Domestic sales in April were 10,782 units, up 13.34% year on year. Domestic sales growth rate expanded, exceeding CME's previous expectations
According to statistics from the China Construction Machinery Industry Association, in April 2024, the country sold 1,8822 excavators of various types, up 0.27% year on year, slightly higher than CME's previous expectations.
By market, domestic sales in April were 10,782 units, up 13.34% year on year, and the domestic sales growth rate expanded, greatly exceeding CME's previous expectations;
Export sales volume was 8040 units, down 13.17% year on year, accounting for 42.7% of export sales. From January to April 2024, a total of 69,000 excavators were sold nationwide, a year-on-year decrease of 9.8%;
It sold 37,000 units in China, down 2.9% year on year; exported 32,000 units, down 16.7% year on year, accounting for 45.9% of total export sales.
Orient Securities believes that the introduction of a series of real estate support policies is expected to boost domestic market demand and drive the recovery of the upstream construction machinery industry.
Policies related to equipment upgrading are expected to accelerate the transformation and upgrading of construction machinery, reduce the scale of existing equipment, stimulate sales of new machines, and drive an increase in domestic demand.
Orient Securities judged that the positive growth in domestic sales of excavators for two consecutive months is expected to boost confidence in the development of the industry to a certain extent. The growth rate of export sales fluctuated downward or was affected by a high base and demand differentiation in overseas markets during the same period.
According to Dongwu Securities Research, the construction machinery and equipment renewal cycle may be approaching, and a series of large-scale equipment renewal policies are expected to boost the market recovery. The bottom of the construction machinery industry is marginally rising, and the investment value is gradually showing.
Construction machinery-related enterprises:
Zhonglian Heavy Industries (01157), China Longgong (03339), First Tractor Co., Ltd. (00038), Sinotruk (03808), Sany International (00631), Zheng Meiji (00564), Weichai Power (02338), Sinotruk (03808), etc.