Fastener Shanghai
fastener
Official WeChat
fastener
fastenerHomefastener
fastener
fastenerNewsfastener
fastener
fastenerfastenerBuyers' Guidefastener
fastener
fastenerStandard Searchfastener
fastener
fastenerFor Buyersfastener
fastener
fastenerFor Suppliersfastener
fastener
fastenerMagazinefastener
fastener
fastenerTrade Showsfastener
fastener
fastenerMy Officefastener
fastener
fastenerPost Inquiriesfastener
Home->Fastener News->Machinery sector sees momentumYou are the 682392 visitors
Views:256   |   recommendation:   |   Votes:0   |   Discuss:0
Machinery sector sees momentum

Sany Heavy Industry employees assemble trucks at a production facility in Changsha, capital of Hunan province. [Photo/Xinhua]

Strong infrastructure demand, enhanced capabilities boost companies' earnings

Major Chinese machinery equipment makers said their net income in the first six months may have doubled compared to the same period last year, taking advantage of strong infrastructure demand and the companies' enhanced capabilities.

Sany Heavy Industry Co Ltd, based in Changsha, Hunan province, predicted its net profit attributable to shareholders could reach between 6.5 billion yuan ($945 million) and 7 billion yuan, an increase of 92 percent to 107 percent from the same period last year.

"The main driving force for Sany's future growth will remain the overseas markets, which is also the company's priority," Fortune Securities Analyst Huang Hongwei said in a research note.

The manufacturer said several products such as excavators, concrete mixers and cranes posted rapid sales growth while its profitability increased significantly in the year's first half.

"Sany's export target of excavators is to reach 10,000 units in 2019.Overall, the overseas excavator market is expected to maintain a growth rate of around 5 percent in the next few years, so the company anticipates good demand for its products in overseas markets," Huang said.

The company attributed the robust returns to rising infrastructure demand and the company's enhanced core competence.

Zoomlion Heavy Industry Science and Technology Co Ltd, which is also based in Changsha, estimated its net profit attributable to shareholders could reach a maximum of 2.7 billion yuan in the first half, up 212 percent year-on-year.

The growth was driven by strong demand from the real estate and infrastructure industries, and strict cost control by the company, Zoomlion said in a statement.

Xuzhou Construction Machinery Group said its January to June net income could hit between 2.1 billion and 2.4 billion yuan, an increase ranging from 90 percent to 117 percent.

The construction machinery manufacturing industry is a highly cyclical business.

In China, the industry was confronted with a recession between 2012 and 2016 because of a glut. After expanding over the past two years, growth in the industry began slowing down last year.

Zhang Cheng, an analyst with Huatai Securities, said the growth rate of companies related to infrastructure and real estate investment will be higher than others.

Global uncertainties will continue to have an impact on the industry and lead to an industrywide shakeout. Companies that are globally competitive are expected to post better than expected results, Zhang said. The life cycle of mechanical equipment is roughly between eight and 10 years.

China International Capital Corp said in a report that many owners would replace their old equipment with new machines this year. "The demand for excavator replacement would reach 140,000 units," the report said.

Source: China Daily

2019/7/22 15:05:00

Previous:    China sees no major manufacturing exit: top economic planner
        Next:    Steel enterprises taking the smart manufacturing plunge

Recent Related News
China's excavator sales expand faster in July--2019-08-14
China's machinery sector stable in H1--2019-08-09
China's excavator sales falling in May--2019-06-19
China's mechanical industry to maintain steady growth--2019-02-27
China's excavator sales grow 27.7% in September--2018-10-26
China's excavator sales grow 33% in August--2018-09-10
Japan's core private-sector machinery orders gain 10.1 pct in April--2018-06-13
China excavator sales continue to grow fast--2018-06-12
China's excavator makers see faster sales growth--2018-05-08
China reports strong digging machine sales in Q1--2018-04-14
Rebound puts machinery on a roll--2017-10-17
China's machinery sector improves despite challenges--2017-08-11

Vote for this news?

fastener(Very Good)
fastener(Good)
fastener(Normal)
fastener(Bad)
fastener(Very Bad)


Discuss
More Discuss...
Your Name: Anonymous

Enter the code shown:fastener2fastener

Fastener Trade Show Suzhou



China Fastener Directory
Get it FREE!
fastener
Get your CFD at the following shows:

•The Fastener Exhibition & Conference, Sep 11-12, 2019, Birmingham, UK

•International Fastener Expo, Sep 17-19, 2019, Las Vegas, USA

•wire & Tube Southeast Asia, Sep 18-20, 2019, Bangkok, Thailand



Show Room



Offer Product

Latest News
• Bossard buys aerospace distribution business

• Nedschroef appoints Dr Matthias Sckuhr as the new CEO

Buyers' Guide
Company News

• Shanghai Fast-Fix: To Be the Preferred Supplier of Fastening Solutions to Automotive Industry Worldwide

• Yuxin Fastener System: Dedicated to Becoming the Leading Manufacturer of Anchors in China

The Way to Enter Chinese Market
The Way to Enter Chinese Market


fastener