“The beginning of the new year is very busy. Executives are running outside the market.” In the face of the visiting reporters, China Railway Construction Heavy Industry Corporation Limited(688425) deputy general manager, financial director and board secretary Tang Xiang said bluntly, “in the process of running the market at the beginning of the year, the business department felt that the bidding process of the owners was significantly accelerated in the west, Guangdong, Hong Kong, Macao, the Great Bay area, the Yangtze River Delta and other regions.”
In late February, the reporter saw in China Railway Construction Heavy Industry Corporation Limited(688425) Changsha base that the workshop was in full swing. All production lines were running at full power and working overtime to catch up with products.
In the huge workshop of China Railway Construction Heavy Industry Corporation Limited(688425) , the three arm rock drilling jumbo of sectorau railway project has been assembled and is entering the delivery link; The assembly of double shield rock tunnel boring machine (TBM) of overseas water diversion project is planned to start in March. The team is machining the gearbox to prepare for the assembly.
Since the second half of 2021, China’s construction machinery industry has been under pressure as a whole, and the internationalization breakthrough has unexpectedly become a “bright spot”. In the new year, many leading construction machinery enterprises have set the goal of doubling their international business.
“2022 may be a better year. The formulation of ‘moderately ahead of infrastructure investment’ is a great opportunity for the construction machinery industry.” Xiang Wenbo, chairman of Sany Heavy Industry Co.Ltd(600031) said.
major projects drive demand
After the Spring Festival holiday, a number of major projects have been started one after another, showing tiger vitality.
“The ‘hot spots’ of infrastructure investment this year are obvious: on the one hand, super projects such as sectorau railway and water conservancy projects have been accelerated and driven significantly; on the other hand, large-scale projects and new infrastructure in coastal areas are in full swing.” A person from a central enterprise told reporters.
According to reports, China Railway Construction Heavy Industry Corporation Limited(688425) developed tunnel boring machines and other major products have completely independent intellectual property rights, and are the leading manufacturers of full face tunnel boring equipment in the world. In addition, China Railway Construction Heavy Industry Corporation Limited(688425) has full process tunnel drilling and blasting construction equipment. Its products can go to the sectorau, drill deep mountains and cross the Gobi. It is known as the “special force” of engineering construction.
\u3000\u3000 “Our products can not only be used in the construction of urban rail and river crossing tunnels. Recently, the investment and construction of sectorau railways, water conservancy projects, pumped storage projects, intercity pipe network projects and other fields have been significantly strengthened, and the demand for various tunnel construction projects has increased significantly, which is very beneficial to the construction machinery industry, especially the demand pulling effect on underground engineering equipment.” Zeng Xipeng, Minister of business planning department, told reporters.
Taking the sectorau railway as an example, its bridge tunnel ratio is very high, and there is a great demand for large-size tunnel boring machine and professional tunnel drilling and blasting construction equipment. With the accelerated construction of sectorau railway, China Railway Construction Heavy Industry Corporation Limited(688425) orders for products from sectorau railway projects are pouring in, which also makes it feel “warm” earlier.
In early January 2022, Pingjiang pumped storage power station, the largest pumped storage power station under construction in Hunan, had a daily footage of 30.712 meters, setting a record for the highest daily footage of small-diameter TBM construction at the same level in China. The “Pingjiang” roadheader was built by China Railway Construction Heavy Industry Corporation Limited(688425) jointly with the owner and the construction unit.
Entering 2022, the operating rate and workload of construction machinery are picking up.
According to the data, in January 2022, the top three construction machinery and equipment with year-on-year increase in workload were frontal crane, stacker and truck crane. It is worth noting that the workload (hours) of the front crane has increased for three consecutive months since November 2021. At the same time, the operating rate of front crane, excavator, truck crane, crawler crane, mixer truck and pump truck exceeds 50%.
The excavator index report shows that from the data of all provinces, major projects under construction nationwide pay close attention to the construction period before the Spring Festival, and the construction of projects in many regions such as northeast China has performed well.
the proportion of exports reached a new high
On February 14, Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) earth moving machinery company held the first batch of export departure ceremony this year in Weinan Industrial Park, from which more than 100 earth moving machinery and equipment rushed to overseas markets. It is reported that the export departure includes Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) ze75e-10, ze135e-10, ze215e and other types of excavators, as well as 160 HP and 220 HP bulldozers, which are mainly sent to Southeast Asia, Central Asia and the Middle East.
This is an epitome of the “lively going to sea” of Chinese construction machinery enterprises.
According to statistics, in 2021, China’s Excavator export sales increased by 97.0% year-on-year, the export market situation continued to improve, and the export sales volume and export proportion reached a record high. In January 2022, the overseas performance of the construction machinery industry remained strong, including 7325 excavators, with a year-on-year increase of 104.9%.
“Last year, our international business increased by about 80% year-on-year; this year, our goal is to increase our international business by 100% year-on-year.” The person in charge of a construction machinery enterprise told reporters, “in January this year, our excavator export increased by more than 180% year-on-year.”
In 2021, Sunward Intelligent Equipment Co.Ltd(002097) exports increased significantly year-on-year; In January 2022, Sunward Intelligent Equipment Co.Ltd(002097) overseas business continued to develop, and the export volume of excavator increased rapidly.
Sunward Intelligent Equipment Co.Ltd(002097) relevant people believe that since 2021, benefiting from the efficient resumption of work and production of Chinese construction machinery enterprises, the rapid replacement of domestic brands in the export market, the continuous acceleration of the internationalization process of Chinese enterprises and the continuous expansion of overseas projects and overseas projects, the international expansion of Chinese construction machinery has ushered in a better situation. “With the continuous improvement of the comprehensive strength of Chinese construction machinery enterprises, the improvement of overseas sales channels and the optimization of global industrial supply chain and supporting system, the internationalization space of Chinese construction machinery enterprises will be wider.”
According to Li Bin, executive deputy general manager of Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) overseas companies, in recent years, China’s construction machinery enterprises have made breakthroughs in internationalization. The main reason is that “the gap between us and our European and American counterparts is becoming smaller and smaller, the international layout is becoming more and more perfect, and even achieved anti transcendence in unmanned, intelligent and electric”.
In addition, with the rise in the price of bulk commodities, the demand and orders of overseas mining increased significantly. Chinese construction machinery enterprises resume work and production rapidly, with guaranteed supply chain and timely delivery. “This makes many overseas customers choose us instead.” Li Bin said.
The industry is expected to improve quarterly
Although the construction machinery industry has entered a period of adjustment since April last year, the current round of construction machinery is quite different from the previous round of cycle fluctuations. A person from a listed company said: “after adjustment, the industry has become healthier. International business has taken the lead. I believe 2022 will usher in quarterly marginal improvement.”
Xiang Wenbo said that the construction machinery industry experienced five years of rapid growth from 2016 to 2021. “Moderate decline and even negative growth are in our expectation. This is the characteristic of the construction machinery industry. We don’t feel particularly great pressure.”
“Last year, our exports achieved substantial growth, coupled with innovation driven, increased market share and digital transformation, which hedged the downward impact of the Chinese market.” Xiang Wenbo said.
Xiang Wenbo stressed that the construction machinery industry is far from peaking. “First, there is still a lot of room for internationalization; second, many human needs for construction machinery have not been met. Strictly speaking, construction machinery and equipment is also Siasun Robot&Automation Co.Ltd(300024) – a substitute for labor , aging will bring us great demand for substitution; The third is the technology cycle. The traditional construction machinery based on fossil energy will be phased out. This market is large and will last longer; Fourth, the opportunities brought by future intelligence, fewer people and even no one. “
It is worth noting that leading construction machinery enterprises such as Sany Heavy Industry Co.Ltd(600031) , China Railway Construction Heavy Industry Corporation Limited(688425) , Xcmg Construction Machinery Co.Ltd(000425) , Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) , Sunward Intelligent Equipment Co.Ltd(002097) have defined the multi wheel drive strategy around the main business to smooth the periodic fluctuation as much as possible.
” Sany Heavy Industry Co.Ltd(600031) not only construction machinery, but also new energy, petroleum equipment, coal machinery, port machinery, sanitation machinery and so on.” Xiang Wenbo said.
