Construction of affordable housing drives increase of mixing plant equipment

In the first half of the year, the construction machinery industry grew beyond expectations, causing concerns about a turning point in the industry and the difficulty of sustaining the prosperity in the second half of the year. It is reported that the factors driving the growth of the construction machinery industry include infrastructure, exports, and real estate development. Based on the current situation, real estate and infrastructure are the two main ones The development trend of the domain is not optimistic. Industry insiders said, "Due to strong sales in the first half of the year, construction machinery companies will still see a significant year-on-year increase in performance for the whole year. However, for the second half of the year alone, the decline in performance growth rate will be more pronounced

In the first half of the year, the prosperity of the construction machinery industry exceeded most people's expectations. But it is precisely this unexpected growth that has raised concerns about a turning point in the machinery industry and the difficulty of sustaining the prosperity in the second half of the year.

The main driving force behind the performance growth of these listed companies is the increase in both sales revenue and gross profit margin. The prosperity of the construction machinery industry in the first half of the year exceeded the expectations of most industry researchers, and there was a significant gap between their outlook report at the beginning of the year and the current situation of the industry. Industry researcher Guo Yaling said that many researchers later raised their performance forecasts for key companies in the construction machinery industry.

However, due to the unexpected growth in the first half of the year, the market is concerned about the growth rate of the construction machinery industry in the second half of the year.

It is reported that the factors driving the growth of the construction machinery industry include infrastructure, exports, and real estate development. Based on the current situation, real estate and infrastructure are the two main ones The development trend of the domain is not optimistic.

Strict real estate regulation will reduce the willingness of real estate developers to start construction. Although the construction of affordable housing can still stimulate the demand for some mechanical products, it cannot be compared with the construction of commercial housing, which will directly suppress the demand for construction machinery products, "said Shi Haihuang, a researcher at Zhejiang Securities.

More importantly, the new real estate policy will reduce local government land transfer fees, leading to a shortage of funds for planned infrastructure projects. Li Qin from China Investment Securities stated that among the 4 trillion yuan investment projects, local investment accounted for 2.82 trillion yuan, accounting for 70%. The sluggish land sales caused by real estate regulation may lead to a significant decline in infrastructure investment compared to last year, further suppressing the demand for construction machinery products.

However, due to strong sales in the first half of the year, construction machinery companies are expected to see a significant year-on-year increase in performance for the entire year. However, for the second half of the year alone, the decline in performance growth rate will be more pronounced, "said industry insiders.