Construction machinery industry is expected to recover from major projects

"Steady growth" ushered in the dawn for the depressed construction machinery industry. In just a few trading days, the construction machinery sector has become a dazzling star in the A-share market.

According to the data, construction machinery is an indispensable construction machinery for all kinds of construction projects, mainly including shovel transport machinery, lifting machinery, pumping machinery, piling machinery, road machinery and so on. In 2009, the theme market of construction machinery was driven by 4 trillion investment.

Before and after the 4 trillion investment, the performance of construction machinery listed companies changed significantly. According to the statistics of tonghuashun, in 2008, the slowdown of infrastructure construction led to the rapid cooling of construction machinery enterprises. The operating revenue of 8 representative construction machinery companies, including Sany Heavy Industry and Zoomlion, was 57.272 billion yuan, a year-on-year increase of 30%; the net profit was 4.2 billion yuan, a year-on-year decrease of 10%. However, after starting 4 trillion yuan of investment at the end of 2008, in 2009, the operating revenue of the above eight companies increased to 86.446 billion yuan, and the net profit reached 7.831 billion yuan.

At the beginning of this year, the situation of construction machinery industry was grim. Industry sales data show that in the first quarter of this year, sales of excavators, bulldozers, rollers and other products fell by about 40% year on year.

The performance of major enterprises in the domestic construction machinery industry has also changed from a substantial growth last year to a small growth or even decline. In the first quarter of this year, the above eight representative construction machinery companies achieved a total operating revenue of 44.785 billion yuan, a year-on-year decrease of 12.52%; net profit of 6.204 billion yuan, a year-on-year decrease of 11.82%.

However, the recent package of policies and measures to stabilize growth launched by the State Council is changing market expectations.

CICC said that if the infrastructure investment support can be sustained, the investment products will win the market, and the sectors with large infrastructure relevance will benefit more. For example, after the introduction of the $4 trillion stimulus policy in 2008, within one month, the cement sector outperformed the market by 18% and the construction machinery by 12%; within three months, the cement sector, the construction machinery sector and the construction engineering sector outperformed the market by 22%, 15% and 6% respectively.

According to the three steps of "approval of projects, allocation of funds and start-up investment", the first and second steps have been basically completed. In April, the national development and Reform Commission approved 328 projects, much higher than 173 in the same period last year. From January to April, the growth rate of funds in the national budget has also reached 28%, and financial funds have been put in place one after another. CITIC Securities believes that this means that from May to June, the growth rate of infrastructure investment represented by railway, highway and water conservancy is expected to pick up rapidly.

It is understood that the rise of high-speed railway construction in recent years has a great demand for construction machinery. Taking the Beijing Shanghai high-speed railway with a total investment of 220 billion yuan as an example, infrastructure accounts for 100 billion yuan, construction machinery procurement scale is about 20.9 billion yuan, and the average annual procurement during the construction period is about 4.2 billion yuan.

He Xiaowei, a researcher in aerospace securities industry, said that after entering may, the overall prosperity of the construction machinery market has improved, mainly based on the gradual improvement of the demand side. Water conservancy construction, high-speed rail resumption and new urban rail transit projects have brought support to the construction machinery industry, which is currently in a difficult situation.