According to a research report released by Zhongyuan Securities, the sales volume of excavators in August 2022 will remain the same as in 2021, and exports will grow rapidly, accounting for nearly 50%. The bank believes that in 2022, with the fundamentals bottoming out, construction machinery is expected to usher in investment opportunities for valuation restoration. It is recommended to pay attention to Hengli Hydraulics, the listed company of Sany Heavy Industry, Zoomlion, Xugong Machinery and core components of the three major main machinery manufacturers of construction machinery, and the two leading companies of forklifts, Hangcha Group, Anhui Heli, and Zhejiang Dingli, the leader of aerial work platforms.

According to the statistics of 26 excavator manufacturers by the China Construction Machinery Industry Association, in August 2022, a total of 18,076 excavator products of various types were sold, the same as the same period in 2021. Among them, the domestic market sales volume was 9,096 units, a year-on-year decrease of 26.3%; the export sales volume was 8,980 units, a year-on-year increase of 56.7%.

The 26 mainframe manufacturing enterprises included in the statistics from January to August 2022 sold a total of 179,109 sets of various excavation machinery products, a year-on-year decrease of 30.9%. Among them, the domestic market sales volume was 109,470 units, a year-on-year decrease of 49.9%; the export sales volume was 69,639 units, a year-on-year increase of 70.1%.

Excavator sales were flat in August 2021, and exports grew rapidly, accounting for nearly 50%

In August 2022, a total of 18,076 excavation machinery products of various types were sold, which was the same as the same period in 2021. Among them, the sales volume in the domestic market was 9,096 units, a year-on-year decrease of 26.3%; the export sales volume was 8,980 units, a year-on-year increase of 56.7%.

In July 2022, the sales volume of excavators was 17,939 units, a year-on-year increase of 3.42%; in August, the sales volume of excavators was 18,076 units, flat year-on-year. In July and August, there was flat or slight growth for two consecutive months, indicating that the construction machinery industry has basically bottomed out, but in the case of a low base in 2021, there is still no obvious growth, indicating that industry demand is still sluggish, no A more positive trend emerged.

In August, the export sales of excavators were 8,980 units, a year-on-year increase of 56.7%. The rapid growth of exports has greatly offset the decline in domestic sales. In August, the export sales of excavators accounted for 49.68% of the sales in August, which was close to 50%, and the proportion of exports gradually increased. Good results have been achieved.

Domestic sales in August were 9,096 units, down 26.3% year-on-year. In terms of tonnage, in August, the sales volume of large excavators was 1308 units, the sales volume of medium excavation units was 1915 units, and the sales volume of small excavation units was 5873 units, down 59.92%, 69.80% and 57.05% respectively year-on-year. From January to April 2022, the cumulative sales volume of big excavation was 7048 units, the cumulative sales volume of medium excavation was 15415 units, and the cumulative sales volume of small excavation was 45445 units, down 32.6%, 47.8% and 12.8% respectively. The demand for small mining is better than that for medium mining, continuing the industry trend since 2021.

The local government has stepped up efforts to ensure the delivery of buildings and stabilize people's livelihood, the issuance of local special bonds has accelerated, and the demand for construction machinery is expected to usher in a bottoming rebound

The Political Bureau of the Central Committee of the Communist Party of China held a meeting on July 28 to analyze and study the current economic situation and plan the economic work in the second half of the year. The meeting pointed out that it is necessary to stabilize the real estate market, adhere to the positioning that houses are used for living, not for speculation, make full use of the policy toolbox for city-specific policies, support rigid and improved housing needs, compact local government responsibilities, and ensure payment. Building, stable people's livelihood. This is the first time that "guaranteeing the building" has been written into the Politburo meeting documents.

Since August, the work of "guaranteeing the delivery of buildings and stabilizing people's livelihood" has continued to advance. The Ministry of Housing and Urban-Rural Development, the Ministry of Finance, the People's Bank of China and other relevant departments have recently introduced measures to improve the policy toolbox and support the construction and delivery of residential projects that have been sold overdue and difficult to deliver through special loans from policy banks. Real estate enterprises, as the main body responsible for guaranteeing the handover, actively dispose of assets, raise funds from various parties, and strive to complete the task of guaranteeing the handover. In order to prevent the risk spillover of real estate enterprises, the local government takes the territorial responsibility of "guaranteing the handover of buildings and stabilizing people's livelihood", and helps enterprises to ensure the handover of buildings. With the concerted efforts of many parties, the resumption of work and production by housing companies "guaranteing the delivery of buildings" has entered an accelerated stage. Stimulated by the real estate guarantee and handover, the demand for construction machinery is expected to usher in a significant improvement.

In September, Li Keqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, presided over a special meeting of the State Council and listened to reports on the supervision and service work of two groups of working groups going to 16 provinces to stabilize the economic market. Li Keqiang said that stabilizing the economy depends on market players, and while helping enterprises to bail out, promote consumption recovery as the main driving force, and make greater efforts to expand effective investment, so as to create demand and boost confidence for market players. Accelerate the construction of key projects, increase the quota of policy development financial instruments according to local needs, and include the projects started in the first half of the year into the scope of support, and form more physical workloads in the next few months of 2022. Use periodic fiscal discounts, super deductions for R&D expenses, policy-based financial tools, etc., to support the renovation of equipment in weak areas.

The accelerated issuance of local special bonds in advance represents the strong will of the government to stabilize growth. Driven by real estate companies guaranteeing the delivery of buildings, resuming work and production, and superimposing steady growth, the demand for construction machinery is expected to usher in a bottoming rebound. Editor / Xu Shengpeng