Machinery industry sales increased by more than 30%, high allocation is a high probability event

Abstract The machinery industry achieved a record high growth last year, with sales value increasing by 34.26% year-on-year. As a leader in the industry, the performance of listed machinery companies last year was equally impressive, with 30% of the company's net profit doubled in the performance forecast. This gives shareholders a high expectation of allocation. ...

The machinery industry achieved record high growth last year, with sales value increasing by 34.26% year-on-year. As a leader in the industry, the performance of listed machinery companies last year was equally impressive, with 30% of the company's net profit doubled in the performance forecast. This gives shareholders a high expectation of allocation.
The data shows that the 22 machinery industry companies that have published the performance report have realized a net profit of 2.883 billion yuan attributable to shareholders of the parent company, an increase of 32.1% over the previous year of 2.183 billion yuan.
The performance forecasts of the 103 mechanical companies that have been announced show that 84 companies expect a performance increase of more than 10%, and only 19 companies have experienced a decline in performance. There are 32 companies with a growth rate of more than 100%, accounting for 31%.
According to the recently released industry data, in 2010, the machinery industry completed sales of 140,593.66 billion yuan, a year-on-year increase of 34.26%, an increase of 18.15 percentage points over the same period of the previous year. Among them, the growth of production and sales of construction machinery and machine tool industry was outstanding, with an increase of 48.09% and 40.95% respectively, and the growth rate was up by 23% over the previous year.
In terms of construction machinery, excavation and earthmoving transport machinery products maintained rapid growth, among which excavators and loaders grew faster, with a year-on-year increase of more than 45%. The concrete machinery with lower growth rate is also kept above 9%.
Under the influence of the national agricultural machinery subsidy policy, the output of major agricultural machinery products increased rapidly, and the growth of large tractors, on-the-job machinery and grain processing machinery increased by more than 30%. In particular, grain processing machinery grew rapidly, up 50.88% year-on-year.
There is no doubt that the industry is growing rapidly. There are two points of concern for the annual report: the magnitude of growth and high allocation.
High growth naturally gives shareholders the expectation of dividend distribution. In fact, some mechanical companies have always been more positive about dividends. Jiangte Electric (002176), Dayang Electric (002249) and Changlin (600710), which have published annual reports, have launched annual dividend plans. Among them, Jiangte Motor intends to send 10 to 8 to send 0.35 yuan, and Ocean Electric intends to send 10 to 2.8 yuan.
This year's growth rate will slow down Analysts expect that the economic operation of the machinery industry is expected to achieve a growth rate of around 15% in 2011 compared with the previous year.
From the favorable factors, the overall economic operation environment of the machinery industry is good, and the comprehensive launch of seven strategic emerging industry development plans such as energy conservation and environmental protection, high-end equipment manufacturing and new energy vehicles will bring about the construction of a large number of industrial upgrading projects. In 2011, the global economy began to gradually recover, and the foreign trade market showed a recovery growth. The overall situation will not be worse than 2010.
From the unfavorable factors, the inherent internal growth momentum of machinery enterprises still needs to be strengthened; the investment growth rate begins to decline, and the investment demand is difficult to be optimistic; the overall RMB is still on the rise, and the import of machinery products will continue to grow at a high speed.
Analysts pointed out that although the decline in real estate and infrastructure growth in 2011 is a high probability event, the construction of affordable housing and the acceleration of urbanization will be a new round of investment opportunities for the machinery industry.
Real estate investment is expected to remain between 21% and 28% in 2011. The growth rate of real estate investment will help to ensure that the absolute level of construction machinery sales remains at a high level.
Among the main products of construction machinery, concrete machinery enterprises are most optimistic about sales in 2011. The demand for concrete machinery is not only driven by investment in real estate and infrastructure fixed assets, but also driven by the rapid spread of commodity concrete machinery. The mainstream concrete machinery companies expect that the sales of concrete machinery will increase by more than 50% in 2011.
 

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