Meet Multiple Favorable Construction Machinery Market Demand is Expected to Pick Up
On February 21st, the China Construction Machinery Industry Association released data that it is expected that the industry will face certain pressure in the first quarter of 2023, but over time, the pressure will gradually ease, and the domestic market demand for the whole year will be better than in 2022; The construction machinery industry will achieve effective improvement in quality and reasonable growth in quantity. Industry insiders say that special bonds have helped the prosperity of the infrastructure industry rebound, and the number of project starts continues to increase. At the same time, policies in the real estate industry are gradually easing, and the sales of construction machinery are expected to rise.
Strong demand in overseas markets
After enduring multiple tests, the construction machinery industry achieved stable development in 2022. Among them, exports played a prominent supporting role, and the overall economic operation throughout the year met expectations. "Su Zimeng, President of the China Construction Machinery Industry Association, introduced the industry development situation in 2022.
According to data from the China Construction Machinery Industry Association, the sales of major products in the construction machinery industry in 2022 have significantly decreased compared to 2021. Among them, 261000 excavators were sold, a year-on-year decrease of 23.8%. From a market perspective, the export of excavators reached 109000 units, a year-on-year increase of 59.8%; Domestic sales of 152000 units decreased by 44.6% year-on-year.
In 2022, China's export of construction machinery reached a new record, reaching 44.302 billion US dollars, on the basis of a record breaking 34 billion US dollars in 2021.
It is worth noting that among the export products of construction machinery, the export of high-tech construction machinery has signifi cantly increased, with the export value of crawler excavators increasing by 65.8% year-on-year.
Due to multiple factors, many listed engineering machinery companies experienced a decline in performance and even suffered losses in 2022. Among them, Sany Heavy Industry, the leader of construction machinery, is expected to have a net profit attributable to shareholders of the listed company of 4 billion to 4.6 billion yuan in 2022, a year-on year decrease of 66.76% -61.77%. In response, Sany Heavy Industry stated that due to the downward adjustment period of the domestic construction machinery industry, coupled with factors such as a slowdown in macroeconomic growth and insufficient effective construction efficiency, the demand in the domestic construction machinery market has significantly decreased, and the operating revenue has decreased significantly.
Enterprise Batch Delivery Orders
With the continuous introduction of real estate support policies and the strong demand in overseas markets, the construction machinery sector in the secondary market has shown an upward trend since 2023. According to Wind data, as of February 22, the construction machinery sector has increased by 24% this year. Among them, Sany Heavy Industry and XCMG Machinery saw growth rates of 22.41% and 39.84% respectively.
After the Spring Festival, construction machinery enterprises quickly entered the busy season of batch order delivery. On February 17, XCMG said that more than ten XCMG cranes had recently been delivered to Karamay, Xinjiang, in batches, following the hot trend of large tonnage products settling in Xinjiang last year.
At the same time, construction machinery enterprises continue to explore overseas markets. On February 19th, Sany Heavy Industry announced that Sany India made its debut with the latest localization achievements and received orders and intended orders exceeding 600 million yuan.
In addition, XCMG Machinery recently announced that it plans to use no more than 1 billion yuan to repurchase shares for the implementation of equity incentives. Industry insiders say that this further demonstrates XCMG's confidence in future development. The person in charge of XCMG Machinery told reporters, "I am optimistic about the development of the entire industry this year. The overall judgment is' low in the front and high in the back, progress in stability, quality improvement in stability, and improvement in stability.
The person in charge of XCMG Machinery stated that the construction machinery industry is expected to improve this year, and the year-on year decrease in sales of major products in the construction machinery industry will continue to narrow compared to 2022. The industr
y will experience a stable recovery in 2023.
Industry prosperity recovery
According to data from the Construction Machinery Industry Association, sales of major products of construction machinery were relatively sluggish in January due to various factors. According to the data from the first half of February, the situation has improved.
Su Zimeng said, "There are many factors that are conducive to the stable development of the construction machinery industry in 2023, including increased macroeconomic policy regulation, the gradual bottoming out of real estate, and the strengthening of investment driving effect. Major projects and major projects have started one after another, infrastructure construction has accelerated, special bond issuance has accelerated, and policy banks have increased their new loan issuance.
Su Zimeng predicts that the entire industry will face some pressure in the first quarter, but over time, the pressure will gradually ease, and the domestic construction machinery market demand for the whole year will be better than in 2022; The export volume is expected to remain at a high level. The construction machinery industry will achieve effective improvement in quality and reasonable growth in quantity.
Dongguan Securities stated that special bonds have helped the prosperity of the infrastructure industry rebound, while policies in the real estate industry have gradually been optimized, leading to an increase in demand for construction machinery and an expected increase in sales of construction machinery.