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Telephone:0519-88611708 E-mail:sainengjx@163.com
01
2018
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03
Discussing investment strategies in the machinery industry in mid-2013.
The PMI index of China's manufacturing industry has been hovering around the 50±1% level for more than a year, with fluctuations much smaller than in previous years; a PMI around 50 also indicates a slowdown in the expansion of the manufacturing sector. After nearly two years of decline, mechanical products are showing a mild improvement from a low base level, and some companies have returned to a growth trajectory after adjustments.
The PMI index of China's manufacturing industry has been hovering around the level of 50±1% for more than a year, with fluctuations much smaller than in previous years; a PMI around 50 also indicates a slowdown in the expansion rate of the manufacturing industry. After nearly two years of decline, mechanical products are showing a mild improvement from a low base level, and some companies have returned to a growth trajectory after adjustments.
The investment cycle is still in a downward phase.
The growth rate of fixed asset investment in urban areas of our country remains around 20%, but is slowly declining. From an industry composition perspective, the growth rate of real estate investment has increased, while the growth rates of investment in manufacturing and mining industries have clearly declined.
Considering that the growth rate of government public financial revenue has significantly slowed down, and current expenditures are already at historically high levels, it is very difficult to increase the growth rate of infrastructure investment.
In the first half of 2013, the land market in first-tier cities became active, but new construction data has fluctuated in recent months, showing that it is not yet obvious. Only when the growth rate of newly started construction area shows significant improvement (above double digits) can the engineering machinery industry potentially face investment opportunities.
Towards a growing future.
Oil and gas and marine engineering companies benefiting from national energy development strategies and actively exploring international markets;
Pump industry based on the pump market, extending towards water resource solution equipment;
Rail transit equipment industry providing economic solutions for new urbanization (modern trams);
Automation equipment industry solving industrial upgrading and labor shortage issues; energy-saving and power equipment industries needed for 'Beautiful' China.
Investment logic in the military-industrial sector.
First is restructuring expectations, such as companies like AVIC Electronics, Aerospace Electronics, China Satellite, AVIC Precision Machinery;
Second are fields that receive key support from industrial policies such as aircraft engines, Beidou navigation, general aviation;
Third is to find companies that can quickly benefit from technological improvements and increased demand for weapons and equipment leading to profit enhancement.
Risk warning: Macroeconomic changes lead to fluctuations in demand for mechanical products; rising raw material prices suppress profitability for machinery enterprises;
Delays in railway equipment bidding lead to insufficient production scheduling for related enterprises; uncertainties regarding the securitization process in national defense military sectors.
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Address: Xingchen Industrial Park, Hengshanqiao Town, Changzhou City, Jiangsu Province
Telephone:0519-88611708
Fax: 0519-88611508
E-mail:sainengjx@163.com
Website:www.sainengjx.com
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