The machinery industry: the boom is recovering from a high level of profitability

The machinery industry: the boom is recovering from a high level of profitability

2017/5/5 9:27:34 Browsing times:178


     According to the latest data: construction engineering machinery cumulative sales hit a record high, year-on-year growth in exports is also no signs, profitability is still maintaining high level;China's engineering machinery is at a stage of global expansion, and the world's engineering machinery industry is moving towards China, and the "cyclical" feature will be weakened.
     The year 2007 has seen a big increase, and 2008 is expected to replicate last year's growth.The seven engineering machinery companies that have published the report have shown rapid growth in revenue, up 35.9 percent year on year.Operating profit was up 39 per cent year on year, higher than the main business growth. 
     The increase in sales growth was high, and the gross margin was restored.By 2008 in February, the latest data show that the rise in sales of construction machinery industry is still in good channels, total sales rose 57.43% in February, at new highs in recent years.Gross margin in the November plunged to 16.03% last year, rebounded to 18.28% in February this year, though still lower than the first half of 2007, but higher than before and 2006 gross margin level.
     We will encourage independent innovation and government procurement of imported products will be reviewed.On January 15, 2008, shall be formulated by the ministry of finance of the government purchasing products of self-directed innovation and order management method "and the measures for the administration of the government procurement imports started at the same time, new regulations explicitly encourage government priority purchasing domestic independent innovation products, and conduct the audit management of government purchasing imported products.The implementation of the "management method" will encourage enterprises to pay more attention to independent innovation, enhance the international competitiveness of products in shorten the gap with foreign similar products at the same time, in a short period of time as far as possible to achieve transcendence.
     Attention of engineering machinery parts industry.At present, the engineering machinery industry in our country is at a high stage of operation, but the lag of the local core components is seriously constraining the development of the industry.The branch of the China engineering industry association has held a workshop for two years in a row, and called on the industry to discuss the countermeasures.The development of the domestic supporting industry will help it to get rid of its foreign suppliers, and the cost will be effectively controlled.
     The acquisition of mergers and acquisitions in the construction machinery industry was quietly emerging.Under the background of manufacturing shift to China, through the purchase of listed companies can improve products, improve the production and the sales strategy for regional layout, do big sales scale, and stronger brand to participate in international competition.Therefore, although the acquisition and acquisition in the short term contributes little to the performance of the company, it is beneficial to the consolidation and concentration of the engineering machinery industry in the long run.
First, company and industry dynamics
Company dynamics and ratings
     Most of the construction machinery listed companies operating income in 2007 showed a rapid growth, but because of the prices of raw materials, the part of the decline in gross margin, profit growth is less than the main business revenue growth.The first half of the year is expected to be more than 20 per cent, according to the price of steel tracked, putting pressure on the growth of the engineering machinery sector.
      Liugong: steady growth is in control.In 2007, the company's sales growth exceeded expectations and the profitability level remained stable.Hydraulic excavator sales are growing faster than those in the industry, and the gross margins are rising.Exports were up 91 per cent year on year, with key markets advancing major breakthroughs.In January 2008, loader sales rose 24.2 per cent year on year, up from 22.6 per cent in the same period a year earlier, indicating that the loader sales did not slow down.In january-february 2008, hydraulic excavators sold 234 units, up 41 percent from the same period a year ago, and also up from 13 percent in the same period last year.Exports, according to the data provided by the engineering machinery trade network, export hydraulic excavator in February 1, 2008-36 units, 2 sets of much higher than the same period last year, exports will continue to high growth for the year.
      Anhui synergy: refinancing is suffering from a cold snap in the stock market.In 2007, the company realized revenue of 3.4 billion yuan, a year-on-year increase of 33.8%.Because of the sharp rise in raw materials, full-year profit growth of 29 per cent in 2007 was lower than the main business revenue.The export market has not been affected by the us subprime crisis, and the foreign sales ratio has continued to expand, accounting for 27.3 per cent of the company's revenues in 2007.The company's board of directors issued no more than 5, 000 shares of A in the public offering, but the market was divided.We think the refinancing option is in the company's long-term interest, and $1 billion is not big, but the market is overreacting in the current climate.We also believe that the choice of convertible bonds may be a perfect solution for the company's very low financial ratios and good cash flow.
      The three major brands of zoomlion.In December 2007, zoomlion announced the launch of a unified brand.In 2008, the two brands of "pu yuan" and "zhongbiao", a subsidiary of zoomlion, were phased out.In December 2008, the unified brand will be completed, and all products of zoomlion will be unified into the "zhonglian" brand.Brand and unified for zoomlion international development in the future as well as the realization of the strategic planning intention have laid a solid foundation of brand management, brand competitiveness of ascension is consistent with the enterprise growth of demand.
Industry dynamics
(1) encourage indigenous innovation and government procurement of imported products will be reviewed
On January 15, 2008, shall be formulated by the ministry of finance of the government purchasing products of self-directed innovation and order management method "and the measures for the administration of the government procurement imports started at the same time, new regulations explicitly encourage government priority purchasing domestic independent innovation products, and conduct the audit management of government purchasing imported products.
Order according to the government purchasing products of self-directed innovation and management method ", the first purchase refers to the production and development of domestic enterprises or research institutes, temporarily do not have market competitiveness, but meet the requirements of the development of national economy, represents the development direction of advanced technology for the first time to market products, through the way of government procurement by purchasing or government purchasing behavior in the first place.Order refers to the country needs a significant innovation research and development of products, technology, soft science research, etc., through the government procurement mode geared to the needs of the whole society to determine the behavior of the research and development and production institutions.
At present, the machinery industry in our country is developing rapidly, but it is under-invested in independent innovation and has been discriminated against in the project tender.The government purchasing products of self-directed innovation and order management measures for the implementation of the will encourage enterprises pay more attention to independent innovation, enhance the international competitiveness of products in shorten the gap with foreign similar products at the same time, in a short period of time as far as possible to achieve transcendence.
(2) the engineering machinery parts industry is concerned
At present, the engineering machinery industry in our country is at a high stage of operation, but the lag of the local core components is seriously constraining the development of the industry.Such as engineering machinery host (such as hydraulic excavator, the rotating drill and crawler crane, etc.) required by the pump, motor, valve core and reducer fittings over-reliance on imports, but another foreign company must first meet the needs of domestic enterprises, the second to meet the needs of foreign companies in China, and then considering the need of local enterprises in our country, and generally not negotiable price.This game has become more and more obvious in the face of China's engineering machinery production enterprises, which has aroused great concern in the industry.The branch of the China engineering industry association has held a workshop for two years in a row, and called on the industry to discuss the countermeasures.
With the industry's emphasis on the distribution industry, the industry is expected to develop rapidly.First, we will gain the support from the host manufacturers, and the product reliability and overall quality will improve significantly.Second, procurement will also give priority to domestic enterprises.The development of the domestic supporting industry will help it to get rid of its foreign suppliers, and the cost will be effectively controlled.
(3) the construction engineering machinery industry -- the sales growth rate has been high and the gross margin has been restored
By 2008 in February, the latest data show that the rise in sales of construction machinery industry is still in good channels, total sales rose 57.43% in February, at new highs in recent years.Gross margin in the November plunged to 16.03% last year, rebounded to 18.28% in February this year, though still lower than the first half of 2007, but higher than before and 2006 gross margin level.
(4) the acquisition and acquisition of the engineering machinery industry emerged in 2008
In 2008, liugong bought anhui bengbu to push amway engineering machinery co., LTD. Into the crane market.In March 2008, zoomlion's acquisition of loss-making shaanxi xinhuang-industrial machinery co., LTD., which was in charge of the loss, made an increase in its capital, and was seeking to enter into the earthwork machinery.At the same time, zoomlion joint hony and other common investors to purchase bidding mode, main business for the concrete with handling equipment Italy CIFA. S.P.A a 100% stake in the zoomlion to buy its 60% stake.CIFA, a family-owned company founded in 1928, was the third largest supplier of concrete machinery in the world, with revenues of $470m in 2007.Its main operations are in Italy and Europe, accounting for more than 50 per cent of its revenues.If successful, zoomlion can not only transcend sany concrete machinery industry of the world's third position, will also be closer and the world the first German Portsmouth meister gap;In the meantime, the acquisition will also help zoomlion to expand its market share in Europe with the existing CIFA sales channel.Under the background of manufacturing shift to China, through the purchase of listed companies can improve products, improve the production and the sales strategy for regional layout, do big sales scale, and stronger brand to participate in international competition.Therefore, although the acquisition and acquisition in the short term contributes little to the performance of the company, it is beneficial to the consolidation and concentration of the engineering machinery industry in the long run.