The construction machinery industry is steadily entering a new round of growth cycle
Recently, the construction machinery industry has ushered in multiple positive signals, and market data shows that the industry is steadily entering a new round of growth cycle. With the increasing investment in infrastructure, the release of equipment renewal demand and the continuous expansion of overseas markets, the industry's prosperity has increased significantly. The following are the hot topics and structured data analysis of the industry that have been hotly discussed across the Internet in the past 10 days:
1. Policy-driven and market demand are working together
The National Development and Reform Commission recently made it clear that it will increase infrastructure investment and focus on promoting major projects in the fields of transportation, water conservancy, energy, etc. At the same time, many places have launched subsidies for equipment exchange for new equipment, directly stimulating the demand for construction machinery. According to statistics, the year-on-year growth rate of excavator sales in May has maintained positive growth for three consecutive months.
| index | Data for May 2024 | Year-on-year changes |
|---|---|---|
| Excavator sales (table) | 18,750 | +12.3% |
| Loader sales (table) | 9,860 | +8.7% |
| Crane sales (Taiwan) | 3,420 | +15.6% |
2. Accelerate transformation of intelligence and electrification
The industry's leading companies have recently released new electrification products, and the proportion of electric products by manufacturers such as Sany Heavy Industry and XCMG Machinery has exceeded 20%. In terms of intelligence, the application cases of 5G remote control and autonomous driving technology have increased significantly, and the number of online discussions on related topics has increased by 45% month-on-month.
| enterprise | The proportion of electrified products | Technical breakthrough |
|---|---|---|
| Sany Heavy Industry | twenty three% | Battery swap mode excavator |
| XCMG Machinery | twenty one% | Pure electric crane |
| Zoomlion | 18% | Hydrogen fuel cell mixing truck |
3. Overseas markets become new growth pole
Customs data shows that the export volume of construction machinery reached US$21 billion from January to May, an increase of 22% year-on-year. Among them, the Southeast Asian market grew by 35%, and demand in the Middle East surged by 40% due to the infrastructure boom. Several companies said they are expanding overseas production bases to cope with order growth.
4. Active capital market performance
The construction machinery sector index rose 7.2% in the past 10 days, outperforming the market by 4.5 percentage points. Institutional research reports show that the industry's average price-to-earnings ratio has been restored from 15 times to 18 times, and leaders such as Sany Heavy Industry have been continuously increasing their holdings.
| Listed companies | Increase in the past 10 days | Changes in foreign shareholding |
|---|---|---|
| Sany Heavy Industry | +9.2% | +1.2% |
| XCMG Machinery | +7.8% | +0.9% |
| Zoomlion | +6.5% | +0.7% |
5. Industry Outlook and Challenges
Experts predict that the industry scale will exceed 900 billion yuan in 2024, but we need to pay attention to the risk of raw material price fluctuations. The current steel price has risen by 8% from the beginning of the year, which may squeeze the profit margins of some companies. In addition, the increase in international trade barriers also poses a challenge to export business.
Overall, driven by the release of policy dividends, technological upgrading and iteration and global market expansion, the construction machinery industry has entered a new stage of high-quality development, and this round of growth cycle is expected to last for 2-3 years. Enterprises need to seize the window period and enhance their core competitiveness through innovation-driven development.
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