In the recent continuous market rebound, the performance of the engineering machinery sector can be described as robust.According to the recent 12th five-year plan of the engineering machinery industry, the reasons for supporting engineering machinery are mainly in the following aspects.First, the industry as a whole will continue to grow steadily.In the 12th five-year plan period, the sales revenue of the construction machinery industry is expected to reach 900 billion yuan in 2015.Secondly, the development of core components will be promoted to new heights.The development lag of key base parts is the bottleneck that restricts the long-term competitiveness of China's engineering machinery.As the "twelfth five-year" period industry competition, the core parts of research work is expected to be promoted to a new height, and form the government leading, the led industry association, the enterprise leading joint breakthrough, to achieve a qualitative leap.Moreover, mergers and acquisitions are expected to accelerate.In the next five years, industry leading enterprises is expected to use their own advantages, realize product line through mergers and acquisitions and the expansion of the market layout, backward in the market competition mechanism and low level repeated construction, industry concentration will be significantly increased.Under the current share price, engineering machinery plate corresponds to 2011, and 2012 p/e ratio of 13.3 and 10.4 times respectively, valuations are reasonable and even on the low side, still maintain industry throughout the year, more than 15% of the overall growth of judgment, therefore, we suggest investors bargain-hunters the industry leading company liugong quality (000528).
The main business of the company is loaders, excavators and cranes.In the first quarter of this year, the sales of excavators and cranes increased rapidly, and the sales of excavators increased by 70%.The company's better business performance in the first quarter mainly benefited from the high growth of the industry.In the future, the company benefited from the construction of water conservancy investment, remained high excavator future sales growth, the company currently excavator ranked second in the listed company, the production of trinity, second only to the future with further release of excavator production company, the company's performance is expected to be improved.
Second, asean countries, such as Vietnam, are now pushing hard for roads, railways, ports, airports, industrial zones and housing projects, and there is a huge demand for engineering machinery.In recent years, Vietnam construction engineering construction contractor has already started to use many of the construction machinery and equipment imported from China, and imported from China power shovel, rolling machine, concrete mixer, tower bridge crane, etc. The number of appeared the trend of increased year by year.China's engineering machinery products have a good price performance advantage and geographical advantage, which also reduces the cost of transportation.Due to the convenient geographical position, in the company's internationalization strategy, the association of south-east Asian nations (asean) is considered to be a very important market, currently in Vietnam, Indonesia, Malaysia and other countries, the company's roller, loader sales accounted for more than 30% market share, the market share of more than 50% in Vietnam.In the future, with the increase of infrastructure investment in asean countries, overseas sales of machinery such as company loaders will maintain a high growth.
Secondary market, the stock market in the early stage of the adjustment of the trend adjustment, a big decline.Combined with a price-to-earnings ratio of just 10 times, the unit has a high margin of safety.The stock has risen, but is still at a stage low.It is expected that the stock market will still have a large space, which is worthy of the attention of investors.