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As we approach the end of the year, check the performance of the construction machinery sector, and the leading companies in this sector have been on fire for two years. Since 2020, the leading companies represented have ushered in the performance and valuation "Davis Double Click". Since the beginning of this year, the construction machinery sector index has risen by 64.43%, which has slightly exceeded the annual growth rate of 2019.
The construction machinery industry began to rebound in demand since the second quarter. In the second half of the year, the performance growth of listed companies in this industry generally exceeded expectations. The high growth rate for the whole year of 2020 is a foregone conclusion. After several consecutive years of industry growth, the market pays more attention to the changes in the boom of the construction machinery industry in 2021.Recently, a reporter from the Financial Association Press, according to feedback from some leading machinery companies and institutions, shows that the entire construction machinery industry has strong demand and sufficient orders. The boom in 2021 will continue. Under the background of high base growth this year, the growth rate may slow down next year. , The growth center of excavators is expected to be around 10%. Benefiting from factors such as artificial replacement, environmental protection upgrades, and overseas market expansion, leading companies are expected to continue to increase their valuations as their market share increases.
Recap: Demand will recover quarter by quarter in 2020, and industry indexes will grow at the top
There are many types of construction machinery, with excavating machinery, concrete machinery and hoisting machinery being the main categories. Among them, excavators are the "barometer" of the construction machinery industry. In the first November of this year, excavator sales exceeded expectations, with 296,000 units sold. A company expects that annual sales are expected to reach 320,000 units or more, a year-on-year increase of 36%. Combining multiple sets of data such as monthly sales volume and orders in hand, it proves that construction machinery has continued to prosper throughout the year.
Statistics show that, except for the January-February, which was significantly affected by the epidemic, sales of excavators have rebounded significantly since March, and have basically stabilized at more than 50% monthly growth since April. Demand has recovered quarter by quarter, and sales of excavators have continued to rise throughout the year. A growth rate of over 30% is a foregone conclusion.
According to agency estimates, a heavy job is the leader in the domestic excavator market, and its monthly share in November 2020 has increased to 33%. An insider of the company told a reporter from the Financial Association that the increase in the company's product market share is due to many factors, including capacity expansion, product quality, brand influence, and supporting services. After the company’s “Lighthouse Factory” project was put into production, production efficiency increased by more than 30%. Digitization, intelligence, and large-scale production will reduce product costs. In addition, the continuous improvement of the quality of Chinese construction machinery products will result in an increase in market share .
Not only is the excavator sales hot, but the crane has become a popular product this year. "This year, cranes are hard to find, especially those with large tonnage. The company is still unable to meet market demand with full production."
Coincidentally, the reporter learned from a heavy industry insider that in the first three quarters of this year, the company's engineering cranes had shipped more than the whole year of last year, and the order volume of large-tonnage crawler cranes had reached the second half of 2021, and the market was in short supply.
Thanks to the boom in product production and sales, leading construction machinery companies have achieved double performance and valuation. In terms of performance, from Q1 to Q3 of 2020, the performance of leading construction machinery companies is generally improving. Taking Hunan related listed companies as an example, SANY's first three quarters revenue increased by 24% and 34.7% year-on-year; Zoomlion's first three quarters Revenue and net profit increased by 42% and 63% respectively; Sunward's revenue and net profit increased by 25.6% and 19.8% respectively in the first three quarters.
From the performance of the secondary market, from January 1, 2020 to December 17, 2020, the construction machinery index rose by 64.43%, far outpacing the Shanghai and Shenzhen 300 Index by 40 percentage points.
Outlook: Next year's growth rate may slow down year-on-year, and the growth rate of excavators is about 10%
Everything in the past is a prologue. The sales volume of excavators in 2019 was 235,693 units, a year-on-year increase of 15.9%; from January to November 2020, a total of 296,075 excavators were sold, a year-on-year increase of 37.4%. With the high growth base in 2020, can construction machinery continue to be popular next year? The heads of several related listed companies in Hunan are all optimistic about the market next year and believe that 2021 will still be a good year.
