21CN: Sany Heavy Industry is poised to seek a "new" business strategy and has achieved results

Source: 21CN stock

In recent years, in the context of overcapacity in the industry and the slowdown in the growth of domestic infrastructure, China's construction machinery industry seems to have bid farewell to the glorious "golden decade". Data show that in 2011, the sales of construction machinery industry increased by 20.7% year-on-year, and the growth rate shrank to 2.96% in 2012. Some users even predict that in the fierce market competition environment, only 20~30 companies in the world may survive in the future, and most of them are facing the fate of disappearing or being merged.
For the current market environment, the industry's leading enterprises seem to be ready to fight a "hard battle", not long ago, Sany Heavy Industry Chairman Liang Wengen said in a public speech that the industry is in a period of adjustment, which is a challenge for enterprises is also a good opportunity, can force enterprises to come out of the extensive growth model, focus on improving their own strength, and make enterprises more competitive. "This kind of adjustment is a kind of exercise and a kind of hard work to grow into a *5653 enterprise."
In the current economic environment, how to maintain a good momentum of development has become a common topic in the construction machinery industry in the past year, whether it is Sany's "risk control, grasp the market, reduce costs, select talents" or other enterprises hold high the slogan of "reducing costs and increasing efficiency", all of which show that the industry enterprises have put the cultivation of "internal strength" in the *5656 position.
It is understood that since this year, Sany Heavy Industry has been driven by product technology innovation, strengthened cost control internally, comprehensively laid out the global market externally, and further consolidated the company's leading position through a series of "hard work" regulation and control means.
In terms of product technology innovation, in the first half of this year, Sany continuously launched a number of competitive innovative products, such as A8 Mortar Master and C8 seriesPump trucks, V8 concrete complete set of equipment, C9 excavator, etc. This year, China's *5656 high-rise Ping An Building has received widespread attention in China, as a behind-the-scenes participant, after the completion of the building, Sany will once again refresh the domestic *5661 pumping record that has been held before, reaching a height of 660 meters.
In terms of cost control, Sany Heavy Industry focuses on process control, and in recent years, Sany has successively introduced a number of measures such as process information reform, manufacturing reform, cost control, and business review, which effectively improve efficiency and reduce costs. It can be seen from the third quarterly report of Sany Heavy Industry this year that Sany has reduced its sales, management and financial expenses this year, and has achieved remarkable results in cost saving and efficiency increase.
According to this year's interim results, Sany's foreign market revenue increased by 66.5% year-on-year, achieving international sales revenue of 5.439 billion yuan, accounting for 24.6% of the company's total sales revenue. Among them, Sany America increased by 55.8% over the same period last year; Sany Asia Pacific increased by 90.1% over the same period last year; After the integration, Putzmeister's sales were 2.66 billion yuan, achieving rapid growth year-on-year.
The inside-out development strategy has laid a good foundation for Sany's sustainable development. According to the third quarterly report of Sany Heavy Industry, from January to September, Sany achieved revenue of 29.902 billion yuan, net profit attributable to the parent company of 2.977 billion yuan, and net profit of 326 million yuan from July to September. Sany management said that through the third data, it can be seen that the company's business strategy has achieved initial results in recent years, and the performance inflection point may have appeared.
Some industry analysts believe that with the adjustment of domestic policies and global economic changes, the focus of competition in China's construction machinery market will undergo major changes. First of all, technology research and development capabilities will become the focus of competition; Secondly, brand competition will become the key to market competition; Third, the level of market competition will be further enhanced. Users said that the new trend is conducive to leading enterprises to become bigger and stronger, but before that, every enterprise in the industry needs to adapt to changes, adhere to product innovation, scientific management, improve market layout, and take the road of sustainable development.