Construction machinery ushered in both volume and price

Industry events: Excavator sales exceeded expectations in March, and prices for excavators and pump trucks have recently risen.

In March, domestic sales of excavators were 49,408 units, a year-on-year increase of 11.6%, exceeding expectations (9280 units were sold in February, a year-on-year decline of 50.5%). Recently, mainstream manufacturers such as Sany, Zoomlion, Xugong, etc. have successively started to increase prices of hot-selling products such as excavators and concrete pump trucks, ranging from 5% to 10%. The construction machinery industry is showing a trend of rising volume and price, and the industry boom has risen significantly.

Principle logic: The upstream is accelerating the recovery and rush work, and the product demand is added to the second quarter, and the growth rate is up.

Benefiting from the recent upstream industry's accelerated resumption of work and catching up with the progress, the demand for construction machinery was largely delayed in the first quarter and superimposed to the second quarter. Good short-term catalyst.

On the whole, with the gradual control of the domestic epidemic situation, the recovery of infrastructure investment, and the stimulation of new infrastructure projects, under the influence of the concentrated resumption of work and the rush effect, we expect that the sales of construction machinery will pick up in the following months, and the peak season will shift. The off-season is not short; some popular products will have a slight price increase; construction machinery has ushered in a rise in both volume and price. The short-term data of construction machinery has crossed the upward turning point, the medium and long-term space is further improved, and the industry concentration is rising, leading companies will benefit significantly. Especially under the background of the recent decline in the fundamentals of most industries, the fundamentals of the construction machinery industry have seen an upward trend, and it is recommended to pay attention to its configuration value. Maintain the "Buy" rating of Zoomlion (A + H) and Sany Heavy Industry; it is recommended to focus on companies such as XCMG and China Longgong (H)