China sold 79,000 excavators in March, up 59.96 percent year on year, and 126,900 in 2021 Q1, up 84.96 percent, according to the 2021. According to the statistics of the China Construction Machinery Industry Association, the sales volume in the domestic market in March was 4.44/2.14/0.72 million units by tonnage, up 47.38%/89.82%/37.67% year-on-year, in 2021Q1, the cumulative sales of small, medium and large excavations were 6.82/3.33/12,100 units, up 71.74%/131.88%/67.40% . Guosen machinery point of view: The first quarter industry sales continued to exceed expectations, high growth rate in digging, overseas market recovery. China's 2021 sold 79,000 excavators in March, up 59.96 percent from a year earlier. 2021Q1 cumulative sales of 126,900 units, an increase of 84.96% compared to 2019Q1, an increase of 69.75% compared to 2019Q1, the industry continued prosperity. In terms of market segments, domestic investment in infrastructure has picked up, driving the growth rate of China's excavation has increased substantially, and since July 20, it has consistently exceeded the growth rates of small excavation and large excavation. Looking ahead, the domestic market is likely to slow down on the basis of a high base of 20 years, said 2021, china continues to benefit from major construction projects; control of disease in overseas markets has improved, the U.S. Biden administration has announced an eight year $2 trillion infrastructure plan, and India has proposed a five year plan of $1.39 trillion in infrastructure by 2020, overseas investment in infrastructure will stimulate the construction machinery market to speed up the recovery, provide more room for the internationalization strategy of domestic brand leaders, and continue to see the domestic brand leaders as superior in terms of price performance, digital Transformation and international distribution drive global competitiveness. Domestic construction machinery industry continued high prosperity, the overseas market recovery, leading host plant and core components enterprises are expected to benefit fully, focus on: Hengli hydraulic, Xugong Machinery, zoomlion heavy branch. COMMENTS: China sold 79,000 excavators in 2021, up 59.96% year on year, march sales hit a record high of 79,000 units. According to the China Construction Machinery Industry Association, sales of 79,000 excavators in 2021 were up 59.96% year on year, exceeding CME's previous forecast (72,000 units, up 45.73% year on year) , with high base growth. Cumulative sales of 126,900 units in 2021 Q1 were up 84.96% year on year, up 69.75% compared with 2019 Q1. 2) recovery in overseas markets and a quick rebound in exports. By market, domestic sales rose 56.57 percent to 73,000 units in March, while export sales rose 116.51 percent to 0.61 million units. In 2020, the overseas market was affected by the epidemic. Since October, the overseas market has continued to recover. The cumulative export of 20Q4/21Q1 was 11/13,400 units, an increase of 52.86%/81.91% year-on-year. In terms of hours worked, Komatsu's excavator hours in North America, Europe, Japan and Indonesia increased 10.90% , 21.00% , 4.00% and 6.20% respectively in march from a year earlier, with major overseas regions showing signs of recovery. Looking ahead, under the background of overseas epidemic control improvement, the 21-year completion of digital transformation has driven the continuous improvement of international competitiveness on the basis of remarkable product performance-price ratio advantage of the domestic main engine factory. In terms of tonnage, the growth rate of Q1 medium-sized excavations outstripped that of small-sized excavations and large-sized excavations by a large margin, accounting for an increase in the domestic market in March 21 according to tonnage. The sales volume of small-sized excavations/medium-sized excavations/large-sized excavations was 4.44/2.14/0.72 million units respectively, a year-on-year increase of 47.38%/89.82%/37.67% . On a quarterly basis, 21Q1's cumulative sales were 6.82/3.33/12,100 units, up 71.74%/131.88%/67.40% , accounting for 10.64%/29.33%/60.03% respectively. Since the recovery in 2016, China's share of mining has basically been around 25% , 20q320q421q1 increased to 28% 28% 30% , and the growth rate since July 2020 has continued to exceed the small excavation and big excavation, mainly benefited from last year Q 3 Real Estate Infrastructure Investment pick-up, is expected to continue to push forward the new infrastructure, 2021 as a major type of infrastructure is expected to usher in faster growth. The rebound of domestic infrastructure investment supports the "two-fold and one-new" construction. The US and India have increased infrastructure investment to stimulate overseas market demand. Domestic real estate infrastructure investment has picked up, and 3.65 trillion local government special debts have given priority to supporting projects under construction, pushing forward the "two-fold and one-new" construction. The cumulative amount of real estate/infrastructure investment increased by 36.80%/36.60% in january-february 2020 compared with the same period in June/september 2020. According to the report on the work of the 2021 government, 3.65 trillion yuan of special bonds for local governments and 610 billion yuan of investment under the central government budget will be arranged this year to give priority to projects under construction, push ahead with the "two new ones and one new heavy industry" construction, and implement a number of major transport, energy and water conservancy projects. According to government websites at all levels, 31 provinces and cities across the country have launched 2021, with a total investment of 3.2 trillion yuan. Under the background of the 2021's new infrastructure construction, it is expected to be a big year for major construction projects and stabilize the basic plate of domestic demand for construction machinery and equipment. US and Indian infrastructure investment plans are expected to lead to a sustained recovery in the overseas construction machinery market. April 1 a report by China Central Television reported that the U.S. Biden Administration has unveiled an eight-year, $2 trillion infrastructure plan to rebuild aging infrastructure and boost the development of electric vehicles and clean energy. The passage of the $2 trillion infrastructure bill will help stimulate demand in the U.S. construction machinery market. India has proposed a five-year infrastructure plan in 2020 that will spend more than 100 trillion rupees ($1.39 trillion) on major infrastructure projects, including railways and roads, rural infrastructure and green energy. Under the background of better control of overseas epidemics and landing of vaccines, overseas investment in infrastructure will support the recovery and sustained growth of market demand for construction machinery and provide more space for the internationalization strategy of domestic brand leaders. Digging machine hours maintain high, lower demand and real 21Q1 Komatsu digging machine hours maintain high, close to the level of 2019. In 2021, the number of hours worked by Komatsu excavators increased by 85.62% 47.06% 7.78% , which is close to the start level in 2019. Komatsu's sales in the domestic market to excavation-based, high-position Komatsu excavator hours of operation side of the real demand for infrastructure downstream. According to statistics from the industry website, the average operating hours of excavators in all provinces and cities in the 2021 from January to March were 11345137 hours, up 113.21% 50.00% 28.04% compared with the same period last year. Investment suggestion: It is suggested that we should focus on the domestic leading position of the host machine factory leading with global competitiveness, and the core components leading of the benefiting industries with high prosperity. In the first quarter, the industry sales volume continued to exceed expectations, the industry boom continued, the control of the epidemic situation in overseas markets improved, the infrastructure investment stimulated the overseas market demand to accelerate the recovery, and the domestic brand leading in the excellent price-performance advantages, digital transformation and international distribution drive global competitiveness. Domestic construction machinery industry continued high boom, overseas market welcomed a rebound, leading host plant and core components enterprises are expected to benefit fully, focus on: Hengli hydraulic, Xugong Machinery, zoomlion heavy branch.
