China Securities Journal reporter Cui Li reported on February 9 that industry statistics from the China Construction Machinery Association showed that in January 2021, 26 mainframe manufacturing enterprises included in the statistics sold 19,601 sets of various mining machinery products, a year-on-year increase of 97.2%.

Excavator sales high growth driven construction machinery plate is continued to be optimistic. On Feb. 9, the A-share construction machinery index closed up 5.05 percent. By the close, Zoomlion was up 8.72 percent, Xugong Machinery 6.98 percent, Liugong 5.31 percent and Sany Heavy Industry 4.16 percent.

Double sales

Among all kinds of mining machinery products sold, 16,026 units were sold in the domestic market, with a year-on-year increase of 106.6%; Export sales were 3,575 units, up 63.7% year-on-year.

In terms of product structure, large excavator sales of 2,292 sets, a year-on-year growth of 107.4%; Medium-sized excavators sold 4,463 units, up 181.8% year on year; Small excavators sold 9,271 units, up 82.9 percent year on year.

Photo source: China Construction Machinery Industry Association

The "good start" in 2021 continues the high growth trend of 2020. Statistics from the China Construction Machinery Association show that 327,600 excavators were sold in 2020, up 39 percent year on year.

The boom in excavator sales reflects the continuing repair of the Chinese economy. Excavator is known as the "thermometer" and "barometer" of national economic operation and fixed asset investment. Its market demand is greatly affected by national infrastructure construction. Downstream customers are mainly concentrated in infrastructure, real estate and other investment-intensive industries, which are closely related to the macroeconomic cycle. Investment played a positive role in promoting economic recovery in 2020. Since the beginning of this year, a new round of major projects have been launched across the country, and new infrastructure will continue to be a major driver of economic recovery.

Performance is generally positive

Listed companies in the construction machinery industry generally enjoyed good performance in 2020. Zoomlion recently released a forecast of its 2020 performance, showing that it is expected to achieve a net profit of 7 billion to 7.5 billion yuan in 2020, with a year-on-year growth of 60.1% to 71.6%.

Sanhe Intelligence is expected to achieve a net profit of 530 million to 630 million yuan in 2020, compared with a profit of 500 million yuan in the same period last year. Sanhe Intelligence said that the company's construction machinery segment revenue and profit achieved substantial growth, pushing up the company's total operating revenue to exceed 9.3 billion yuan, a year-on-year growth of 25%.

The agency predicts that the excavator sales will continue to rise in 2021, and the excavator industry will still have great development. At present, the national new infrastructure policy and new rural construction are still hot. With the infrastructure reconstruction in urban areas and the broad market expansion in rural areas, the excavator industry will still have a large market. Therefore, 2021 is still a year of great development for excavators.

Research report of Bank of China Securities pointed out that, driven by upgrading and machine replacement, excavator sales are expected to hit double-digit positive growth in 2021, overseas demand will be significantly improved after marginal improvement of overseas epidemic, and the market share of the industry leader will further increase.

Huachuang Securities pointed out that in recent years, Chinese construction machinery continues to maintain a high boom, including excavator sales continued to increase; It is expected that Chinese excavators will continue to grow in 2021, and the market share of domestic brands will further increase.