Analysis of the favorable factors for the development of China's machinery industry in 2012

Reducing interest rate again within one month, guaranteeing “steady growth” and continuing to recommend construction machinery On the evening of July 5, the People’s Bank of China decided to reduce the RMB deposit and loan interest rates of financial institutions starting from July 6, 2012: one-year deposit basis for financial institutions The interest rate is lowered by 0.25 percentage points, the one-year benchmark lending rate is lowered by 0.31 percentage point, and the lower limit of the floating range of the lending rate of financial institutions is adjusted to 0.7 times the benchmark interest rate; this rate cut is only 28 days after the last interest rate cut, and is obviously asymmetric Cut interest rates. We believe that the continuously declining CPI (below 2.5 in June) and PPI provide a market environment for interest rate cuts. At the same time, the macroeconomic data in the first half of the year are lower than expected and the pressure for steady growth is greater; the two interest rate cuts are continued, and the interest rate cut cycle is expected. Has been formed; from the effect point of view, the interest rate cut will stimulate domestic demand, real estate and other capital demand, interest-sensitive industries constitute a good, so as to stimulate demand for construction machinery and other products.

Reiterate resilient recovery and steadily increase demand Two types of investment opportunities We believe that investment opportunities in the machinery industry mainly focus on the following two aspects: First, investment opportunities brought about by fine-tuning of policies, railway equipment, nuclear power, and construction machinery will benefit, especially engineering mechanical. Second, sub-sectors with stable growth in downstream demand, such as large energy equipment (such as coal machinery, oilfield equipment, and offshore equipment), energy-saving environmental protection equipment, and consumer machinery. Focus on Zoomlion, Sany Heavy Industry, China South Locomotive, Jinxi Axle, Jereh, Huibopu, Tiandi Technology, Zhengjiji, Linzhou Heavy Machinery, CIMC, China Heavy Industry, Sunbird, Robot and Aerodynamics, etc.