Recently, according to the latest data released by the Excavation Machinery Branch of the China Construction Machinery Industry Association, the manufacturer of Liugong excavator parts calculated that in 2018, 25 main engine manufacturing enterprises included in the calculation sold 203420 units of various excavation machinery products, an increase of 45.0% year-on-year. During this period, the sales volume of domestic shopping malls was 184190 units, an increase of 41.1% year-on-year; The export sales volume was 19100 units, an increase of 97.5% year-on-year.
Liugong excavator accessories manufacturer pointed out that the construction machinery profession has recovered slightly since 2018, benefiting from the demand for real estate and infrastructure investment, the demand for "the Belt and Road" exports and the renewal of old machinery. In 2018, the annual sales of excavators reached 203000 units, surpassing the peak of 178000 units in 2011 and setting a new historical record. The shopping mall presented a new feature of "strong peak season and not weak cold season". In this round of recovery, major automakers have been able to maintain rational emotions and have not shown large-scale capacity expansion or vicious competition. The earnings ability of the primary enterprise in the profession continues to increase, the balance sheet is gradually recovering, and the career cycle is expected to extend. In this context, concept stocks related to construction machinery are also expected to continue to be favored by the market and once again stand on the trend.
According to data from Tonghuashun, Liugong excavator parts manufacturer found that since 2019, the construction machinery industry sector represented by excavators has shown strong performance, with a total of 21 constituent stocks in the sector. Among them, 20 constituent stocks have seen a cumulative increase in stock prices, accounting for 95.24%. Runbang Co., Ltd. (8.22%), China Railway Industry Corporation (8.19%), Taiyuan Heavy Industry (7.62%), Shanhe Intelligent (6.13%), Tianqiao Crane (6.10%), Huadong Heavy Machinery (5.69%), CITIC Heavy Industry (5.38%), Zhenhua Heavy Industry (5.36%) and other eight stocks have accumulated the highest gains during the period, all reaching more than 5%. Anhui Heli (4.91%), Tianye Tonglian (4.30%), Norinco (4.23%), Dalian Heavy Industry (4.05%), and Frank (3.94%) and other five stocks have followed closely behind, with a cumulative increase of more than 3% since the beginning of this year.
In terms of fund flow, the active layout of large order funds on the market has become an important driving force for the strong upward trend of the construction machinery sector. A total of 15 constituent stocks have completed net inflow of large order funds within the year. Specifically, China Railway Industry had the highest net inflow of large order funds within the year, reaching 96.028 million yuan. Tianye Tonglian (15.5456 million yuan) and Liugong (13.5828 million yuan) also faced competition from large order funds of more than 10 million yuan during the period. In addition, XCMG Machinery (7.838 million yuan), CITIC Heavy Industry (5.4625 million yuan), Anhui Heli (4.3519 million yuan), Shanhe Intelligent Energy (4.288 million yuan), and Tianqiao Crane (4.2435 million yuan). The net amount of large orders for 5 individual stocks within the year also exceeded 4 million yuan, and the above 8 individual stocks calculated to have earned 151 million yuan in revenue.
Liugong excavator parts manufacturer has seen the results, and now a total of 8 construction machinery professional listed companies have disclosed their 2018 annual report performance forecasts. Among them, 5 companies are expected to have good results, and Shanhe Intelligent (235.00%) and Huadong Heavy Machinery (241.08%) are expected to double their net profits year-on-year during the reporting period. From the upper limit of the forecast net profit, Shanhe Intelligent (543.6221 million yuan), Huadong Heavy Machinery (450 million yuan), Tianqiao Crane (140.208 million yuan), Runbang Co., Ltd. (106.3425 million yuan) and other 4 companies are expected to reach a net profit of over 100 million yuan for the whole year of 2018.
Regarding the future investment strategy of the construction machinery sector, LiuGong excavator parts manufacturer pointed out that it is expected that the recovery of the construction machinery industry will enter the second half in 2019. It is expected that downstream real estate investment will tend to stabilize, and efforts to fill the gaps in infrastructure are expected to increase. Multiple major engineering projects are expected to accelerate and continue to promote the steady sale of excavators. Construction machinery products such as cranes and concrete pump trucks are expected to meet the demand for excavation machine updates. In addition, with stricter environmental policies, excavation machines will comply with the National IV emission standards from 2020, further driving the upgrading of old equipment. The "the Belt and Road" export may continue to improve. In 2019, the construction machinery industry will continue to recover with sufficient momentum, and the career cycle is expected to extend. With the continuous improvement of concentration, leading enterprises will have more advantages in this round of recovery. Suggest paying attention to relevant standards such as Sany Heavy Industry, Hengli Hydraulic, Zhejiang Dingli, etc.
Company Address: No. 379, Junjin Road, Zhangpu Town, Kunshan City
Contact: Mr. Chen
Phone：18112623390
landline：0512-36863852