Machinery Industry: Loader Steady Growth Gives Appeal Rating

The study concluded that sales in October increased by more than 10% year-on-year. According to statistics, in October 2011, 25 major loader manufacturers sold 16935 loaders, a year-on-year increase of 10.81% and a month-on-month decrease of 6.16%. From January to October, 2,9035 units were sold, a year-on-year increase of 14.48%. Based on the high base figure of the previous year, the sales volume of this month still showed a significant increase year-on-year, which also reflected the stability of industry demand. Due to the relatively large demand for loaders in the mining and terminal logistics sectors, and the demand in these regions is relatively stable, the demand for the loader industry is expected to be relatively stable even if infrastructure investment is decelerating.

Export growth is stable. In October, 1,717 export loaders were exported, an increase of 22.99% year-on-year, and exports accounted for 10.14% of the current month. From January to October, the cumulative volume of loaders exported was 20,546 sets, a year-on-year increase of 66.67%, accounting for 9.83% of the total; as of the end of October, cumulative export of loaders The volume has exceeded 15,483 units for the entire year of 2010. The significant increase in export demand also provides protection for the steady growth of the loader industry as a whole.

Industry concentration has increased slightly. From January to October 2011, the cumulative sales of the four major loader brands totaled 140,408 units, accounting for 67.17% of the total, which was an increase of 1.48 percentage points from 65.69% for the whole year of 2010. In October, 11 brands sold 11,810 units with a market share of 69.74%. The market share of the four major brands this month was also higher than that of 2010.

In 2011, the product structure continued to favor small and medium-sized products. The proportion of models below 5 tons continued to increase this month. Overall, 3 tons and 5 tons of products are still the main products of the loader; and the proportion of products below 3 tons and skid steers and backhoe loaders are high. In 2010, the average proportion of loader equipment driven by the increase in labor costs continues to trend toward miniaturization and multi-functional development.

The recent stock price performance of related listed companies is significantly weaker than the broader market. The stock prices of the five major listed companies related to the loader all fell in the past week and underperformed the A-shares index (1.07% increase). Among them, the smallest decline was Xiagong, which was 0.08%, and the largest decline was 2.50%; All the month underperformed the A-shares index (a 4.38% increase), and only Changlin shares gained 0.47% to achieve a positive return, while the rest fell. The largest decline was Xugong Machinery, which was 8.23%; all fell since the beginning of the year, and all were run. Losing the A-shares index (-5.89%), the smallest decline was XMGG's 13.79%, the largest decrease was 42.21% for XCMG.