The signs of a turning point in the cycle are emerging

Release date 2024-12-03 15:06:37 Reading 4

　　The resonance between policies and markets has led to an increase in the prosperity of the construction machinery industryused excavator used excavator used

　　Recently, the construction machinery sector in the secondary market has continued to strengthen, with several individual stocks reaching new highs in stock prices; In March, the main product of construction machinery, excavators, saw a long-awaited positive growth in domestic sales compared to the same period last year. All kinds of signals indicate signs of recovery in the construction machinery industry.used excavator used excavator used excavator

　　With the catalysis of multiple favorable policies, has the downward cycle of the construction machinery industry reached a turning point? Industry insiders told reporters from China Securities Journal that it is not yet a turning point, but rather that we are getting closer and closer to it. In 2024, with the gradual manifestation of policy effects and sustained growth in domestic demand, the industry is expected to enter a stable recovery stage.used excavator used excavator used excavator

　　The signs of a turning point in the cycle are emergingused excavator used excavator used excavator used excavator

　　Since April 2021, China's construction machinery industry has entered a downward cycle, which has lasted for three years.used excavator used excavator used

　　As a barometer of the construction machinery industry, excavator sales have been experiencing negative year-on-year growth for several consecutive months, especially in domestic sales. From April 2021 to March 2024, 32 months of domestic sales were negative growth. During this period, China's construction machinery export market maintained a good growth trend, and the proportion of international revenue to total enterprise revenue continued to increase.used excavator

　　However, in recent times, the recovery trend of China's construction machinery industry has become increasingly strong, and there has been a long-awaited year-on-year positive growth in domestic sales. From December 2023 to March 2024, there were three months where the domestic sales growth rate showed positive growth.

　　According to statistics from the China Construction Machinery Industry Association on major excavator manufacturers, 24980 units of various types of excavators were sold in March 2024, a year-on-year decrease of 2.34%. Among them, there were 15188 units domestically, a year-on-year increase of 9.27%; Export of 9792 units, a year-on-year decrease of 16.2%.used excavator used excavator used excavator used excavator used excavator

　　Meanwhile, in the first quarter of this year, China sold 49964 excavators, a year-on-year decrease of 13.1%. Among them, there were 26446 units domestically, a year-on-year decrease of 8.26%. The reporter noticed that compared to 2023 and the first quarter of 2022, the overall sales and domestic sales decline of excavators in China have significantly narrowed, and the domestic sales decline has narrowed to single digits.used excavator used excavator

　　The recovery of positive growth in domestic sales of excavators is expected to boost industry confidence to a certain extent. Since the beginning of this year, the construction machinery sector has performed outstandingly in the secondary market. Among them, LiuGong's stock price has risen by over 50% this year, reaching a new high in many years, while Xugong Machinery's stock price has risen by nearly 30%.used excavator used excavator used excavator

　　Regarding the recent trend of the construction machinery market, Lv Ying, Deputy Secretary General of the China Construction Machinery Industry Association, believes that policies favorable to the development of the construction machinery industry have been continuously introduced, catalyzing market expectations and boosting sector growth; At the same time, construction machinery enterprises are constantly adjusting their product structure, with an increasing proportion of large high-end products, improving product quality, and having good development expectations.used excavator used excavator used excavator

　　With the recovery of the construction machinery sector, the overall sales decline of excavators has narrowed, and the year-on-year growth rate of domestic sales has turned positive. Does this mean that the current downward cycle has reached a turning point?

　　Now is not the turning point, we can only say that we are getting closer and closer to the turning point, "a senior analyst in the machinery industry told reporters. Huang Hualin, the secretary of the board of directors of Liugong, admitted in an interview with reporters, "There is a slight sign at present, but the recovery is not that fast yet

　　For the signal of the current recovery of the construction machinery industry, Lv Ying prefers to call it a microcosm of the long-term stable development of China's construction machinery industry.used excavator used excavator used excavator

　　Good expectations in the domestic marketused excavator used excavator used excavator

　　At present, during the disclosure period of annual and first quarter reports, most construction machinery companies have shown impressive performance, conveying a strong sense of warmth in the construction machinery industry.used excavator used excavator used excavator used excavator used excavator

　　In 2023, the demand in overseas markets will continue to increase, and the competitiveness of Chinese brands in overseas markets will be enhanced. The export sales of the construction machinery industry will maintain high growth. The outstanding performance of overseas business became an important factor in the performance growth of construction machinery enterprises last year.used excavator used excavator used excavator used excavator

　　Zoomlion will achieve a revenue of 47.075 billion yuan in 2023, a year-on-year increase of 13.08%; The net profit attributable to the parent company was 3.506 billion yuan, a year-on-year increase of 52.04%; The gross profit margin increased by 5.7 percentage points year-on-year. During the reporting period, the company's overseas revenue increased by over 79.2% year-on-year.used excavator used excavator used excavator used excavator used excavator

　　Entering 2024, policies favorable to the development of the construction machinery industry continue to be introduced, and domestic market demand expectations are gradually improving.used excavator used excavator used excavator used excavator

　　From the current downstream demand, we have noticed an improvement in demand for water conservancy, mining, highways, railways, and other areas, "said Huang Hualin.used excavator used excavator used excavator used excavator used excavator used excavator used excavator used excavator used excavator used excavator used

　　Recently, many construction machinery companies have disclosed their first quarter performance, reflecting the recovery trend of the construction machinery industry.

　　Liugong expects a significant increase in performance in the first quarter of this year, achieving a net profit attributable to the parent company of 457-536 million yuan, a year-on-year increase of 45% -70%. Liu Gong stated that in the first quarter, the revenue growth in both international and domestic markets outperformed the industry, with the proportion of international market revenue further increasing to about 50%, resulting in stable growth in profitability and a significant increase in the company's operating performance.used excavator used excavator used excavator

　　Hangcha Group achieved a revenue of 4.172 billion yuan in the first quarter, a year-on-year increase of 6.17%; The net profit attributable to the parent company was approximately 379 million yuan, a year-on-year increase of 31.16%.used excavator used excavator used excavator

　　Positive policies continue to be introduced. On April 9th, the Ministry of Industry and Information Technology and seven other departments jointly issued the "Implementation Plan for Promoting Equipment Renewal in the Industrial Sector", proposing that by 2027, the scale of equipment investment in the industrial sector will increase by more than 25% compared to 2023. The Ministry of Housing and Urban Rural Development recently issued a notice on the implementation plan for promoting the updating of construction and municipal infrastructure equipment, which specifically requires the replacement and elimination of excavation, lifting, loading, concrete mixing, elevators, bulldozers and other equipment (vehicles) that have been in use for more than 10 years, high pollution, high energy consumption, severe aging and wear, and outdated technology.used excavator used excavator used excavator

　　According to data from Huicong Engineering Machinery Network, there are 388000, 362000, 757000, and 34000 excavators, loaders, forklifts, and rollers with a service life of over 10 years that meet the national standard or below, accounting for 19.79%, 37.84%, 13.35%, and 23.78% of the total inventory in 2023.

　　The industry expects that 70% -80% of old equipment will be phased out in the future, and 20% -30% of old equipment will generate a demand for trade in.

　　With the implementation of large-scale equipment update policies, it is favorable for the domestic demand for construction machinery and equipment to bottom out and rise, "said Huaxi Securities.used excavator used excavator used excavator

　　Industry insiders say that with the gradual manifestation of policy effects and the continuous reflection of updated demand, top enterprises are expected to stabilize first with their scale advantages, industrial layout advantages, reform dividends, etc.used excavator used excavator used excavator

　　Continuously strengthen overseas marketsused excavator used excavator

　　Our new three modernizations strategy upgrades' internationalization 'to' globalization '. The Chinese construction machinery market is a part of the globalized market, while overseas markets such as North America and Europe are parallel to the Chinese market and equally important in terms of investment, "said Cai Shenglin, Secretary of Sany Heavy Industry.used excavator used excavator

　　It is understood that Sany Heavy Industry has moved away from a simple product export model and has established a localized manufacturing layout in the global market. We have upgraded our factories in the United States with intelligence, and the next step is to upgrade our existing factories in Europe and India with intelligence. Our factory in South Africa is expected to be completed by 2024, "said Li Qin, head of Sany Heavy Industry's overseas operations headquarters.

　　Among them, the "Sany South Africa Headquarters Base" project has already started construction. The base is positioned as a regional manufacturing center, logistics center, and talent center. The project has an investment of 300 million rand and is expected to be completed by the end of 2024. By then, it will be able to produce 1000 excavators and other engineering machinery equipment annually.used excavator used excavator used excavator

　　Sany Heavy Industry has also established research and development centers overseas in order to better explore overseas markets. We have established global research and development centers in the United States, India, and Europe, utilizing local talents and collaborating with China to conduct product development and better serve global customers, "said Li Qin.used excavator used excavator used excavator

　　Zoomlion has also increased its pace of going global. Tao Zhaobo, the Secretary of the Board of Directors of Zoomlion, told reporters that in 2024, the company will firmly take the step of "going global", continue to use the global village thinking to promote overseas transformation, build an end-to-end, digital, and localized overseas business system, and continue to promote the leapfrog development of overseas business.used excavator

　　"Zoomlion's product market share in the overseas market is in a period of high growth, and has doubled its exports for two consecutive years. The company's overseas sales regions are mainly countries and regions along the" the Belt and Road ", developing countries, and will also actively expand in Western Europe, North America and other markets. By the end of 2023, the company has successively built more than 30 first-class business airports and more than 350 secondary outlets in the world, and the construction of outlets has sunk from regional centers to important cities. The total number of overseas localized employees in the world is more than 3000, and the products cover more than 140 countries and regions." Huang Chengya, deputy general manager of Zoomlion Overseas, said.used excavator

　　Taking 2023 as an example, Zoomlion's overseas business has shown a strong growth trend from partial breakthroughs to comprehensive efforts and comprehensive results. Key markets have achieved effective breakthroughs, and the localization development strategy in key countries has achieved significant results, with a rapid increase in product market share. Engineering crane has become the brand with the highest proportion in Türkiye and Central Asia; Establish products and maintain the leading position in Türkiye market; Saudi Arabia, Malaysia, Vietnam, Kenya and other markets have rapidly increased their market share through localized cultivation. In 2023, Zoomlion's overseas revenue reached 17.905 billion yuan, a year-on-year increase of 79.2%, and the proportion of overseas revenue further increased to 38.04%, setting a new historical high.

　　Huang Chengya stated that Zoomlion will continue to deepen its overseas business system of "end-to-end, digitalization, and localization". In the future, the vast space in overseas markets will continue to provide the company with solid growth momentum

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The signs of a turning point in the cycle are emerging

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The signs of a turning point in the cycle are emerging

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