China Securities Journal: Excavator sales pick up!

Boosted by the start of construction of "guaranteed delivery buildings" and infrastructure projects, the total monthly sales of excavators in China have been positive year-on-year for four consecutive months since July. According to the statistics of 26 excavator manufacturers by China Construction Machinery Industry Association, 20,501 excavators of various types were sold in October, a year-on-year increase of 8.1%.

"The gradual recovery of excavator sales is mainly due to the gradual improvement of domestic demand, the rapid growth of exports, and the low base effect. In fact, the overseas sales scale of China's excavators is getting closer and closer to the domestic scale, and even more than domestic in some months this year, which reflects the gradual increase in the competitiveness of China's excavators in overseas markets. The relevant person in charge of Sany Heavy Industry said in an interview with a reporter from the China Securities Journal.

Demand is picking up

Excavators are the vane that reflects economic changes such as infrastructure construction and observation of fixed asset investment.

According to data from the China Construction Machinery Industry Association, 20,501 excavators of various types were sold in October, a year-on-year increase of 8.1%, and the year-on-year sales growth rate was positive for four consecutive months. Among them, domestic sales were 11,350 units, an increase of 7.9% month-on-month; A year-on-year decrease of 9.91%, the year-on-year decline narrowed for three consecutive months. 9,151 units were exported, a year-on-year increase of 43.8%, maintaining a rapid growth trend.

The person in charge of the above-mentioned Sany Heavy Industry said: "China's excavator sales are gradually picking up, on the one hand, the government has introduced a series of policies to stabilize growth, which has boosted the downstream demand of the construction machinery industry to gradually increase. Since late September this year, the downstream start-up situation has been significantly improved, and even reached the best start-up situation this year; On the other hand, overseas sales maintained a rapid growth trend, which effectively hedged the decline in domestic sales. ”

Driven by the traditional construction season of "Golden September and Silver October", China's infrastructure investment has shown a continuous trend.

According to the latest excavator index of CCTV Finance, the average operating rate of China's construction machinery in October was 64.07%, an increase of 2.23 percentage points compared with the average operating rate of 61.84% in the first three quarters, reflecting that China's infrastructure investment continued to maintain a stable upward trend.

Accelerate the international layout

According to data from the China Construction Machinery Industry Association, since April 2021, domestic excavator sales have declined year-on-year for 19 consecutive months, while exports have maintained a rapid growth trend.

From January to October this year, China sold a total of 220797 excavators, a year-on-year decrease of 26%. Among them, domestic sales were 131,340 units, a year-on-year decrease of 46.4%; 89,457 units were exported, a year-on-year increase of 67.3%.

"The scale of exports is getting closer and closer to the domestic scale, and even more than domestic in some months this year, reflecting the gradual increase in the overseas competitiveness of China's excavators." The relevant person in charge of the above-mentioned Sany Heavy Industry said.

In the context of rapid growth in the export of construction machinery, the overseas revenue of China's construction machinery listed companies is also growing rapidly. Taking Sany Heavy Industry as an example, in the first nine months of this year, the company achieved international sales revenue of 25.88 billion yuan, a year-on-year increase of 43.7%. At the same time, the global market share of Sany heavy industry excavators has increased rapidly, and the overseas market share has exceeded 8%, and the sales revenue has achieved a rapid growth of more than 60% in the United States, the United Kingdom, Italy and other major overseas excavator markets.

The person in charge of Sany Heavy Industry told reporters: "The internationalization strategy is one of the most important strategies of Sany Heavy Industry, in the past two or three years, the company has increased the development of markets in developed countries, and has set up an international research institute to develop products suitable for overseas markets." At the same time, the company has also strengthened the construction of the supply chain system of overseas sales and service channels, brands and accessories. ”

Orient Securities said that the current domestic construction machinery market is in the bottoming stage, and the overseas market has become a new growth pole in the industry. Domestic construction machinery leading enterprises seize the opportunity to actively lay out overseas markets, and the global competitiveness is expected to continue to improve.

Prosperity is expected to pick up

On November 16, Meng Wei, spokesman of the National Development and Reform Commission, said that at the end of July, the State Council deployed policy-based development financial instruments to increase financing support for major projects. Up to now, 739.9 billion yuan of policy-based development financial instruments have been fully invested, and most of the supported projects have started construction, and the physical workload is being accelerated.

Zheshang Securities said that with the intensive start of infrastructure projects, the infrastructure construction force is obvious, and the superposition of the national four standard switching, the demand for excavators is increasing, and the sales volume is expected to continue to rise.

The person in charge of the above-mentioned Sany Heavy Industry said: "In October, in addition to excavators, other construction machinery products also achieved good sales. From the current point of view, the overall demand of the construction machinery industry in the fourth quarter may be a good period of demand prosperity this year. ”

Dongguan Securities said that the issuance of special bonds will accelerate in 2022, and the government will propose to comprehensively strengthen infrastructure construction, and the prosperity of the infrastructure industry will rebound. In addition, it is expected that the early approval of special bonds in 2023 is expected to be issued early, which is conducive to the early implementation of infrastructure projects in the first half of next year, thereby stimulating the demand for construction machinery.

Source: China Securities Journal