The construction machinery industry is no longer far behind

In 2012, the growth rate of the industry's net profit is expected to fall to 5-15%. On the one hand, the growth of investment in commercial housing, high-speed railways, etc. will decline; on the other hand, factors such as the change of government and the “Twelfth Five-Year Plan” will boost the investment in affordable housing, water conservancy projects, environmental protection, and other livelihood projects. It is expected that urban fixed assets will be maintained in 2012. The growth rate of investment will drop slightly to about 20%, and the growth rate of net profit of machinery industry will drop to 5-15%.

The construction machinery industry needs to wait for the second half of next year to pick up. The business climate is still in a downturn in the short-term and is expected to rebound in the second half of next year. The construction machinery industry is still difficult to outperform the broader market in the short term. Medium and long-term investors can start to pay attention to the industry leading companies whose valuation is close to historical lows: Sany Heavy Industry. The energy equipment industry as a whole maintains a high degree of economic growth, and the medium and long-term development prospects are promising. (1) The coal machinery industry will maintain a stable growth rate of around 20% during the “Twelfth Five-Year Plan” period, and it will focus on companies that have successfully transformed to full-scale mining and high-end technologies: Tiandi Technology and Zhengji Coal Machinery. (2) Coal chemical and natural gas industries will usher in a period of rapid development.

Railway equipment and nuclear power equipment are concerned about the relevant national policy signals next year. Short-term suspension of EMU tenders, tenders for trucks and subway vehicles are still in the rising period; next year they are concerned about railway investment planning and EMU tendering. The nuclear power project is expected to restart at the beginning of next year and will benefit companies such as heavy machinery and related equipment.

In the post-financial crisis era, the fluctuations in the global economy, the shift in the “active zone” of the market, the rise of emerging industries, and the offensive and defensive practices of traditional giants are all reshaping the new pattern of the machinery industry and pushing the entire industry forward. Unprecedented historical stages and junctures. The machinery industry is facing new opportunities and challenges. According to the survey results, it can be seen from the chart that more than half (51.9%) of the twelve industries in the machinery industry are very optimistic about the agricultural machinery industry; the basic components industry is closely followed by 40.3% of the respondents. It also expressed confidence in the basic parts industry; the machine tool industry ranked third, and nearly 30% of respondents (27.8%) were optimistic about the machine tool industry. The number of entrepreneurs who are optimistic about the internal combustion engine industry is less than 10%, and the confidence index is the lowest. In recent days, the international economic situation has been sluggish, and institutions have successively lowered the growth rate of the world economy and China’s economy. Some scholars and institutions are pessimistic about the prospects of the Chinese economy. Although the current economic situation is not optimistic, officials and scholars have warned businesses to postpone expansion. For this issue, the survey results show that there are still 42.3% of companies believe that next year's performance will be better than this year. 32.6% of respondents believe that they can be equal to 2011, while about 10.5% of companies are pessimistic. Another 14.4% of the companies did not give a clear answer and chose the "uncertain" option.

The year 2012 is the second year of the “Twelfth Five-Year Plan”. All kinds of industrial development plans are put in place. Encouraging and guiding private enterprises to invest in the development of strategic emerging industries implementation rules are on the right track. Therefore, investment growth throughout the year is not pessimistic. The problem of the overall operating status of the industry to which the enterprise belongs, and the attitude of the company to its industry is obviously different. A total of 33.7% of decision makers are full of confidence and believe that the industry of their own business will become even better in the coming year. 36.5% of the decision makers indicated that the industry conditions were the same as in 2011. 15.3% of policymakers are pessimistic and believe that the industry situation will become worse. Approximately 14.4% of corporate decision makers gave an "uncertain" answer.