The booming construction machinery market this year far exceeded market expectations.

According to industry experience, with the intensive start of construction projects, each March is the peak season for sales of construction machinery. In the first quarter of this year, under the support of strong macroeconomic growth, the construction machinery market ushered in unexpected joy.

Sany Heavy Industry No. 18 Factory

Best business performance in history

According to data from the China Construction Machinery Industry Association, in 2020, under the joint promotion of new infrastructure and traditional infrastructure projects, the sales of excavators in my country will exceed 328,000 units, a year-on-year increase of 39%. From January to February of 2021, the 26 main engine manufacturing companies included in the statistics sold a total of 47,906 units of various excavator products, a year-on-year increase of 149.2%. Among them, the sales volume in February reached 28,305 units, setting a record high in excavator sales.

Not only excavators, other construction machinery products are also booming in production and sales.

According to a reporter from China Economic Weekly, the sales of Zoomlion's concrete pump trucks and crawler cranes are extremely hot, with a single piece of equipment costing millions of yuan, and the price of super-large crawler cranes starting at 10 million yuan. Even if the price is high, such a giant device is still being looted this year.

Citizens working in the Lugu High-tech Zone in Changsha complained that this year, the roads near Zoomlion Lugu Industrial Park had too many equipment waiting to be shipped, and there were frequent traffic jams during the last one or two months.

To grab equipment is to grab the schedule and profit. The operating rate of construction machinery products also continued to grow.

At Sany's No. 18 factory in Changsha County, a large screen of Sany's root interconnection platform shows that more than 600,000 construction machinery products across the country are under construction day and night, and the changes and fluctuations very intuitively reflect the infrastructure construction in various places. Happening.

Data analysis provided by Sany Heavy Industry shows that in March 2021, with the exception of piling equipment and port equipment, the overall construction machinery operating hours have maintained an increase for three consecutive months. Among them, the fastest-growing truck crane operation time increased by 66.8% year-on-year, concrete equipment (mixing station) operation time increased by 32.7% year-on-year, and road equipment (pavers, road roller) operation time increased by more than 20% year-on-year.

The market is booming. Whether it is the leading companies such as Sany Heavy Industry, Zoomlion, Xugong Machinery, or market segment companies such as Sunward Intelligent, Liugong, etc., they have all come up with "blindly eye-catching" performance.

In the first quarter of this year, Zoomlion expects its net profit to increase by 114.41% to 153.39% year-on-year, which is the best first-quarter profit in the company's history; Sunward Intelligent is expected to increase its net profit by 80% to 130% year-on-year; XCMG expects its net profit to increase by 137.17% year-on-year ~186.24%; Sany Heavy Industry is expected to increase its net profit by 137% to 164% year-on-year; Liugong is expected to increase its net profit by 100% to 172% year-on-year.

In short, it is a doubling of growth.

According to the financial report of Zoomlion, in 2020, the company achieved operating income of 65.1 billion yuan, a year-on-year increase of 50%; net profit attributable to the parent company was 7.28 billion yuan, a year-on-year increase of 66.6%. On April 9th, Zhan Chunxin, Chairman and CEO of Zoomlion, said that Zoomlion has achieved the best operating performance and the highest operating quality in history in 2020.

This can be used as a summary of the entire industry.

Industry boom, sales of construction machinery surge

Where does the growth momentum come from?

The answers given by various agencies are similar: infrastructure demand is driven, the country strengthens environmental governance, and the demand for equipment renewal grows. These are almost the standard answers for analysts.

The Caixin Securities Research Report believes that the continued prosperity of the infrastructure industry was the main reason for the high sales of excavators in March. As of early March this year, 28 provinces and cities across the country have issued infrastructure fixed asset investment plans for 2021, with a total investment of 3.2 trillion yuan. , Drove the sales of excavators, especially medium-sized excavators.

The research report also mentioned that the sales of excavators have also been released to a certain extent, driven by the demand for equipment renewal and the replacement of labor by small excavators.

This is another driving force behind the surge in sales of construction machinery. Yang Duzhi, secretary of the board of Zoomlion, told the reporter of China Economic Weekly that the renewal cycle of construction machinery and equipment is about 10 years. Around 2011 was the peak of the previous wave of construction machinery sales. Equipment sold 10 years ago will be around 2021. A few years have reached the period of concentrated renewal. In addition, the improvement of national environmental protection standards and the phasing out of previous sales equipment will bring a certain amount of room for growth.

The whole industry is booming, but the happiness of each family has its own taste.

Wang Yongxiang, vice president of Zoomlion, revealed that the company's sales of construction hoisting machinery have steadily ranked first in the world, and the market share of crawler cranes has increased significantly for 4 consecutive years, ranking first in the industry in 2020, and orders for large-tonnage crawler cranes are scheduled to 2021 The second half of the year.

Compared with other construction machinery companies, Zoomlion also has an agricultural machinery sector. In 2020, its revenue will exceed 2.6 billion yuan, a year-on-year increase of 67.01%.

Sunward’s Secretary of the Board Wang Jian revealed to China Economic Weekly that in addition to the market’s pulling effect, the company’s production capacity release and product structure adjustments have also played a significant role in supporting performance. Among them, excavators and rotary drilling rigs have become the company’s leading products. , The growth rate exceeds the industry average.

As an old state-owned enterprise, XCMG Machinery is expected to transform into the "new XCMG" in 2021. In March, the controlling shareholder of the listed company Xugong Machinery completed the mixed reform, the shareholding ratio of Xugong Group dropped to 34.1%, and the employee shareholding platform held 2.7% of the shares of Xugong Co., Ltd. On April 7, XCMG's major assets were suspended for reorganization and planned to inject into the excavator business of the major shareholder.

According to data from the China Construction Machinery Industry Association, XCMG's excavator sales volume is 52,000 units in 2020, an increase of 57% year-on-year, and the market share is 16%.

Looking at Sany Heavy Industry, in 2020, its excavator market share will reach 28%, ranking first in the domestic market for 10 consecutive years, and it is the largest business segment of Sany. The president of the company introduced to Wenbo that in the first quarter of this year, the growth rate of Sany excavators doubled, setting a record of over 10 billion yuan in monthly sales.

Strong growth in overseas markets

Can the doubling growth in the first quarter be maintained for a long time?

According to Caixin Securities Research Report, more than half of the excavator sales from 2019 to 2020 are due to the demand for updates. According to estimates, since 2019, the demand for updates has been declining year by year. The sales volume of the construction machinery industry in 2021 is expected to increase by 10% to 15% year-on-year.

When interacting with investors, Sunward Intelligent said that it remains optimistic about the overall market situation this year. Zoomlion predicts that multiple benefits will help the construction machinery industry continue its high boom. In 2021, the growth rate of the industry's main products will exceed 20%.

Xiang Wenbo believes that there will be some fluctuations in the domestic construction machinery market, but more new environmental upgrades and an aging population will accelerate the replacement of machines. He also mentioned that there are relatively large opportunities in overseas markets.

In fact, since last year, the domestic market situation has been very good, and the momentum of my country's construction machinery overseas market has also grown significantly.

In 2020, the sales revenue of Sunward intelligent excavators in Europe will increase by more than 40%. Wang Jian introduced that in January this year, Sunward made the first global shipment of its products. There are excavators, rotary drilling rigs, hydrostatic pile drivers, cranes, aerial work platforms, etc., with a total amount of nearly 600 million yuan. The equipment is shipped to more than 30 countries and regions around the world, and the international orders in the first quarter have completed 70% of the annual plan.

According to XCMG's official website, in 2020, despite the impact of the epidemic, XCMG's overseas sales of excavators will continue to rise against the trend, especially in the first quarter of 2021, the high-end markets in Europe, America and Australia will increase by nearly 50% year-on-year. On April 2 this year, more than 200 excavators were shipped overseas.

Nevertheless, judging from the data of the company's 2020 annual reports, whether it is Sany Heavy Industry, Xugong Machinery, Sunward Intelligent, etc., each company's overseas sales accounted for less than 20%, and there is still room for growth in the future.