Securities Daily: Sany Heavy Industry's international business revenue last year was nearly 10 billion yuan, and more than 70% of the overseas market was in the "Belt and Road"

Not long ago, Sany Heavy Industry's 2016 annual report was released, as one of the points worth paying attention to, in 2016, Sany Heavy Industry achieved international sales revenue of 9.286 billion yuan.

On this basis, the company's overseas business quality has continued to improve, and India, Europe, South Africa, the Middle East and other regions have achieved rapid growth. The above areas are highly consistent with the "Belt and Road" roadmap. It is understood that as the leader of China's construction machinery industry, Sany Heavy Industry has been relying on the "Belt and Road" to actively deploy overseas. Sany Heavy Industry told the "Securities Daily" reporter that at present, in the overall sales of Sany Group, the sales of overseas markets have exceeded 40% of the company's performance, of which 70% of the income comes from countries and regions along the "Belt and Road".

Become a beneficiary of the Belt and Road Initiative

It is understood that in 2016, the total trade volume between China and countries along the route was about 953.59 billion US dollars, accounting for more than 1/4 of China's total trade. In the first quarter of 2017, the total trade volume exceeded 1.6 trillion yuan, a year-on-year increase of 26.2%. Among them, China's exports to countries along the Belt and Road increased by 15.8% year-on-year, accounting for nearly 30% of China's total exports in the same period.

In the eyes of the industry, the construction of the "Belt and Road", made in China will undoubtedly become an important construction force, and it will also be an important choice to open up the "Belt and Road" interconnection. There are two main logics for the machinery industry to benefit from the "Belt and Road": one is to benefit from the interconnection of facilities along the route, which will bring about an increase in infrastructure construction in countries along the route and drive the demand for construction machinery and other fields; The second is the national trade pull, involving the output of advantageous equipment, including high-speed rail equipment, container equipment, oil and gas equipment, ship equipment, etc.

Among them, Sany Heavy Industry gives priority to sharing the dividends of the "Belt and Road". On the basis of the international sales revenue of Sany Heavy Industry last year of 9.286 billion yuan, in the first quarter of this year, the entire overseas sales of Sany Group increased by 30% year-on-year, and the sales of the ten overseas regions increased by 90% year-on-year, of which the Russian region increased by more than 400%, the Latin American region increased by more than 300%, the Middle East region increased by more than 200%, the Southeast Asia region increased by nearly 30%, and the Asia-Australia region increased by more than 10%.

At the same time, due to the performance of Sany Heavy Industry overseas, it has also won the favor of the capital market. In the "Belt and Road" concept stocks recommended by a number of brokerages, Sany Heavy Work will be the key promotion object. According to the analysis of GF Securities, Sany Heavy Work is the largest overseas production base in the domestic construction machinery industry, almost all countries along the "Belt and Road", Sany has set up a corresponding company or regional sales agency, and has several years or even more than ten years of operation history, is familiar with the construction of the project along the line, and has accumulated a certain amount of customer resources and brand effect. Therefore, with the in-depth advancement of the "Belt and Road" and the gradual implementation of engineering construction project contracts, Sany Heavy Industry will benefit. According to the statistics of the China Business Industry Research Institute, as of the close of trading on March 31, the total market value of listed companies in China's A-share construction machinery industry was 220.28 billion yuan, of which Sany Heavy Industry ranked first with 55.14 billion yuan, and the leading position in the industry was highlighted.

More than seventy percent of overseas markets are in the "Belt and Road"

Looking at the global layout of Sany industry, 70% to 80% of Sany's overseas markets are currently in the "Belt and Road", the world's longest economic corridor.

In the "New Silk Road Economic Belt", the industrial parks to be built by Sany in Xinjiang, Beijing and Shenyang occupy the most advantageous position. In particular, Sany Northwest Heavy Industry, located in Xinjiang, covers the Xinjiang market and forms an overall layout facing the northwest and radiating Central Asia. In fact, Sany has industrial parks in the United States, Germany, India and other places, and has formed ten sales areas covering Africa, Asia-Pacific, Russia, the Middle East, Latin America and other regions, focusing on the "Belt and Road". In addition, after Sany's acquisition of Putzmeister, 10 manufacturing plants in Turkey, Belgium, Spain, and Russia were added, so that Sany's entire layout formed a line from the Northeast to the Far East, Siberia, and Mongolia, just like the path of the traditional Silk Road in ancient times.

Not only that, but the layout of the Maritime Silk Road has also begun to take shape. At present, Sany Heavy Industry has set up factories in Shanghai Lingang, Zhuhai, Zhejiang, Jiangsu and other places. In this key area, Sany Heavy Industry has established the Zhuhai Industrial Park to carry out marine engineering equipment business, which is the second largest new business segment after Sany Heavy Industry entered the field of energy equipment. In addition, the company has also invested in India, Indonesia and other countries to form a complete "Maritime Silk Road".

In addition, it is understood that in addition to construction machinery products, Sany Heavy Industry has also built residential industrialization projects, smart ports, new energy technologies, and intelligent oilfield mining projects into a new fulcrum of business on the "Belt and Road".

The residential industrialization project is a new field that Sany Group has entered in recent years. In this field, Sany Heavy Industry has achieved rapid development and has become the first enterprise in China that can provide overall solutions for PC complete sets of equipment. At the same time, overseas, Sany Heavy Industry has participated in the local construction of Russia, Algeria, Malaysia, Indonesia, South Africa, Saudi Arabia and other countries through housing industrialization.