Ningbo Power Hydraulic Motor Co., Ltd. [China (Mainland)]
Business Type:Manufacturer, Trading Company, Agent, Distributor/Wholesaler, Service City: Ningbo Province/State: Zhejiang Country/Region: China (Mainland)
Construction machinery industry: the construction of infrastructure investment-led
Haitong Securities [7.47 -3.49%]: Government to stimulate the economy and increased investment on the machinery industry is also a great positive role. Government has recently proposed investment plans include: (1) railway investment to the "Eleventh Five-Year" period to reach 2 trillion more than originally planned amount of investment 1.25Trillion increased 0.75Trillion.(2) the next 3-5 years transportation construction (including highways, waterways and terminal building) to invest up to 5 trillion more than the original "highways and waterways," Eleventh Five-Year Plan "" and the transport sector increased by long-term planning 2.8Trillion; (3) the next 2 years to increase investment in infrastructure 4Trillion.
The above-mentioned policy of engineering machinery industry in the formation of a direct positive. Construction machinery industry is mainly affected by the construction of infrastructure investment-led, with a high degree of investment in fixed assets related to the lower reaches of many customers for China Railway, China built infrastructure in the settlement enterprise. Of the three investment measures, will increase in 2009, 2010, engineering machinery purchases of about 500-600 billion annually, accounting for sales of construction machinery in 2008 (> 300 billion yuan) of 16.67% -20.00%.
Analysis of the specific benefit of engineering machinery products, railway investment of workers pile machinery (rotary drilling rigs, pile driver, DTH drilling rig), concrete equipment, machinery (pump, mixer, truck, mixing stations), lifting equipment (crawler cranes, truck crane and tower crane), earth and stone machinery (excavators, loaders, bulldozers) pulling larger role; highway investment Earthwork machinery (excavators, loaders, bulldozers), road machinery (rollers, grader, paver, etc.), earth and stone machinery, etc. pulling effect of the larger; waterways, construction of a logistics terminal equipment (forklifts, forklift truck, piled high machine) and lifting equipment (crawler cranes, truck crane and tower crane) the pulling effect of the larger.
Earthwork machinery (excavators, loaders, bulldozers), road machinery (rollers, grader, paver, etc.), earth and stone machinery, etc. pulling effect of the larger; waterways, construction of a logistics terminal equipment (forklifts, forklift truck, piled high machine) and lifting equipment (crawler cranes, truck crane and tower crane) the pulling effect of the larger.Concern the company has SANY [15.24 -0.78%], Zoomlion [12.53 -1.42%],xuke[15.50 -1.27%], Liugong [10.28 -0.39%], Shantui shares [8.52 0.24 %], a radius of bearing [10.72 -2.81%] and so on.
Ping'an Securities: Long-term growth trends remain unchanged. Times the debt crisis may affect the growth of China's construction machinery industry rhythm, but will not change China's construction machinery long-term growth drivers, China's Construction Machinery Industry-driven long-term growth factor is the urbanization of China's enormous manufacturing space and the world to the Chinese. Urbanization and to undertake the transfer of world manufacturing in the process of China's economic growth pattern of short-term it is difficult to change the stimulation of investment-led growth.
Fundamentals suffered a double blow. Domestic real estate industry and metallurgy mining industry is facing because of macro-control and the pressure of the bubble burst, the rapid investment growth slowed down or even decline in exports because sub-debt crisis is also a sharp decline, the industry suffered a double blow to growth.
4Trillion down posture. 4Trillion country put their investment plans into account, in 2009 four incremental investments in the sectors of basic and flat in 2007, taking into account the shorter period, as well as real estate and infrastructure construction has a certain divisibility, it is estimated that the demand for construction machinery volume to be higher than in 2007, but in order to meet 2008 sales more difficult.
Sub-product opportunities exist. Because of investment in infrastructure has obviously increased, and product demand growth will clearly differentiated, in the railway and highway construction, the application of a higher proportion of the drilling rig the election, automobile cranes, bulldozers, etc. is expected to continue to grow, in real estate development and application of the ratio of the mining industry higher concrete pump truck, loaders, excavators decline may occur.
At present, engineering machinery companies in the earnings ratio between 11 ~ 16 times higher than the historical 6 ~ 7 times the lowest price and international peers 3 ~ 6 times earnings, the current valuation of close to historic lows, and international peer-assessed value was significantly narrowing the gap. Taking into account the weight of China's urbanization and industrialization process is far from over, engineering machinery industry in the long-term growth potential remains huge. 4Trillion investment will greatly reduce the industry adjust pressure, pulling effect is expected to begin in the second quarter of next year show, we offer industry "recommend" rating.