The boom of the hottest industry is not high, and

The industry boom is not high, and the construction machinery stocks are short-term underperforming the market

the industry boom is not high, and the construction machinery stocks are short-term underperforming the market

China Construction machinery information

Guide: Recently, the Shanghai and Shenzhen stock markets have continued to fluctuate upward, with cyclical industries represented by non-ferrous metals, electronics, chemicals, and coal leading the market. In contrast, the mechanical equipment sector, which also has a strong cyclical attribute, has significantly underperformed the market. Analysts pointed out that the boom of the construction machinery industry is not high

recently, the Shanghai and Shenzhen stock markets have continued to fluctuate and rise, and the cyclical industries represented by non-ferrous metals, electronics, chemicals and coal have led the market to rise. In contrast, the mechanical equipment sector, which also has a strong cyclical attribute, has significantly underperformed the market. Analysts pointed out that the low prosperity of the construction machinery industry is the main reason for the relative stagnation of the sector

mechanical equipment underperformed the market

since February, the market has shown a trend of two retreats and one retreat, gradually cutting into the technical pressure area above 2300 points. During this period of market operation, nonferrous metals, coal, electronics, information equipment and other industries served as the main force leading the market

generally speaking, during the first ten days of February, the strong cycle varieties were still active, and the weak cycle varieties were relatively stagnant. However, with the rise of the market, some cyclical varieties have also shown fatigue, and the construction machinery sector is one of them. According to wind data, the construction machinery sector has fallen by 0.90% since February, underperforming the broader market by 2.39 percentage points. Major construction machinery stocks such as Sany Heavy Industry, Zoomlion Heavy Industry and Liugong all fell in February, with declines of 3.10%, 0.22% and 1.36% respectively

analysts pointed out that there are two main reasons for the short-term underperformance of the construction machinery sector: it is particularly necessary to choose No. 32 hydraulic oil when it is cold, which means the effective stroke of the electronic tensile testing machine and the sample fixture. On the one hand, the cumulative increase of the sector in January was large, which led to profit taking of funds; Second, from the perspective of fundamentals, the boom of the industry is not high, which restricts the rising space of relevant stock prices

from the perspective of valuation, the overall P/E ratio of this sector is not high, 10.78 times, which is one of the lowest valuation sectors in the two cities. Vertically, the current P/E ratio of this sector is the lowest in recent 10 years, which is equivalent to that when the Shanghai Composite Index fell to the bottom in the fourth quarter of 2008. Market participants believe that the downward valuation of the overall market and the market's expectation of the medium - and long-term slowdown in the construction machinery industry are the main reasons for the downward valuation of the sector

the prosperity of the industry is not high

for the prosperity of the construction machinery industry, most professional analysis institutions are cautious, and there are two main reasons for the weak prospects of the industry

method: change the software parameter settings of photoelectric switches. First of all, since 2011, the growth rate of China's fixed asset investment has slowed down significantly, and there are few large-scale new projects, resulting in the sales situation of construction machinery is not optimistic, but insiders expect this situation to continue. Data show that the annual infrastructure investment in 2011 was 5.11 trillion yuan, an increase of 5.9% over the previous year, and the growth rate fell by 14.3 percentage points. From the situation in the first two months of this year, we can see that there is a shortage of construction resources, and we promised to deal with the problems raised by customers within 24 (4) 8 hours in the province, but there was no improvement. A survey report released by industrial securities recently shows that the average daily delivery volume of an excavator dealer in Chongqing after the Spring Festival is less than 20% of that in the same period last year. In addition, a concrete machinery dealer expects the monthly construction project demand to drop by about 60% compared with that in the same period last year

secondly, the current inventory situation of construction machinery is not optimistic. Manufacturers and dealers have not effectively destocked in the industry adjustment since last year, resulting in the current inventory level is still high. According to Guotai Junan Securities, at present, the agents of domestic brands are under great pressure, with less inventory reaching the sales volume of 2 to 3 months in previous years, and more reaching the sales volume of 4 to 5 months

at present, construction machinery is faced with phased supply exceeding demand, which leads to fierce competition for market share among different brands. At the same time, the high inventory also forces some companies to reduce production. Some analysts believe that de stocking is still the biggest challenge facing the industry

compared with the sluggish domestic market, the export situation is relatively optimistic. The export volume of XCMG in 2011 was close to US $90million, with a year-on-year increase of more than 80%. Recently, Liugong and sany have carried out international mergers and acquisitions, acquiring HSW in Poland and Putzmeister in Germany respectively, which also shows the strong will of Chinese construction machinery giants to open up the international market. Analysts pointed out that in the context of the slowdown in the growth rate of domestic infrastructure construction and fixed asset investment, exports may become a new profit growth point for domestic construction machinery enterprises