The momentum of construction machinery is irresistible
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Construction machinery grew rapidly. Due to the different influences of macroeconomic policies and the pull of downstream industries, the growth rate of each sub-industry of the machinery industry shows obvious differences. The industry with the best growth momentum is still the construction machinery industry, with the growth rate reaching 51.9% in January-February 2010. Basic parts, machine tools, agricultural machinery and internal combustion engine are also sub-industries with rapid growth, with growth rates of 39.62%, 38.95%, 34.29% and 30.63% respectively in January and February. In addition, food and beverage packaging, instrumentation, petrochemical general, office equipment industry growth rates are also more than 20 percent.
The leading product crane and the real estate correlation is not high, the performance growth is less uncertain, the investment rating is "recommended". Xiagong Shares: Excavators will become the main growth point of the company in the next two years. It is expected that the performance growth rate in 2010 will be among the top in the industry. The investment rating is "recommended". Taiyuan Heavy Industry co., LTD. : Large excavators and new energy equipment will be the main growth points of the company in the next two years. The company has strong sustained growth ability and advantages in valuation. Its investment rating is recommended cautiously.
Industry investment rating for "cautious recommendation". We are bullish on investment opportunities in the machinery sector in the first half of 2020 and give a "cautious recommendation" rating. Focus on construction machinery, heavy machinery and other sub-industries. Construction machinery is optimistic about the leading company XCMG Machinery, and the growth prospects of the better shares of Xiamen. Heavy machinery industry, optimistic valuation advantage obvious Taiyuan Heavy Industry. In addition, we are optimistic about aerospace electronics in the military industry.
The machinery sector has a more optimistic growth outlook. From January to February in 2020, the sales output value of the whole industry reached 1,704.3 billion yuan, with a year-on-year growth of 46.59%; In February, it reached 793.9 billion yuan, down 12.78% from the previous month. The trend of accelerated growth of industrial production and sales is very obvious. Industry exports rose 19.02% year-on-year in January-February, continuing the momentum of recovery since the second half of 2019, and the prospects for export growth are becoming clearer. We expect the machinery industry to maintain 30-35% revenue growth in the first half of 2020, and the earnings growth outlook is also optimistic. We expect profit growth to be roughly the same as revenue growth.
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The leading product crane and the real estate correlation is not high, the performance growth is less uncertain, the investment rating is "recommended". Xiagong Shares: Excavators will become the main growth point of the company in the next two years. It is expected that the performance growth rate in 2010 will be among the top in the industry. The investment rating is "recommended". Taiyuan Heavy Industry co., LTD. : Large excavators and new energy equipment will be the main growth points of the company in the next two years. The company has strong sustained growth ability and advantages in valuation. Its investment rating is recommended cautiously.
Industry investment rating for "cautious recommendation". We are bullish on investment opportunities in the machinery sector in the first half of 2020 and give a "cautious recommendation" rating. Focus on construction machinery, heavy machinery and other sub-industries. Construction machinery is optimistic about the leading company XCMG Machinery, and the growth prospects of the better shares of Xiamen. Heavy machinery industry, optimistic valuation advantage obvious Taiyuan Heavy Industry. In addition, we are optimistic about aerospace electronics in the military industry.
The machinery sector has a more optimistic growth outlook. From January to February in 2020, the sales output value of the whole industry reached 1,704.3 billion yuan, with a year-on-year growth of 46.59%; In February, it reached 793.9 billion yuan, down 12.78% from the previous month. The trend of accelerated growth of industrial production and sales is very obvious. Industry exports rose 19.02% year-on-year in January-February, continuing the momentum of recovery since the second half of 2019, and the prospects for export growth are becoming clearer. We expect the machinery industry to maintain 30-35% revenue growth in the first half of 2020, and the earnings growth outlook is also optimistic. We expect profit growth to be roughly the same as revenue growth.