construction, and various civil engineering projects. It mainly includes shovel transportation machinery, lifting machinery, pumping machinery, piling machinery, and pavement machinery. The theme of this year's construction machinery market is driven by 4 trillion investment. Among them, rotary drilling rigs and road machinery in pile-driving machinery are the direct beneficiaries of infrastructure construction, with the fastest growth. However, rotary drilling rigs and road surface machinery are relatively small in the industry and among mechanical companies, and therefore do not have a significant impact on the operation of companies. Lifting machinery is used in various types of real economy, such as factories, power equipment hoisting, high-speed railways, urban rail transportation, etc. Infrastructure construction has quickly driven the demand of cranes; shovel transportation machinery is mainly used for various types of infrastructure construction. , is the main beneficiary of 4 trillion investment.

The implementation of the policy of expanding domestic demand is the main driving force driving the growth of fixed asset investment in China. It is expected that with the further implementation of various policies, the growth rate of investment in fixed assets will further accelerate. From the data observation, in the first quarter of 2009, China’s total investment in fixed assets reached 2,812.9 billion yuan, a year-on-year increase of 28.8%. Among them, urban fixed asset investment reached 2,352,2 billion yuan, accounting for 83.8% of total investment, up 28.6% year-on-year; rural fixed asset investment was 456.7 billion yuan, accounting for 16.2% of total investment, up 29.4% year-on-year. From the above data, we can see that in the first quarter of 2009, China’s investment was mainly concentrated in urban areas, and rural investment was significantly lower. In the urban fixed assets investment, the state-owned holding investment was relatively high, at 1.0036 trillion yuan, a year-on-year increase of 37.7%; real estate development investment was 488 billion yuan, an increase of 4.1% over the same period of last year. The investment in urban fixed assets in China is mainly local project investment, with the investment amounting to RMB 2,155.5 billion, which represents a year-on-year increase of 28.5%, accounting for 91.06% of the total urban investment. The amount of investment in the central project was 210.7 billion yuan, accounting for less than 10% of the total.

In the short term, the industry recovered under the stimulation of infrastructure investment, and construction machinery had excess returns in the second quarter. With the gradual emergence of infrastructure investment results, rebound in real estate sales, and recovery in exports, construction machinery is expected to continue to improve in the second quarter. In the long term, the industry is facing a huge and continuously growing domestic market and a relatively large international cost advantage. Relatively optimistic about cranes, rotary drilling rigs, excavators, concrete equipment, bulldozers and loaders, it is recommended to pay attention to Sany Heavy Industry, Zoomlion, and XCMG Technology. In addition, Zhenhua, currently a pioneer in the field of offshore machinery equipment, has long been known for its port machinery. Heavy industry and so on.