Machinery Industry Third Quarter Strategy Report

The "Several Opinions" are of landmark significance. Subsequent detailed policies will further improve the industry's development environment and bring long-term benefits to the manufacturing industry. According to the experience of western countries, the government’s industrial policies and support have played a crucial role in the process of revitalizing the manufacturing industry. The timely adjustment of industrial policies can often push the economy to another high-speed track. Although it is still a certain process to refine the policy implementation to the corporate fundamentals, the capital market will reflect the effectiveness of these policies in advance.

Judging from the experience of Japan, South Korea and Europe, the government’s focused support for the industry is conducive to concentrating factors such as technology, capital, and policies, and achieving leap-forward development of key industries. The revitalized 16 key industries will undoubtedly become the pillar industries of the Chinese economy in the future, and will also be the main areas for future policy benefit and mergers and acquisitions. Large groups are often the main force for the revitalization of key industries. In the future, the conglomeration and reorganization of state-owned enterprises in China will change the existing industrial structure and competition structure, and it will be conducive to independent innovation of enterprises and increase their strength. The value of strategic investment of listed companies with a large group background is highlighted.

From the recent industry data, this round of mechanical industry boom driven by domestic demand and exports will continue. We are not too worried about the macro-control in the second half of the year. After all, macroeconomic intentions are controlling overheating rather than suppressing economic development. Early concerns about the rapid rise in steel prices gradually weakened. Although the appreciation of the renminbi is a long-term issue that manufacturers must face, the recent slow climb has had little impact on companies. It is expected that in the second half of the year, the prosperity of the shipbuilding industry will continue, and the machine tool industry will be first taken care of by policies, and the construction machinery industry will face general increase.

From the perspective of investment strategy, the revitalization of the equipment manufacturing industry policy and the merger and reorganization of state-owned enterprises will undoubtedly be the main entry point for the next round of investment in the machinery industry. The company's valuation level and the strategic value of its investment will be the main aspects of future trade-offs. In addition, the machinery industry products are complex, each has its own characteristics, and there are numerous subdivided industries. Many of them have high market share and good future growth. They have internationally recognized companies. In the future, there may be surprises to find out more about subdivided industries.

In view of the above reasons, we maintain the “overweight” rating for machine tools, shipbuilding and port machinery; the construction machinery industry is rated “overweight”; the textile machinery is rated “careful overweight”.

Semi-Auto Metal Band Sawing Machine

Semi Automatic Band Saw,Metal Band Saw Machine,Semi Automatic Bandsaw Machine,Automatic Metal Cutting Band Saw Machine

Zhejiang Hujin Machine Tool Co., Ltd. , https://www.hujinmachine.com