Jinwu Financial News | CMB International said that in view of the Ministry of Housing and Construction's earlier release of more detailed policies to support equipment upgrading, the bank expects the construction machinery sector to continue to rise. Meanwhile, the Development and Reform Commission revealed at a press conference on April 17 that it has completed the preliminary screening of this year's special bond project, which has now been promoted to the Ministry of Finance and fed back to local authorities. The bank believes that all of these will help gradually improve domestic demand for construction machinery. The bank's current ranking in the construction machinery sector is Zhejiang Dingli (603338 CH, buy), Zoomlion Heavy Industries (01157/000157 CH, hold), Hengli Hydraulic (601100 CH, buy), and Sany Heavy Industries (600031 CH, hold).
The bank refers to the implementation plan to promote the upgrading of construction and municipal infrastructure equipment. The plan was released by the Ministry of Housing and Construction last week, covering various fields. For construction machinery, the plan proposes to replace equipment that is highly polluting, energy-intensive, or has a useful life of more than 10 years. These machines include excavators, cranes, loaders, concrete mixers, lifts, bulldozers, etc. Support measures include providing (1) preferential tax rates; and (2) interest rates through central financial resources.
Industry sales data for March: strong exports; weak domestic sales. The China Construction Machinery Association released construction machinery sales data for March, and domestic sales and exports of forklifts continued to grow. Exports of most machinery products recorded growth (with the exception of excavators and truck cranes). In contrast, domestic sales of most machinery fell sharply in March (with the exception of excavators and forklifts).