Excavator July and August some companies sell out of stock! Excavator in February and March this year, there has been a sharp rebound. From the excavator varieties, small digging and digging hot sales, digging plain, we were to determine the small digging and real estate to the inventory, the park construction demand growth related to a number of dug mining demand related to recovery, and also with the country Two clear inventory, country three excavators listed promotion also has a certain relationship. Second quarter sales are still down, the recovery did not last. The third quarter of the small peak season ahead of time, in July and August excavator continuous positive growth in August excavator industry sales growth of 45%, Sany Heavy Industry excavator sales growth of 40% market share first, Xugong and Sany excavator Inventory tension, constant vertical hydraulic excavator cylinder also picked up 30%, shield machine cylinder shipments doubled. Compared to February-March excavator sales growth, the July and August data more fundamental support: the real estate market continued hot, PPP boost large-scale infrastructure projects, we believe that although August high growth and low base last year, Manufacturers and distributors operating pressure is still great, but the confidence in the construction machinery industry in the rebound, the industry has bottomed out earnings.

Crane August industry sales are also positive growth. Research in understanding, in July Xugong truck crane growth of about 58%, road machinery growth of 30%, 57% increase in rotary drilling rig, loader fell 13%. Expected in August Xugong truck crane growth of 50%, 9,10 month order growth can be expected. Zoomlion began in August also appeared positive growth in truck cranes.

2015 demand for concrete machinery has been reduced to freezing point. Although the concrete machinery started to pick up some hours, but sales are still weak. In particular, pump truck sales in 2015, 2000 has dropped to 10% in 2011, mainly due to real estate investment fell for two consecutive years, high-speed rail into the completion of the peak, the current utilization of concrete stock equipment is not high, the dealer's financial pressure is still Great. The first half of the sales of concrete machinery is still a substantial decline.

Other small varieties of construction machinery products also rebounded in August. Rotary drilling rigs benefited from the most significant infrastructure growth, with August roller sales up 22%. Bulldozer sales tripled from last year's low base, with loaders still down 13%, driven by higher demand for commodities and excavator replacements.

Industry overkill, bottoming out

According to media reports, the third batch of PPP has been issued, the project more than 500 trillion investment. In early June this year, the Ministry of Finance jointly launched the third batch of 20 ministries and commissions PPP demonstration project work, the purpose is to introduce a number of replicable and promote the demonstration case, to boost more PPP project floor. In 2014 the Ministry of Finance launched the first batch of 30 PPP demonstration projects with a total investment of 180 billion yuan. The second batch of PPP demonstration projects in 2015 the number and total investment were 206 and 658.9 billion yuan, 2016 was significantly ahead of two years.

Construction machinery started this year, sustained growth. Komatsu monitoring excavator monthly working hours from the beginning of February this year, ending the decline since 2014, August 10% growth in January-August start-hour average growth rate of 6%. Zoomlion truck work hours on the slow recovery, truck crane monthly working hours is close to historical highs, 1-8 months on average 18% growth in working hours, tower crane working hours an average increase of 15%. Xugong January to August this year, excavators, truck cranes, rotary drilling rigs, rollers working hours per hour growth rate of 5%, 50%, 37%, 17%. Trinity excavators from January to August the average hourly growth rate of about 5%. Storage equipment utilization, new demand will rebound, excavators, crane industry sales began to grow in July and August.

Construction machinery industry is the worst of the past, next year is expected to resume growth. 2011-2012 credit sales overdraft demand, sales have dropped to freezing point last year, construction machinery investor confidence also collapsed, the withdrawal of agents and manufacturers in the increase. According to industry experts estimate Komatsu China estimated earnings flat, Carter slightly profitable, the industry channel problems will take time to solve the financial and cash back pressure is still great. However, we see the current construction machinery industry risks have dropped significantly, and now customers are rational, credit better, the manufacturers are very rational, very strict examination of the qualifications of customers, strictly control the down payment and inventory, this year, customers also Of the overdue rate is also declining to 31 excavators, for example, overdue rate of only 60% in 2013, significantly improved. At present, Sany excavator excavator operating rate has risen to 2/3, the average working hours are also growing. Excavator stock market is currently 120-140 million units, the normal update every year should have 80,000 units (general medium-sized excavator work 8000 hours updated, but in fact spent 12-1.5 million hours), while sales fell last year 5.6 million units is not normal, so we judge the rebound in the construction machinery industry soon, the current break-even point in the vicinity, once the sales rebounded, earnings will be substantially improved.