Construction Machinery Industry Accelerates Sales in October

Excavator sales exceeded expectations in October. In October, a total of 7,447 excavator manufacturers sold 7,447 units, an increase of 25.8%, an increase of 8.92% from September; of which, the domestic market sales of 6,944 units, an increase of 26.74% year on year growth of 8.75%, sales exceeded our expectations.

From January to October, 95,800 excavators were sold in the industry, a decrease of 5.9% year-on-year and a decrease of 7.9% in the previous month. The industry's overall performance was in line with our expectation of a growth rate of ±5% in the excavator industry this year at the beginning of the year. Growth rate -5%-0%.

Due to the low base effect, sales of Japanese and Korean brands have accelerated. From the sales growth rate of various manufacturers in a single month, the growth rate of foreign brands is significantly higher than domestic brands. Sales volume of foreign brands Komatsu, Kobelco, Caterpillar, Hitachi, Doosan, Volvo, etc. increased by 74.8%, 57.2%, 45.1%, 28.1%, 26%, and 25.3%, respectively, significantly exceeding the industry average; There were 31% (66.3%), Lingong (57.2%) and Liugong (57.1%) with higher growth rates. Sales growth of Korea, Japan, Europe and the United States was 20.5%, 74.1%, and 34.4%, while domestic growth was only 5.2%. This was mainly due to the sharp decline in demand in the same period of last year. Foreign manufacturers paid more attention to risk management and gave up sales and occupancy. Lower.

The share of Japanese, European and American companies increased significantly, and the share of domestic excavators decreased. With the growth in sales volume, the market share of Korean, Japanese, and European and American brands in October was 12.8%, 28.9%, and 15.1%, respectively, up by -1%, 1.8 percentage points, -0.7, respectively, from the previous month. Percentage points, while the share of domestic brands was 43.2%, stable compared to the previous quarter. In the January-October period, the Japanese, European, and European-American sales increased by 1.2 and 1.7 percentage points respectively from the previous year, and the share of domestic brands dropped by 3 percentage points.

The growth rate of large digging and sales was significantly accelerated, and the growth rate of small digging sales was stable. In October, the number of small excavations (below 20T), excavation (20-30T), and large excavations (above 30T) increased by 29.8%, 5.8%, and 83.2%, respectively; the occupancy rates were 53.5%, 32.7%, and 13.8%, respectively. Increased by 1.4%, -4%, and 2.6%. Small digging is the main theme of the industry this year. The growth rate in October was slightly higher than the average growth rate of the industry. The acceleration in the growth rate of large digging sales was partially improved by the start of mining projects in some areas, and more importantly due to the lower base last year. .

Maintain "Sync Market-A" rating. Although industry sales exceeded expectations, terminal demand has not been so optimistic. From the dealer level, it is known that the current improvement in terminal demand is not obvious, and the utilization rate of existing excavators is about 50%-60%, while the overdue rate of customers remains at a relatively high level. The industry has bottomed out but the recovery is relatively slow. We maintain the “Synchronous Market-A” rating and the timing of short-term investment in traditional earthmoving machinery still needs to wait. The forklift industry benefits from the rapid development of the logistics and warehousing industry, and the steady increase in the demand for machinery-driven alternatives to the human-driven industry. It is proposed to deploy Anhui Heli as well as Kangli Elevator, which has relatively stable demand.