Jinwu Financial News | Goldman Sachs recently released a research report summarizing the performance of China's construction machinery industry in the third quarter of 2024, pointing out that the domestic market is recovering, but at a slow pace.
Core views:
1. Product types have a significant impact on market share. Companies focusing on earthmoving machinery (such as excavators and wheel loaders), such as Sany Heavy Industries and Liugong, have strong domestic sales performance, while companies focusing on late cyclical machinery categories such as cranes, concrete machinery, and pavers, such as XCMG, Zoomlion Heavy Industries, and Dingli, continue to weaken their domestic business.
3. The growth of overseas markets indicates an increase in market share. According to Chinese customs data, excavator exports have increased significantly, and the share of Chinese companies in the global excavator market has increased.
4. In terms of profitability, cash flow, and balance sheets, non-covered companies increased gross profit margins due to increased overseas sales contributions, while covered companies reduced gross margins due to unfavorable product portfolios and changes in foreign exchange.
5. It is anticipated that domestic demand will continue to recover, especially earthmoving machinery, while other machinery categories may bottom out. Overseas markets are expected to continue to face pressure, but the decline will be reduced, and overseas sales growth for Chinese companies is expected to remain in double digits.
