Event:
According to the industry statistics of China Construction Machinery Industry Association, 24483 mining machinery products were sold in February 2022, a year-on-year decrease of 13.5%. Among them, the sales volume in the Chinese market was 17052 units, a year-on-year decrease of 30.5%; The export sales volume was 7431 units, with a year-on-year increase of 97.7%.
In February, the decline of excavators continued to narrow, and exports continued to nearly double
In February 2022, 24483 sets of various excavation machinery products were sold, with a year-on-year decrease of 13.5%. Among them, the sales volume in the Chinese market was 17052 units, a year-on-year decrease of 30.5%; The export sales volume was 7431 units, with a year-on-year increase of 97.7%.
In February, China sold 17052 units, a year-on-year decrease of 30.5%, and the growth rate of China’s sales narrowed significantly month on month.
In February, the export sales volume was 7431 units, with a year-on-year increase of 97.7%, which continued to nearly double. The export sales volume in February accounted for 30.35% of the sales volume in the current month.
From January to February, 40090 sets of various mining machinery products were sold, a year-on-year decrease of 16.3%. Among them, 25330 units were sold in the Chinese market, with a year-on-year decrease of 37.6%; The export sales volume was 14760 units, a year-on-year increase of 101.1%.
The annual GDP growth target was 5.5%, and the infrastructure grew steadily to improve the demand for construction machinery
At the two sessions, Premier Li Keqiang pointed out in his 2022 government work report that the main expected goals of this year’s development are: China’s GDP growth of about 5.5%; In the face of new downward pressure, we should put steady growth in a more prominent position.
The GDP growth target of 5.5% this year is optimistic, which shows the determination and confidence of the central government to stabilize growth. We believe that in order to achieve the expected GDP target this year, the stable growth of infrastructure will give full play to its cornerstone role. The infrastructure investment will be carried out moderately in advance, and the demand release rhythm of the construction machinery industry is expected to be advanced, and the demand is expected to improve marginally.
This year, 3.65 trillion yuan of local special bonds will be arranged, superimposed on the special bonds in the fourth quarter of last year. This year, there are sufficient funds to promote the high growth of infrastructure investment
The government work report of the two sessions pointed out that we should make good use of government investment funds to drive the expansion of effective investment. This year, it is planned to arrange 3.65 trillion yuan of special bonds for local governments. Start a number of qualified major projects, new infrastructure, transformation of old public facilities and other construction projects.
This year, it is planned to arrange 3.65 trillion yuan of special bonds for local governments, which is the same as last year. In addition, most of the 1.2 trillion special bonds issued in the fourth quarter of 2021 will be put into use in the first quarter of this year. On the whole, local special bond funds are abundant this year, and the strength is much greater than last year.
In the first two months of this year, the issuance scale of new special bonds will reach 877.5 billion yuan, while the issuance of new special bonds will not begin until March 2021. This year, the issuance of special bonds is significantly ahead of schedule, and the issuance intensity is significantly higher than that in 2021. From January to February in 2022, the total issuance of local bonds was 1.21 trillion yuan, significantly higher than 418.06 billion yuan in the same period in 2021. Among the new local special bonds in February, the scale of special bonds invested in infrastructure was 234008 billion yuan, accounting for 71.8%, accounting for the leading position. Data show that local special bonds are issued in advance, with great efforts to promote the steady growth of infrastructure and enter the accelerated implementation stage.
We believe that the demand for construction machinery is expected to improve marginally this year. The share prices and valuations of Listed Companies in relevant industrial chains are low. After a long-term in-depth adjustment last year, with the marginal improvement of fundamentals, it is expected to usher in investment opportunities of oversold rebound. It is suggested to pay attention to the listed companies Jiangsu Hengli Hydraulic Co.Ltd(601100) , Yantai Eddie Precision Machinery Co.Ltd(603638) , two leading forklift companies Hangcha Group Co.Ltd(603298) , Anhui Heli Co.Ltd(600761) , Xcmg Construction Machinery Co.Ltd(000425) , and Zhejiang Dingli Machinery Co.Ltd(603338) .
Risk tips: 1: the growth rate of infrastructure and real estate investment is lower than expected; 2: Export demand is lower than expected; 3: Industry competition intensifies; 4: Raw material prices continued to rise.
