10-15 % growth in the next two years in the construction machinery industry orders

CLSA construction machinery industry senior investment analyst Likun Long released a report that , under the policy to promote China's urbanization is expected next year domestic infrastructure and real estate investment will be very positive , with industry consolidation will continue , and the elimination of small businesses , so mechanical increasing demand , and gradually picked up from the bottom.

He noted that the Chinese government locked assets of over 2 billion yuan on the construction of affordable housing projects, while the bank saw machinery demand in the second quarter of this year has been bottoming out , early cycle products have been on the front side of the territory , while the late -cycle decline in demand for our products is narrowing , is expected to be back on track in 2014. Meanwhile , cement and other commodity prices also rose recently , reflecting the government has carried out preparatory work . Therefore , in the present order basis points lower case, he is expected machinery orders grow 10-15% annually in 2014-15 .

In addition, Lee believes domestic contractors tend to purchase more high-quality products, Moreover , environmental equipment to benefit from the concept of urbanization , the government will use up to emission standards for machinery, which will make the machinery to get price and gross margin expansion .

Report refers to , product technology upgrades and industry consolidation will produce six to maintain the market share of the industry giants , including Zoomlion , Sany International, the parent company Weifang Shandong Heavy Industry Group , a drag Parent CNMIC Xugong , and Liugong Group .

Likun Long considered the six giant in no hurry to enter the U.S. market , due to the quality of American technology in the field and the best , I believe that the six giant will begin from Southeast Asian countries , continued to extend to the Asia-Pacific region , Europe and the United States.

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