As a leading enterprise in the galvanized & pre-painted industry in china. Shandong Xinghan Materail Corporation with an annual output of 1 million tons of picking coils. 1 million tons of cold roll. 800,000 tons of hot-dipped galvanized and galvalume steel sheets. 450,000 tons of thicker galvanized steeel sheets.300,000 tons of pre-painted steel sheets. occupies a stable leading position in the industry.
Steel Slit Coil,Galvanised Slit Coil,Galvanized Slit Coil,Stainless Steel Slit Coil SHANDONG XINGHAN MATERIAL CORPORATION , https://www.xinghansteel.com
In recent years, the machinery industry has developed rapidly. The average annual sales revenue of the entire industry has increased by nearly 30%, and the average annual net profit has increased by more than 40%. In 2006, the income growth rate of the machinery industry still reached 29.38%, and the profit growth rate was 40.07%. The prosperity of the machinery industry remained high. Looking into the future, the outlook for the domestic equipment industry is still promising. The next 5 to 10 years will be the golden period for the development of China's equipment manufacturing industry. The Chinese machinery industry will equip China with the emergence of a number of equipment manufacturers with international competitiveness. The industry believes that the driving force for high growth in the machinery industry in the next few years will still be attributed to the following aspects: First, industrial transfer; Second, strong domestic demand; Third, import substitution and export acceleration; Fourth, product and technology upgrades; Institutional innovation; Sixth, policy support.
It is expected that the growth rate of the machinery industry will remain high in the second half of the year. Although the growth rate due to investment, export deceleration, and base number may slow down slightly, the annual growth rate of the industry will remain at around 30%, with higher profit growth. The pressure of rising prices is still affordable or digestible. At the same time, shipbuilding, construction machinery, machine tools, metallurgical equipment and other sub-sectors still maintain a relatively high growth rate. In addition, technological advancements can increase the competitiveness of the machinery industry's products and the company's profitability. The future technological progress will become a key factor for the industry and enterprises to enhance their competitiveness.
The year 2007 is the second year of the “Eleventh Five-Year Planâ€. The industry as a whole will undertake the high economic situation in 2006, and the related sub-sectors of the machinery and equipment industry such as shipbuilding, construction machinery, machine tools, metallurgical mining equipment, railway transportation equipment and other industries in 2007 The better performance in the first half of the year has also basically confirmed the judgment of relevant persons in the industry.
Then, in the second half of 2007, what will happen to the development trend of China's steel, petrochemical, coal, electricity, non-ferrous metals, construction and other industries? Starting from today, this edition will successively introduce a series of reports, "Interpretation of the Middle-class Economy in 2007", and discuss and analyze the development of China's industrial economy with readers.
In the first half of the year, the industry growth accelerated
In the first half of 2007, China’s macro economy continued to maintain rapid growth. In the first quarter, China’s GDP grew by 11.1 percent year-on-year, an acceleration of 0.7 percentage points year-on-year; fixed-asset investment increased by 23.7%, a year-on-year decrease of 4 percentage points; and industrial companies’ profits increased by 43.8%. The year-on-year increase of 22 percentage points; industrial added value increased by 18.3% year-on-year, an acceleration of 1.6 percentage points year-on-year. Under the background of rapid macroeconomic growth, as the basic equipment industry in the manufacturing industry, the machinery industry has also continued its high degree of prosperity in the past few years.
In the first quarter of this year, the total industrial output value of China's machinery industry increased by 31.94% year-on-year, an increase of 2.7 percentage points year-on-year; sales revenue increased by 31.15% year-on-year, an increase of 1.89 percentage points year-on-year; export delivery value was 227.313 billion yuan, an increase of 34.7%, an increase of 11.61 Percentage points; profit growth is also above 40%.
Among the dozens of sub-sectors in the machinery industry, all production in the first quarter saw rapid growth with double-digits, of which construction machinery, general petrochemicals, machine tools, electrical appliances, and basic parts all increased by more than 30% and exceeded industry averages, showing strong The upward trend. Compared with the same period in 2006, the rapid growth in the first quarter of 2007 was the petrochemical general-purpose and basic parts industries, which were 6.77 and 6.71 percentage points higher than last year respectively. In addition, the agricultural machinery industry, which experienced a large decline in growth rate, fell by 18.01 percentage points, indicating that the growth of the agricultural machinery industry has significantly slowed this year.
The slight decline in growth rate in the second half is still at a high level
Due to rapid macroeconomic growth in the first half of the year, the energy saving and consumption reduction indicators did not reach expectations. At the same time, under the background of excess liquidity and sharp rise in asset prices, the growth rate of the machinery industry is expected to fall slightly in the second half but still maintain a high of around 30%. The main reasons are as follows:
First, fixed asset investment continued to face downward pressure in the second half of the year.
Second, exports are also facing downward pressure. The main reason is that there is still pressure for RMB appreciation, interest rate hikes, and US interest rate hikes.
Third, based on the base number, the growth rate of the machinery industry in 2006 was low and high. Since the base number was higher in the second half of the year, it would pose some pressure on the second half of 2007.
The fourth is seasonal factors. In general, from July to September, the industry is relatively off-season, and the fall in growth rate is a normal phenomenon.
Therefore, industry insiders expect the growth rate of the machinery industry this year is expected to fall to around 30%, and the annual growth rate may still be higher than in 2006.
Raw material price pressure is still affordable
In the first half of 2007, the price increase of upstream products such as steel, non-ferrous metals, water, and electricity began unfolding. In particular, the rise in steel prices weighed on the heart of machinery manufacturers. However, the author believes that the pressure of rising raw material prices remains high. Within the acceptable range, the main reasons are the following two aspects:
On the one hand, the increase in steel prices is still relatively moderate, as in the first quarter of 2007, the increase in steel prices was basically controlled within 7%, and it is expected that the price increase will be less likely.
On the other hand, in general, the amount of steel directly used in mechanical machine products is relatively small, and accordingly, it is not sensitive to changes in steel prices. At the same time, measures such as the appreciation of the renminbi, technological progress, improvement in production efficiency, and product price increase can basically compensate for the upward pressure on steel prices. Insiders pointed out that some sub-sectors with relatively large quantities of steel and relatively fierce competition, such as container manufacturing industry, will suffer some pressure.
Technological progress enhances the competitiveness of the industry
Modern science and technology have become decisive factors influencing economic growth. The contribution of scientific and technological progress to economic growth has clearly surpassed the role of capital and labor. Taking the connotative growth mode based on scientific and technological progress, striving to increase the content of scientific and technological progress in economic growth, and promoting the transformation of the entire economy from extensive to intensive management, it is the only choice for China's economic development.
Compared with foreign products, although China’s mechanical products have certain advantages in terms of cost performance, due to the insufficiency of innovation capability in the machinery and equipment industry, the relationship between introduction and digestion, absorption, and innovation has been poorly handled, and many technologies remain in imitation. In the low-level stage, there are fewer original technologies and products, making major technical equipment dependent on imports. This difference in technological level has led to the apparent lack of competitiveness of our machinery products in the international and domestic markets in the past many years.
However, this situation is rapidly changing with the rapid growth of China's economy and the increase in R&D investment. Although there are still gaps in the performance, process, stability, and reliability of our company's products and the world's high level, in recent years, the country’s annual R&D investment of nearly 200 billion yuan, especially the increase in applied R&D investment, has made China’s machinery and equipment The level of technology in the manufacturing industry is rapidly increasing, and the competitiveness of the industry has also been significantly improved. There are a number of competitive products and competitive companies in the global market, such as port lifting equipment manufacturing, shipbuilding and construction machinery. For example, it has developed the world's first double 40-foot quayside Zhenhua Port Machine, Hudong Zhonghua Shipyard, which has the world's most difficult LNG ship technology, and Sany Heavy Industry, which developed the world’s first 66-meter pump truck, and developed the largest in the world. Taiyuan Heavy Industry and other complete sets of open-pit mining equipment, these are examples of industry independent innovation and technological progress.
Profitability continues to improve
The most direct result of technological progress is the continuous emergence of a large number of major equipment and new products. In 2006, a large number of new products emerged in the machinery industry: more than 40,000 cubic meters per hour and above of air separation equipment have been produced and successfully used and exported; 7,000 meters and 9,000 meters of oil drilling rigs have been exported; The joint production of large-scale cold and hot continuous rolling mills has been promoted to other steel companies, ending the history of the inability of large-scale continuous rolling mills in China to produce their own products. The successful development of the 27-meter power shovel has provided a powerful tool for the construction of large-scale open-pit mines.
Compared with traditional products, on the one hand, the new products are sold at higher prices, and their added value is also high, causing a huge change in the profitability of manufacturers. Such as upgrading from general machine tools to CNC machine tools, upgrading from bulk carriers to large container ships, VLCC, LNG, etc.
On the other hand, compared with traditional machinery and equipment products, new products have higher production efficiency, such as large-tonnage crawler cranes, long boom pump trucks, and rotary drilling rigs. It not only improves the profitability of downstream manufacturers or purchasers, but also accelerates the replacement cycle of the original equipment.
The effect of this technological progress on profitability has been clearly demonstrated in the entire industry and at the enterprise level. According to statistics from the Federation of Machinery Industry, the output value of new products of China's machinery industry in 2006 was 1.042736 trillion yuan, up 35.85% year-on-year, 27% higher than the 8.85% growth rate in 2005. At the same time, the output value of new products in the machinery industry accounted for 19.06% of the total industrial output value in 2006, an increase of 2.34 percentage points year-on-year.
In the first quarter of 2007, this trend of technological advancement has made the industry more profitable. In the first quarter, the entire industry completed new product output value of 285.064 billion yuan, an increase of 32.52% over the same period of last year, which was higher than the growth rate of the industry-wide industrial output value. In particular, the growth rate of the output value of new products in the eastern region was noticeably accelerated. In addition, like Shenyang Machine Tool Company, the main products in the past were ordinary machine tools with low profitability. The company was on the verge of losses or bankruptcy. Driven by technological progress, the current leading products were upgraded from ordinary machine tools to CNC machine tools, and profitability has undergone enormous changes. Not only do companies survive but they also have the ability to participate in international competition and mergers and acquisitions.
Significant technical upgrades in many areas
Unlike traditional labor-intensive products, machinery and equipment manufacturing is a labor, capital, and technology-intensive industry. Its products are relatively complex and require high technical content. Relative to capital, labor, and other factors of production, technological progress has a greater effect on the industry. Significant. Because with the rise of wages, China’s traditional labor cost advantage is increasingly difficult to become a competitive weapon, and it must be able to obtain competitive advantage through continuous technological progress and efficiency. Therefore, the positive effects of future product and technology upgrades on business performance will also become more apparent. In this process, advantageous enterprises and enterprises with strong innovation ability will be in a more favorable position in market competition.
Although it is difficult for the author to grasp in detail which sub-sector or product technology will make a major breakthrough in the short-term or at some point in time, but from the analysis of dynamic changes in some areas in recent years, the author believes that: domestic CNC machine tools, port lifting equipment There are more and more signs of continuous upgrading of technologies in such fields as crawlers, crawler cranes, large open-pit mine excavators, concrete pump trucks, all-road truck cranes, low-speed marine crankshafts, high-power diesel engines, and shield machines. The corresponding enterprises are Shenyang Machine Tools and Zhenhua. Hong Kong Airport, Sany Heavy Industry, Zoomlion, Taiyuan Heavy Industry, Hudong Heavy Machinery, etc. should have more opportunities for development due to technological progress.
Related Links: Construction Machinery: Renewal
In 2006, sales revenue of the construction machinery industry in China reached a record high of RMB 162 billion with a growth rate of 28.36%. After entering the year of 2007, the construction machinery industry continues to maintain its prosperity. In the first quarter, the growth rate of the total industry output value reached 35.52%, sales revenue growth rate was 30.4%, and export growth rate reached 53.99%. Among the major products, sales of motor graders, construction cranes and excavators grew fastest, reaching 67%, 50.4% and 30.0%, respectively. Others such as forklifts, loaders, bulldozers and pavers also maintained rapid growth.
In 2007, the growth rate of sales of China's construction machinery industry is expected to be more than 25%. The following three factors are mainly taken into consideration: strong domestic demand, export acceleration, and import slowdown.
In addition, due to the "high-speed rail" investment in the climax, the demand for rotary drilling rigs, concrete mixers, pump trucks, cranes, excavators, loaders, road rollers, and shield machines in construction machinery has increased substantially, giving the entire construction machinery The industry brings strong demand. In the first half of 2007, the significant increase in sales of cranes, pump trucks, and rotary drilling rigs that exceeded market expectations was due to the “high-speed rail†effect.
Shipbuilding: Benefits continue to grow rapidly
In the first quarter of this year, China’s new ships took on the world’s largest number, with a global share exceeding 50%. Since 2003, the global supply of new shipbuilding has been in short supply, and orders have increased significantly. The major shipbuilding countries Japan and South Korea have been unable to meet shipowner demand due to capacity constraints, coupled with the rapid increase in China’s shipbuilding comprehensive level and initiative to increase new ship acceptance efforts, resulting in new The number of vessels undertaken has increased significantly. Entering 2007, China's new ships have seen a substantial increase in the number of new ships, which surpassed Korea’s 10.5 million for the first time and Japan’s 3.7 million dwt for the first time and ranked first in the world.
Due to various reasons such as production increase, order price increase and production efficiency improvement, the economic benefits of China's shipbuilding industry have been rapidly rising since turning losses into losses since May 2004. In 2007, the profits of the shipbuilding industry increased by 487% from January to February. Due to the high shipping prices this year, coupled with factors such as the increase in production and production efficiency, it is expected that the economic efficiency of the industry will remain high throughout the year, with an increase of more than 50%.
Machine tool industry: accelerate industrial upgrading
The rapid development of China's machine tool market has enabled China's machine tool consumption, output value and import and export volume to continue to increase in an all-round way in 2006, and this good development trend has continued in the first half of 2007. According to statistics from the Federation of Machinery Industry, the growth rate of the output value of the machine tool industry in the first quarter was 33.4% year-on-year, an increase of 3.51 percentage points year-on-year. Among them, the output of CNC metal cutting machine tools increased by 30.27% year-on-year, and the number of CNC metal forming machines increased by 30.43% year-on-year. The growth rate was basically the same as that of the same period of last year, and was significantly higher than the average of 21.48 and 23.9 percentage points for ordinary machine tools.
The main reason is that the pace of technological upgrading is accelerating, and the self-sufficiency rate of CNC machine tools and machining centers has been significantly improved, breaking the foreign technical blockade of numerical control systems, and breakthroughs have been made in the development of high-end CNC machine tools, and a new system for the development of numerical control technologies has been initially formed.
At present, the state attaches great importance to the development of CNC machine tools, and has issued and implemented a series of policies and measures to provide a good opportunity for the development of China's CNC machine tool manufacturing industry. The average annual growth rate is expected to exceed 30% in the next few years.
Technology enhances competitiveness The machinery industry is in a golden age
Editor's note: Compared to 2005, the machinery industry re-emerged in a high-growth trend in 2006, and due to accelerated exports, product technology upgrades and new product contribution rate, indicating that the machinery industry will be in a golden development period in the next few years. In the first half of 2007, the high growth of the machinery industry continued the high boom in 2006. Although the industry expects the growth rate to decline slightly in the second half of the year, in the entire manufacturing industry, the machinery industry is still in strong demand, stable competition, and strong profitability. , exports and imports are rapidly replacing, and national policies strongly support the development of the industry. In addition, compared with other industries in the manufacturing industry, the growth rate of the machinery industry is still at the forefront.