According to the statistics of the Mining Machinery Branch of China Construction Machinery Industry Association, in July 2018, the industry sold a total of 11,123 various types of excavation machinery products, a year-on-year increase of 45.3%. Among them, the domestic market sold 9316 units, a year-on-year increase of 33.2%; the export sales volume was 1786 units, a year-on-year increase of 171.0%. The 25 main manufacturing companies that were included in the statistics from January to July 2018 sold a total of 131,246 types of excavation machinery products, a year-on-year increase of 58.7%. Among them, the sales volume in the domestic market was 120,492 units, a year-on-year increase of 54.8%; the export sales volume was 10,681 units, a year-on-year increase of 171.0%.
The growth rate in the off-season is stable, and the construction machinery industry has a high degree of prosperity. In July, the domestic market digs, digs and digs 1762, 2680, and 4874 units, an increase of 42.6%, 40.8%, and 26.5%. In July, the traditional sales season was low, and the sales volume of excavators continued to grow steadily, indicating that the continuous increase in downstream infrastructure, real estate, and municipal projects during the peak period was gradually confirmed by the market. Since July, Liugong, Xugong Machinery, Sany Heavy Industry and other leading companies have issued semi-annual performance forecasts, and the net profit growth rate of 18H1 mothers has generally reached more than 100%. Among them, the performance of excavator leading Sany has increased by 180%-210%. Big supermarket expectations. This round of excavator market is the reaction of the real demand after the market clears out, the growth foundation is more solid, the industrial chain main engine factory is more mature and rational, and the overall future development of the industry is expected to continue to improve.
The export data is beautiful, overseas demand is improving, and Asia, Africa and Latin America are basically not affected by the trade war. In July, the export volume of various types of excavators in China was 1,786 units, a substantial increase of 171.0% year-on-year; in January and July 2018, the export volume of excavators was 10,681 units, a year-on-year increase of 118.7%. Since the beginning of the year, the export sales of domestic excavators have continued to grow at a high rate, indicating that overseas demand is improving. Chinese brand excavators are mainly located in the Asian-African Latin American market and are basically unaffected by trade wars. With the gradual maturity of domestically produced parts and components, domestic brand competitiveness and market share are expected to enter a period of continuous improvement.
The trend of capital investment policy has changed, and the construction machinery industry has continued to recover: domestic monetary and fiscal policies have tended to be loose since July, and the Politburo meeting has raised the shortcomings of infrastructure construction. The inflection point of infrastructure investment policy has already appeared, and the upstream engineering machinery sector will usher in an estimate. Value fixes the market. We expect the high boom of the excavator industry to continue for a long time. In 2018, the sales volume of excavators is expected to exceed 180,000 units, with a growth rate of over 30%.
Investment suggestion: After the recovery in 2017, the company's historical burdens in the industry gradually cleared up, the report was repaired, and the whole sector entered the performance release year, and continued to be optimistic about Liugong and other OEMs. Liugong is expected to grow at a rate of more than twice the speed of the industry: (1) The company's digging machine industry has achieved remarkable results, and its market share is expected to rise to 7.50%. The business structure is improving, and the excavator is expected to become the first main business. Resilience; (2) The company's global brand strategy is steadily advancing, and the incremental growth of the Belt and Road and overseas markets is expected to continue to benefit in the coming years. (3) In the first quarter, the company took the initiative to raise 155 million yuan of self-raised funds, and increased the capacity investment of the excavator, becoming the first main engine to enter capacity expansion in this cycle.