Safeguarding Housing Benefits for Machine Excavators Benefits Clearly

Recently, media reports said that the Ministry of Housing and Urban-Rural Development had requested that various types of affordable housing projects planned this year must be fully started before October 30. Affected by this news, engineering machinery stocks will be stronger. In addition, investment in water conservancy construction has also become a strong support for construction machinery stocks. Analysts pointed out that from an overall perspective, the construction of affordable housing, water conservancy, and high-speed railways will ensure that the absolute sales volume of construction machinery will remain high in 2011.

Analysts pointed out that although with the introduction of the eight countries and the real estate macro-control policies, the construction machinery industry will have a certain negative impact, but affordable housing will to a certain extent reduce the impact of real estate regulation. In addition, the increase in “No. 1” water conservancy construction investment will also support the construction machinery industry.

Ma Dongfan, an analyst at Monita Investment Equipment Manufacturing, believes that construction machinery companies and distributors are generally optimistic about sales in the first quarter. Although the growth rate of fixed asset investment and the decline in real estate investment growth will inhibit the growth of sales of construction machinery, the construction of affordable housing, water conservancy, and high-speed rail will also ensure that the absolute level of sales of construction machinery will remain high. From the aspect of product structure, we are optimistic about the rapid increase in the sales volume of concrete machinery during the rapid promotion period of commercial concrete.

Liu Yuanrui, an analyst at Changjiang Securities, believes that construction machinery sales data exceeded expectations in the first quarter of the year as a high probability event. It is estimated that the income growth rate of construction machinery industry in 2011 will be 16.6-27.9%, while the market consensus is expected to be 15-20%. In 2011, as the 12th and 5th year, infrastructure construction is likely to become the main force for pulling demand for construction machinery. Real estate regulation and credit tightening have become the biggest uncertainties in the construction machinery industry.

Liu Yuanrui believes that with the market concentration degree of the construction machinery industry will further increase, advantageous enterprises may achieve far more than the industry's growth rate with their superior products, and experience continuous prosperity during the process of urbanization in China.

Analysts generally believe that in the long run, taking into account the development trend of urbanization, and the development of new industries such as railway construction, regional planning, affordable housing, and export recovery, the average annual growth rate of construction machinery industry will continue in the next 3-5 years. Stay at a higher speed.

Excavator performance highlights the protection of housing construction and construction of water conservancy projects to inject cardiac agents into the construction machinery industry.

GF Securities believes that affordable housing and water conservancy investment will continue the construction machinery boom until after 2011.

Due to the promotion of water conservancy construction, the sales of bulldozers entered the preheating stage. In January, the sales of bulldozers increased by 78.9% year-on-year, and the sales of major excavator manufacturers exceeded 10,000, a year-on-year increase. The market continued its high growth last year.

Industry experts said that during the “Twelfth Five-Year Plan” period, the excavator will become a key force in construction machinery products, directly driving the construction machinery industry to achieve rapid growth. Excavators are the most potential types of construction machinery in the market in 2011.