Especially in railway construction, the 2014 development and Reform Commission approved a trillion yuan railway project, in the next period, the effect of the implementation of the railway investment will gradually show. In addition, in the next few years, the state of the new urbanization and shantytowns support will be further increased.
Qi Jun is expected to continue to increase with the various departments to implement the policy to accelerate the preparation and approval of investment projects, increase efforts to promote the gradual implementation of the construction funds, investment will be a positive change in the stability of the.
"According to the development of construction machinery industry in recent years, combined with the basic situation of China’s macro economy, 2015, the construction machinery industry will undertake two years ago of slow growth, total industry revenue will be in 2014, the actual completion based on growth of around 7%, the annual export shape is poised to slightly better in 2014." Qi Jun forecast in the thirteenth China Construction Machinery Development forum.
Winter policy
In the current industry’s "winter season", how to "winter" is the most important issue facing the enterprise. And the measures taken by the companies are not the same.
Among them, ZOOMLION for two consecutive years to implement tight sales policy. Zhan Chunxin said: "the industry is the key to the enterprise self sorting, especially for large enterprises before the development, because before the development is fast, now it is necessary to think about the future direction of development; on the other hand, enterprises can take this opportunity to expand to the relevant industries, looking for new market space."
He introduced ZOOMLION mainly from two aspects to promote the transformation of business strategy: one is the firm’s business expansion of the five plates, the two is to accelerate the internationalization. In 2013, ZOOMLION proposed the development strategy of the five plates, in the field of engineering machinery, heavy trucks and financial services, based on the increase in the environmental industry, agricultural machinery. August 2014, ZOOMLION to 2088000000 yuan acquisition of Chery heavy industries, to enter the high-end agricultural machinery field is an example.
And ZOOMLION is different, Sany choose to enter the unfamiliar banking business. Recently, there is news that Sany plans and other three units launched the establishment of Hunan bank, the registered capital of 3000000000 yuan. An internal staff said, all ready for Hunan bank, waiting for the approval of the cbrc.
Xugong as one of the important reform of state-owned enterprises in Xuzhou pilot enterprises, state-owned enterprise reform has become the hotspot. Liu Ceng Guangan, chairman of the board of directors of Tencent Finance said, compared to other business diversification of business operations, in the context of the decline in the large environment of willow workers focus on the field of engineering machinery, especially the core product loading machine.
Had to speak Guangan said "machines, we started is a serious shortage, by the GPS real-time monitoring, about now equipment operating time is only about 30% of the peak is customers hand above the machine didn’t work. From a global point of view is still very grim, and even in the future many companies are likely to be eliminated, or automatically eliminated."
2015 or have warmer
The industry generally believes that the 2008 global financial crisis, due to the "four trillion" investment incentives and local government over pull, breaking the engineering machinery and the development of all the manufacturing industry, leading to the current industry crisis. 2010, China’s construction machinery industry has been a "blowout" growth, the load of the growth rate of nearly 40%, excavator growth even more than 70%, the Chinese market engineering machinery sales is more than the sum of other markets in the year.
In particular, the real estate market by leaps and bounds, has brought a few years ago, the construction machinery industry’s "boom". Research shows that the engineering machinery industry is driven by strong to weak in turn is: real estate investment, mining investment, railway investment, highway investment and water conservancy investment.
"The era of investment led growth in the industry has passed. Who can now see the market demand for large scale in 2010 and 2011? I think the Chinese engineering machinery industry should actively adapt to the new normal economic." Liu Ceng Guangan, chairman of the board, with the Chinese economy into the new normal, the proportion of service industry and consumption will rise, the proportion of manufacturing and investment in GDP will be significantly decreased.
And by the impact of national macroeconomic regulation and control of real estate, the growth rate of real estate projects slowed down, the construction machinery industry has also emerged in the development of low tide. At present, China’s large and small construction machinery enterprises more than a thousand. "In the future a lot of enterprises are going to fail, who can be the first to go out of the predicament, who’s competitive ability, will live to the end." Qi Jun, chairman of China Construction Machinery Industry Association, pointed out that the accumulation of the early stage of the construction machinery industry, the problem of the accumulation of short-term internal management, performance in the enterprise internal management, external marketing and growth mode, etc.
There are still variables in the incremental demand for foreign investment, while the decline in domestic investment growth is more certain matters. Guotai Junan analyst Lv Juan bluntly, engineering machinery industry fundamentals in 2015 will not bottomed out, will continue to decline.
However, after entering the new economic norm, China continues to increase infrastructure investment, especially in transportation, energy, water conservancy, new urbanization and shantytowns, most of the projects will be implemented in the next two years. This is heavily dependent on investment in the field of industrial machinery, is undoubtedly a huge positive.
Net profit compared with the same period last year, will be reduced by 60% - 70%. In fact, this is the three consecutive year, Sany profits decline. Its 2011 net profit is 8649000000 yuan, in 2012 reduced to 5686000000 yuan, in 2013 reduced to 2904000000 yuan, compared with 2012 reduced by 48.96%.
Notice, the main reason is that the performance of the pre reduction in 2014, the macroeconomic growth rate down, investment in fixed assets, especially real estate investment continued to slow down the impact of engineering machinery products demand is sluggish, making the company’s operating income and net profit fell relatively large".
Another construction machinery giant ZOOMLION’s decline is more obvious. Its January 24th released 2014 results notice shows that the company’s net profit over the same period last year fell 70%-80%, profit 768000000 - 1152000000 yuan. Last year, the results show that the profit of 3839000000 yuan in 2013.
Similarly, ZOOMLION forecast explained that by the national investment in fixed assets, especially real estate investment growth continued to slow down the impact of engineering machinery products market demand is not natural, so that the company’s overall operating income and net profit fell relatively large."
In addition, several other engineering machinery companies are not expected to appear the profits of large landslides. Xugong 2014 forecasts, annual profit 4 to 561000000 yuan, 1602000000 yuan more than in 2013 dropped by 65% - 75%. Liu industry in the first three quarters of 2014 net profit of about 180000000 yuan, a decrease of 36.51%.
The only exception is Lanzhou’s blue stone heavy equipment Limited by Share Ltd. 2014 yejiyuzeng notice, is expected to the annual implementation net profit compared with the same period last year will increase 720%~820%, reached 4937.35_wan million yuan. However, growth of its performance does not come on the main business, but with Lanzhou Lanshi Group Co., Ltd. signed out of the city into the park relocation compensation agreement, compensated 492 million yuan of funds. Without this compensation funds, blue stone reload will loss of 442000000 yuan.
"At present our country excavator industry capacity has more than 400000 / year, and the global annual demand for excavator is still less than 400000 units, although many engineering machinery manufacturers have planned to stop production, cut, but still have a lot of product backlog in the warehouse." China Construction Machinery Association excavator branch secretary general Li Hongbao has said that the industry is in the transition and upgrading of the downward adjustment period, the market demand is weak, overcapacity, falling profits and other issues.
"The construction machinery industry for the past fifteen years, only the summer, no autumn, now from the summer suddenly into the winter, we all feel the life is not good." November 5, 2014, in the development of China’s engineering machinery development forum, Liu workers
2015 1 by the end of, the major construction machinery companies have announced the results of the 2014 forecast. As expected, the net profit of the major sectors of the company generally fell sharply, and some even fell to 80%.
This downward trend has continued for three years. According to the China Construction Machinery Industry Association statistics show that in 2012, the annual sales income of 86 enterprises fell by 8.16%, the total profit fell by 35.44%; in 2013, 93 enterprises and the year on year, sales revenue fell by 11.74%, the total profit fell by 32.56%. Today, the market seems to fall far from the bottom.
Liu Ceng Guangan, chairman of the truth, the construction machinery industry for the past fifteen years, only the summer, no fall. Now from the summer suddenly into the winter, we all feel life is not good."
However, as China’s economic growth mode to enter the new normal, infrastructure construction has become one of the engines of economic growth. Zoomlion estimates, infrastructure construction will be along the way of planning in the first to be carried out on the field, the equipment manufacturing industry is a major positive, can help the excess capacity to digest, and relocation of production capacity will also become the industry’s "new normal".
Expectations of the future situation, Qi Jun, President of China Construction Machinery Industry Association said, "construction machinery industry is still in temporary ’pains’, is still facing greater challenges, but national economic development overall turnaround, adjustment in the breeds new opportunities for development."
Profit after years of decline
January 27th, Sany Limited by Share Ltd (referred to: Sany) released results notice, expected in 2014
However, like other board chairman, Ceng Guangan is willing to talk about corporate globalization strategy. He hopes that by 2020, Liu workers can become a truly global enterprise.
In fact, the construction machinery will explore overseas markets as an important measure to digest capacity, get rid of the dilemma. In November 2014, the prime minister held a forum to answer the question of how the enterprise ’going out’ situation, as ZOOMLION’s helm, Zhan Chunxin given the number of 20%.
Obviously, Zhan Chunxin is not satisfied with this number. 2014, ZOOMLION has completed the acquisition of German M-TEC company, Holland RAXTAR construction lift technology company and Chery heavy industries, the establishment of an Indonesian subsidiary and financial company; oversea company Brazil service center was built and officially put into use.
And the layout of the earliest in the international business is Sany. Its 2013 international sales revenue 10874000000 yuan, accounting for 29.92% of the company’s sales revenue, export growth rate of the industry first, covering more than 110 countries and regions. UBS Securities analyst Li Bo is expected in 2017 Sany overseas revenue will reach 20000000000 Yuan, accounting for 47% of revenue.
Need to point out that in 2013 China’s construction machinery exports reached $19500000000, Asia is the main export market, accounting for 47%. Along with the promotion of the "along the way", with overseas market experience of the enterprise is expected to get more market share.
"The success of China’s infrastructure construction is the best publicity of China’s construction machinery industry. ’along the way’ is bound to drive the export of machinery industry, especially the export of integrated engineering machinery." Guotai Junan analyst Lv Juan said, leading enterprises in the industrial layout route "along the way".
However, Liu Ceng Guangan, chairman of the Board believes that the Chinese construction machinery industry should actively adapt to the current economic new normal, the first is in the technical innovation and quality improvement. He believes that in the future a long time, China is still the world’s largest construction machinery market, so the Chinese market is still our main battlefield, but also the main battlefield of the world’s best companies."
(source: global hardware network)