Construction machinery continues to be a leading enterprise with high vision and is favored by institutions

The "14th five year plan" for construction machinery industry was officially released a few days ago. By 2025, China's construction machinery career planning policy will be 900 billion yuan, the export volume policy will be 28 billion yuan, and the corresponding international market share will be 12%. The organization believes that driven by two factors of stock renewal and new demand, construction machinery is still growing during the "14th five year plan", and advocates focusing on high-quality leading enterprises in the professional sector.

The 14th five year plan for construction machinery was issued

The "14th five year plan for the development of construction machinery industry" compiled by China Construction Machinery Industry Association was officially released a few days ago. The association predicts that the professional operation income of China's construction machinery will reach 900 billion yuan in 2025.

According to the analysis of the plan, the "14th five year plan" period is the first five years after China has built a well-off society in an all-round way and completed the first hundred year struggle policy, seized the momentum to start a new journey of building a modern socialist country in an all-round way and march towards the second hundred year struggle policy. At that time and in the future, China's development was still in an important period of strategic opportunities. The development of construction machinery had outstanding development opportunities, but it also faced the new challenges of serious changes in the international situation.

Facing the new situation and new requirements of the 14th five year plan, the construction machinery profession will implement six industrialization innovation projects at a new historical starting point: the innovation pilot project of new high-tech construction machinery; Intelligent manufacturing of construction machinery; Improve the reliability of construction machinery products; Construction machinery inspection, experiment and evaluation digital channel construction project; Strengthen the foundation of construction machinery industry chain and carry out engineering; Internet application channel construction project of construction machinery industry.

Strive to complete the key mission of the 14th five year plan, carry out the strategy driven by innovation, accelerate scientific and technological innovation, and strive to complete the modernization of construction machinery industry; Comprehensively improve the basic ability of the industry and strive to complete the high-end construction machinery industry; Further improve the quality of construction machinery products and strengthen brand construction; Comprehensively promote green development and build a green manufacturing system for construction machinery; Accelerate the integration of Internet plus construction machinery industry, and promote the digitalization of occupation. Improve the level of international development and strive to achieve a steady increase in overseas affairs; Do a good job in talent training and team construction, and try our best to improve the quality of the professional talent team of construction machinery; Supervise the market order, resist unfair competition and try our best to build an excellent market environment; Actively carry out service-oriented production and strengthen post market management, and establish an exit mechanism for old construction machinery.

Su Zimeng, President of China Construction Machinery Association, said that during the "14th five year plan" period, the construction machinery industry will continue to carry out supply side structural innovation, actively base itself on the new development stage, fully follow the new development concept, and show new achievements in accelerating the construction of a new development format with domestic large cycle as the main body and domestic and international double cycles promoting each other.

Stable operation of construction machinery industry in the first half of 2021

According to the occupational statistical data of China Construction Machinery Industry Association, the 26 host manufacturing enterprises included in the statistics from January to June 2021 sold 223833 sets of various excavation machinery products, with a year-on-year increase of 31.3%.

In June, 23100 mining machinery products were sold, a year-on-year decrease of 6.2%. Meanwhile, the sales volume in the domestic market was 16965 units, a year-on-year decrease of 21.9%; The export sales volume was 6135 units, a year-on-year increase of 111.5%.

According to the customs data, the import and export trade volume of China's construction machinery from January to may 2021 was US $13.622 billion, a year-on-year increase of 41.3%. During this period, the import amount was US $1.7 billion, a year-on-year increase of 11%; The export value was US $11.922 billion, a year-on-year increase of 47%, and the trade surplus was US $10.22 billion, a year-on-year increase of US $3.645 billion.

From January to May this year, the export of construction machinery to six continents showed great ups and downs, during which the export to Asia was US $5.361 billion, accounting for 44.97% of the total export, with a year-on-year increase of 46.7%; Exports to Africa amounted to US $1.07 billion, accounting for 8.95% of the total exports, with a year-on-year increase of 43.9%; Exports to Europe amounted to 2.71 billion US dollars, accounting for 22.75% of the total exports, with a year-on-year increase of 53.2%; Exports to North America reached 1.331 billion US dollars, accounting for 11.2% of the total exports, with a year-on-year increase of 27.3%; Exports to Oceania amounted to 552 million US dollars, accounting for 4.63% of the total exports, with a year-on-year increase of 47.7%; Exports to South America amounted to US $898 million, accounting for 7.53% of the total exports, with a year-on-year increase of 71.7%. In addition to the relatively small increase (+ 27.3%) in exports to North America, the growth of other continents exceeded 40%, especially exports to South America increased by 71.7%.

From 1 to May one year, one belt, one road, and the total number of construction machinery exported to China totaled 5 billion 170 million US dollars, accounting for 43.4% of the total export volume, up 49.4% from the same period last year. Exports to BRICs countries amounted to US $1.585 billion, accounting for 13.3% of all exports, with a year-on-year increase of 60.6%.

Construction machinery leading stocks are loved by funds

On July 22, influenced by the news that the annual excavator sales volume is expected to increase steadily, the leading A-share construction machinery stocks are favored by funds. As of the closing, construction machinery (600984) rose by the limit, Sany Heavy Industry (600031) rose by more than 7%, Shanhe intelligence (002097), Zoomlion (000157), XCMG machinery (000425), Shantui shares (000680) and other stocks rose.

Guohai Securities research report pointed out that the sales of excavators in June were better than expected, and the "14th five year plan" for construction machinery was issued. In the second half of the year, the investment side and export side may give certain support to the demand for construction machinery, and the annual excavator sales volume is expected to increase steadily. The 14th five year plan for construction machinery was issued. In 2020, the operating income of the whole profession of construction machinery will be 775.1 billion yuan, a year-on-year increase of 16%, and the overseas influence will be comprehensively improved. According to the plan, the professional revenue is expected to reach 900 billion yuan in 2025, during which the professional policy of excavator, including domestic brands, will account for more than 60% of the market; The market share of high-end large-scale excavation broke 55%; The localization rate of central hydraulic parts exceeds 60%; Excavator Cr4 exceeds 60%, etc. Now the leading enterprises of the whole machine are expanding in the direction of high value-added products and automation and intelligence. Together with the promotion of central parts, the cost of the whole machine enterprises is expected to further improve their competitiveness and increase the market share. The whole machine and parts enterprises have room for growth.

The "14th five year plan" development policy of China's construction machinery industry is: by 2025, the overall level of construction machinery industry will be greatly improved, innovation can be significantly enhanced, quality and benefit can be significantly improved, and development can be further enhanced. By 2025, China's construction machinery career planning policy will be 900 billion yuan, the export volume policy will be 28 billion yuan, and the corresponding international market share will be 12%.

Shengang Securities believes that construction machinery is still growing during the "14th five year plan" period driven by two factors: stock renewal and new demand. It advocates focusing on high-quality leading enterprises in professional circles and central parts suppliers. In terms of investment strategy, general equipment, energy equipment, construction machinery and other occupations are at a high level in recent years, and there is a large theoretical demand for equipment acquisition in relevant fields. Focus on the target: Sany Heavy Industry, Hengli hydraulic, pilot intelligence, Yawei, zhongmi holdings, newway, Jingsheng Electromechanical, Jiejia Weichuang, Zoomlion, etc.

Nuggets

XCMG machinery (000425)

On the morning of July 20, with the sound of the siren of COSCO Sao Paulo, COSCO Shipping's "COSCO Sao Paulo", nearly 1000 XCMG excavators, loaders, graders and other construction machinery set sail from Lianyungang port to South America.

It is reported that this is the largest single batch export order of China's construction machinery industry in recent five years. Together, the smooth shipment of XCMG construction machinery is also an important practice for China's shipping enterprises and foreign trade enterprises to enhance cooperation and jointly deal with foreign trade shipment problems, which has played a positive role in the stability of the global supply chain under the epidemic.

At the beginning of 2021, XCMG successfully won the bid for large-scale projects in South America. Under the situation that "one cabin and one box are difficult to find" caused by the epidemic, XCMG's strong cooperative partner COSCO Shipping provided reliable shipping channels and service guarantee, and effectively handled the problems of transportation guarantee and cost.

At present, XCMG has formed a "sea alliance" with more than 80 Chinese enterprises to complete the policy of China's transportation, China's construction and China's equipment to jointly serve global customers by establishing global transportation, take out construction and overseas key customer cooperation channels. The brilliant export report card in the first half of this year reflects the remarkable results of XCMG's international layout and its good global brand reputation and influence. One belt, one road, is now in the 187 countries and regions, covering 97% of the countries along the belt, and the top 30 export companies in the world.

Zoomlion (000157)

Zoomlion's first quarterly report showed that the revenue in the first quarter of 2021 was 19.05 billion yuan, a year-on-year increase of 110.11%; The net profit was 2.416 billion yuan, a year-on-year increase of 135.41%; The net cash flow from operating activities was 2.66 billion yuan, a year-on-year increase of 733.67%, and the revenue, net profit and operating cash flow all achieved good results again.

Zoomlion showed that in the first quarter of 2021, the competitiveness of the company's main products continued to enhance, resulting in an increase in sales planning. Together, the company took a number of measures to improve the guaranteed customer collection rate, and the cash flow also increased significantly in the first quarter.

The company shows that in the year of the "14th five year plan", new urbanization and village rejuvenation drive the demand for downstream occupations such as domestic infrastructure and new energy, continue to maintain a high boom, product upgrading and safety and environmental protection promotion drive the demand for equipment replacement, superimpose the recovery of overseas demand, and the company's engineering machinery and agricultural machinery affairs maintained a high increase during the presentation period. During the presentation period, benefiting from the improvement of product competitiveness, the company completed the strong sector, continued to consolidate its market advantages and flourished in the emerging industry sector.

The reporter of capital express learned that since 2021, large orders of central products such as Zoomlion concrete machinery and hoisting machinery have come one after another, and the products have been handed over continuously, which has brought a significant increase in revenue and net profit to the company. Together with this, the income of the company's mixer truck, earth moving machinery, aerial work machinery and agricultural machinery increased significantly during the period.

Shanhe intelligent (002097)

In recent years, Shanhe intelligence has paid close attention to internal management innovation. This year, it introduced a strategic partner - Qingdao Xiyi Information Technology Co., Ltd. to help the company build the center. Chen Guangqian, chairman of Xiyi company, deeply analyzed the problems faced by Shanhe intelligent management innovation, focusing on the importance of digital construction of production enterprises. Chen Guangqian said that in the second half of the year, Xiyi company will help Shanhe intelligence focus on promoting four talent construction projects, promote business process, process standardization and informatization based on digital transformation and information construction, and further strengthen the feasibility of the company's strategic planning and implementation.

He Qinghua, chairman of Shanhe intelligence, pointed out that at that time, the construction machinery profession was facing the test of downward cycle. Shanhe intelligence would further streamline its organization and process and sink its supporting force into the front line; The R & D department should further strengthen the market orientation and improve the urgency and effectiveness of R & D; Each operation unit shall strengthen the team construction of the management team and make every effort to support the rapid and healthy development of the enterprise.

He Qinghua stressed that Shanhe intelligence should quickly cultivate business units with a planning level of more than 1 billion. Based on the existing foundation, we should optimize the dealer management mode, strengthen human resource support, improve the production system, accelerate the development of new products and technologies, deeply cultivate the hot areas such as Guangdong, Hong Kong and Macao Bay area, firmly grasp the "double cycle" opportunity, further expand the overseas market, and lay an outstanding foundation for the completion of "20 billion in two years and double in five years".

Hengli hydraulic (601100)

Hengli hydraulic is a real bull stock. From 2017 to January 2021, the cumulative increase of Hengli hydraulic was as high as 1589%, ranking 11th in the list of a shares in the same period.

The back of Hengli hydraulic boom is inseparable from the boost of social security fund, public offering and foreign-funded organizations. Since 2017, star funds such as bocom Schroder growth hybrid, BOCOM Schroder advanced production hybrid, China Europe new blue chip, Xingquan trend have been listed in the list of its top ten circulating shareholders.

Due to the rapid rise in the past two years, the organizations involved in the early stage have accumulated huge floating profits, and some organizations are falling into their pockets. By the end of the first quarter of this year, among the top ten circulating shareholders of the company, only two public funds were listed, including RONGTONG professional prosperity securities investment fund and Hongde Ruize hybrid securities investment fund. In addition, the Shanghai Stock connect also reduced its holdings of 4.361 million shares in the first quarter of 2021, and the number of shares fell to 147 million.

It is worth mentioning that the Macao Financial Management Bureau increased its position of 1917000 shares of Hengli hydraulic in the first quarter, and the other Abu Dhabi Investment Bureau entered the list of the top ten circulating shares of Hengli hydraulic for the first time, with a shareholding of 5248000 shares.

In addition to capital promotion, the increase in the performance of Hengli hydraulic is also the driving force for the stock price to continue to go bull. The operating income and net profit of Hengli hydraulic have been increasing rapidly, and the net profit has increased from RMB 90 million in 2014 to RMB 2.26 billion in 2020, with a cumulative increase of 2411%