Grasp the structural opportunities of construction machinery industry
Since March, represented by excavatorsConstruction MachinerySales continued to exceed market expectations. We believe that the full-year sales of excavators will also exceed expectations. Domestic brand market share is expected to continue to improve, the results of the change of business ideas will gradually appear.
From January to May 2018, the cumulative sales volume of excavators reached 105900 units, up 60.18 percent year on year. We expect sales in June to exceed expectations, and full-year sales are also expected to be higher than the market expectation of 20% at the beginning of the year. We believe that the net profit of construction machinery manufacturers is expected to increase significantly in 2018 for three reasons. First, the industry's sales volume has grown steadily, and the overall product price has been stable; second, the cost pressure has been reduced, and the manufacturer's gross profit margin has stabilized; third, the cost is properly controlled, and the manufacturer's net interest rate is expected to increase; fourth, asset impairment is expected to decrease significantly. In 2017, manufacturers actively dealt with historical bad debts and went into battle lightly in 2018. At the same time, domestic manufacturers are interested in creditSalesStricter control is conducive to the sustained and healthy development of the industry.
Combined with the growth of the construction machinery market and industry research in the first five months of this year, we expect the interim performance of the construction machinery sector to continue to shine, laying the foundation for high annual profit growth. Judging from the historical valuation of domestic and foreign construction machinery leaders, we believe that there are still structural investment opportunities in the industry this year.