used excavator Industry fluctuations highlight the resilience of enterprises

Release date 2024-12-02 14:58:28 Reading 9

　　Leaping from "product going global" to "industry going global", engineering machinery manufacturers are expanding overseas and changing their strategies

　　At the end of March this year, the delivery ceremony of Zoomlion's 600 ton all terrain crane was held in Jakarta, Indonesia, becoming another milestone for Zoomlion to break through the Indonesian market. Driven by the localization development strategy in key countries, Zoomlion's overseas business development momentum is strong in 2023. According to the company's 2023 annual report, its overseas revenue increased by 79.2% year-on-year, achieving effective breakthroughs in key overseas markets.

　　In fact, in the past year, due to factors such as the decline in domestic real estate and infrastructure investment and the drag of domestic sales, the overall performance of the domestic construction machinery market has been mediocre. The overall sales of excavators and loaders have declined year-on-year, and demand is relatively weak. However, in sharp contrast, according to the disclosed 2023 annual reports, listed companies in the construction machinery industry have shown strong resilience in the face of the overall downturn, with profitability rising against the trend. Upgrading their strategies around overseas business has become a growth secret.used excavator

　　Industry fluctuations highlight the resilience of enterprisesused excavator used excavator used excavator used excavator used excavator used excavator

　　The overall market downturn is a true reflection of the construction machinery industry in the past year. According to incomplete statistics, among the more than 10 categories of construction machinery equipment announced by the China Construction Machinery Industry Association, nearly 70% of products will experience a decline in overall sales in 2023.used excavator used excavator used excavator used excavator used excavator

　　Taking excavators, loaders and other major categories as examples, according to data from the China Construction Machinery Industry Association, the overall sales of excavators in 2023 decreased by 25.4% year-on-year, and the overall sales of loaders decreased by 15.8% year-on-year, mainly due to the drag of domestic sales.

　　However, compared to the sluggish domestic market, the export sales data of excavators and loaders in 2023 show a significant contrast. Among them, the export sales of loaders in 2023 increased by 11.5% year-on-year, while the domestic sales decreased by 30.1% year-on-year.used excavator used excavator used excavator

　　And the outstanding export business also brings returns to related listed companies. According to the 2023 annual report of Zoomlion, the company achieved a total revenue of 47.075 billion yuan, a year-on-year increase of 13.08%; Net profit was 3.771 billion yuan, a year-on-year increase of 58.13%; Net profit attributable to the parent company was 3.506 billion yuan, a year-on-year increase of 52.04%; Deducting non attributable net profit of 2.708 billion yuan, a year-on-year increase of 109.51%. The company plans to distribute a cash dividend of 3.20 yuan (including tax) for 10 shares, with a total dividend amount exceeding 2.7 billion yuan and a dividend rate of approximately 80%.used excavator used excavator used excavator used excavator used excavator used excavator

　　It is worth mentioning that under the promotion of globalization strategy, Zoomlion continues to move towards the high-end of the global value chain. The annual report shows that the company's overseas revenue reached 17.905 billion yuan in 2023, a year-on-year increase of 79.2%, and the proportion of overseas revenue further increased to 38.04%, setting a new historical high.used excavator used excavator used excavator used excavator used excavator used excavator

　　On the one hand, significant achievements have been made in expanding overseas markets; on the other hand, emerging business sectors such as excavators, aerial work machinery, and mining machinery are developing rapidly; at the same time, the company continues to promote cost reduction and efficiency improvement, continuously improving its operational and management level, and effectively improving its profitability. "This is what Zoomlion said about its performance growth in 2023.

　　Not only Zoomlion, according to the industry classification of Shenwan, among the 19 listed engineering machinery companies that disclosed their 2023 annual reports, 15 had a year-on-year increase in net profit, of which 11 had an increase of over 30%.used excavator used excavator used excavator used excavator used excavator

　　There are three reasons why it is possible to achieve performance growth against the trend: first, high-quality leading listed companies have deep moats, reducing cost expenditures through comprehensive management and minimizing the impact of domestic sales fluctuations; second, export business performance is impressive; third, actively exploring high-quality products in emerging fields and further building risk prevention capabilities. "Industry insiders told China Securities Journal reporters that if we want to rank these reasons by weight, it can be clearly stated that high-quality development of export business is an indispensable factor for related enterprises to grow against the trend.used excavator used excavator used excavator used excavator used excavator used excavator used excavator used excavator used excavator

　　In the view of the above-mentioned individuals, the construction machinery industry is undergoing a transformation, and enterprises that can seize the opportunities of industry change, especially those that plan and judge to reshape their overseas business operation mechanisms, are expected to be guaranteed for their future development.used excavator used excavator used excavator used excavator used excavator used excavator used excavator used excavator used excavator

　　As for the market development trend of the domestic construction machinery industry in the next two years, industry insiders generally believe that the overall market is still in the bottom area, but the trend of recovery in the future is relatively clear. Overall, the market atmosphere has not been high in recent years, but the risk of continued market decline has been basically resolved. Currently, the market is in the bottom zone and is not far from rebounding. "Fei Chunjiang, Chairman and General Manager of Komatsu (China) Investment Co., Ltd., predicts that the domestic construction machinery market has reached its bottom and will see a slight and gradual rebound in the future.used excavator used excavator used excavator used excavator used excavator used excavator used excavator

　　Meng Xianghong, Deputy General Manager of the Production Supervision Center of China Railway Group Limited, also believes that the procurement volume of related engineering machinery and equipment is expected to rebound in the second half of this year and may steadily increase next year. In the view of Bai Yunfei, Deputy General Manager of Operations Management Department of China Railway Construction Corporation Limited, even if there is no significant rebound in 2024, it will slowly recover in 2025.used excavator used excavator used excavator

　　Overseas market development is vibrant and colorfulused excavator used excavator used excavator used excavator used excavator used excavator

　　Since April, XCMG XE150BR hydraulic excavator has broken ground in Chile, XCMG Australia R&D center has been officially unveiled, and more than 100 XCMG high-altitude work platform products have been exported in bulk to Central America... Large listed engineering machinery companies represented by XCMG Machinery have received frequent good news.used excavator used excavator used excavator used excavator used excavator used excavator

　　The establishment of the Australian R&D center marks another solid step for XCMG in building a more open and innovative international journey, "said Liu Jiansen, Vice President of XCMG Machinery. This move will greatly enhance XCMG's technological research and development capabilities and market service quality.

　　In order to better expand its international business, Yang Dongsheng, Chairman and Party Secretary of XCMG Group and XCMG Machinery, has previously stated that it will carry out comprehensive cooperation with COSCO Shipping Group in digital supply chain, overseas routes, green and intelligent logistics, and other aspects in the future.used excavator used excavator used excavator used excavator used excavator

　　Accelerating the construction of airport bases has also become a key focus of Zoomlion's overseas business efforts. The company stated that it will continue to improve its localization operation mechanism, drive refined management of airport bases through digitization, and enhance the core capabilities of overseas airports. At the same time, we will accelerate the expansion and upgrading of overseas research and development manufacturing bases to enhance the global competitiveness of enterprises.

　　Driven by the comprehensive internationalization strategy, LiuGong's overseas business momentum is also strong. Recently, 19 LiuGong B230 bulldozers were successfully packed and shipped from LiuGong bulldozer manufacturing base to customers in West Africa. In early April, 10 LiuGong W915E wheeled excavators were neatly arranged and delivered to key customers in the Asia Pacific region.used excavator used excavator used excavator used excavator

　　It is reported that since the beginning of this year, LiuGong's wheeled excavators have had strong production and sales, with a significant year-on-year increase in monthly sales in the first quarter, and multiple wheeled excavators have been delivered in bulk. In overseas markets, Liugong wheeled excavators are popular in markets such as Russia and Southeast Asia, and have also won orders in regions such as West Asia, Central Asia, and Latin America.

　　The financial data is more evident. According to statistics, among the 19 listed engineering machinery companies that disclosed their annual reports for 2023, 15 explicitly disclosed their overseas business revenue for 2022 and 2023. It is worth mentioning that according to the comparable caliber of statistics, all 15 companies achieved growth in overseas business revenue in 2023.used excavator used excavator used excavator used excavator

　　According to statistics, among the 15 companies mentioned above, 11 have overseas revenue growth rates of over 30%. Among them, XCMG Machinery, Zoomlion Heavy Industry Science and Technology Co., Ltd., and Liugong have all achieved impressive growth in their overseas business based on a large base of over 8 billion yuan in 2022.used excavator used excavator used excavator used excavator used excavator

　　Since the beginning of this year, the overseas market has shown a certain degree of volatility, and it is particularly important to adjust the layout according to the actual development of overseas business. Except for a few regions that are in a period of adjustment due to market influence, all other regions have achieved profitable sales growth. In the first quarter of this year, the company's overall overseas revenue exceeded 3.8 billion yuan, surpassing the full year revenue of 2020, and net profit set a historical record for the same period. The relevant person in charge of Liugong stated that they will closely monitor the overseas market situation and customer needs, adjust market strategies and resource allocation as needed, take appropriate and necessary measures, and promote the sustained growth of overseas business.

　　Engineering machinery manufacturers are gradually transitioning from 'product going global' to 'industry going global'. The further deepening of globalization strategy is not only necessary for the development of the industry, but also provides guarantees for building sustainable competitiveness in the future. "An executive of a large listed company in the industry told reporters that early single point product trials can no longer meet the current industry development pattern. Systematic and industrialized channel connections and the establishment of a complete overseas business chain determine whether related enterprises can achieve breakthroughs in the future.

　　Institutional research emphasizes both external and internal aspectsused excavator used excavator used excavator used excavator

　　For some time now, institutions have been paying close attention to the construction machinery industry. According to Wind data, since the beginning of this year (from January 1st to May 9th as the statistical interval), the number of institutional surveys and the number of participating research institutions for listed construction machinery companies have increased compared to the same period last year. Among them, Zoomlion and XCMG Machinery have received more attention from institutions, especially insurance funds.used excavator used excavator used excavator used excavator

　　Since the beginning of this year, Zoomlion has been surveyed four times, attracting 195 institutions to participate, making it the engineering machinery enterprise with the most institutional participation in the survey. From the research content, overseas business is a key focus for institutions.

　　It is expected that the growth rate of China's construction machinery export industry will slow down in 2024, and there may be performance differentiation between different countries and regions. "Zoomlion Heavy Industry Science and Technology Co., Ltd. stated in a survey that the company has the advantage of diversified regions and diversified products, coupled with its unique" end-to-end, digital "overseas business development system, and is expected to still achieve performance growth rates higher than the overall industry level.used excavator used excavator used excavator used excavator

　　At present, the company's market share in overseas markets is lower than that in China. In the future, we hope to significantly increase our market share in overseas markets within three to five years. As for how to explore overseas markets, Tongli Corporation stated that it will closely cooperate with central enterprises and large companies, build from existing layouts to areas, and choose high-quality overseas distributors to strengthen cooperation with them.

　　XCMG Machinery revealed in its research that it will further increase the proportion of revenue from products with medium to high gross profit margins, reduce the proportion of revenue from products with low gross profit margins, and increase the proportion of revenue from overseas business (currently, gross profit margins and profit margins are larger than those in China). At the same time, based on the increase in gross profit margin in 2023, it is planned to further increase the gross profit margin in 2024.used excavator used excavator used excavator used excavator

　　The development of domestic business is also receiving significant attention. Zoomlion said in an institutional survey that the domestic market of the construction machinery industry is at the bottom of the cycle, and the infrastructure investment led by local government special bonds and special treasury bond is expected to continue to play a supporting role. At the same time, with the help of equipment renewal policies, it may speed up the stability and recovery of the industry to some extent.

　　The company will continue to incubate emerging businesses that meet market demand and achieve category expansion. Currently, new sectors represented by earthmoving machinery, aerial work machinery, agricultural machinery, and mining machinery have shown strong growth trends, smoothing out the company's traditional industry cycle attributes in the domestic market, "said Zoomlion.used excavator used excavator used excavator used excavator used excavator used excavator

　　Overall, there will still be incremental growth in the future market, but it will mainly be concentrated in relatively large construction machinery enterprises, and smaller enterprises will find it difficult to adapt to competition, "said Tongli Corporation when discussing the overall operation of the domestic market in the future.

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used excavator Industry fluctuations highlight the resilience of enterprises

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to offer you the most favorable price.