The Zhitong Finance App learned that on December 3, relevant officials of the Ministry of Industry and Information Technology said that the Ministry of Industry and Information Technology will focus on promoting the steady growth of the equipment manufacturing industry, planning a new round of steady growth policies for the equipment manufacturing industry, and promoting the introduction of incremental measures. A relevant person in charge of the China Machinery Industry Federation also revealed that the “15th Five-Year Plan” for the machinery industry is being prepared, and the plan will pay full attention to the future healthy development of enterprises with various forms of ownership, including foreign-funded enterprises, in the Chinese market.

Facing the current situation, Xin Guobin pointed out that next, the Ministry of Industry and Information Technology will focus on promoting the steady growth of the equipment manufacturing industry, planning a new round of steady growth policies for the equipment manufacturing industry, promoting the introduction of incremental measures, implementing large-scale equipment updates and consumer goods trade-in actions to boost the consumption of commodities such as automobiles, and actively cultivate new growth engines such as intelligent connected new energy vehicles, low-altitude equipment, and service robots, and contribute more to the steady growth of the industrial economy.

In terms of improving the resilience and safety level of the industrial chain supply chain, Xin Guobin pointed out that the Ministry of Industry and Information Technology will implement high-quality development actions for key industrial chains, promote major scientific and technological projects such as industrial machines, intelligent manufacturing systems and robots, promote the integrated development of scientific and technological innovation and industrial innovation throughout the chain, accelerate the construction of a pilot test verification platform, and continuously improve basic industrial public service capabilities.

According to data released by the China Construction Machinery Industry Association, domestic sales of excavators continued to grow by more than 20% in October, and the monthly export data also changed from cold to warm, with a year-on-year increase of nearly 10%. Overall excavator sales data for the year experienced a downward trend in the previous 8 months and began to change from negative to positive.

According to the data, 16,791 excavators of various types were sold in October 2024, an increase of 15.1% over the previous year. Its sales volume in China was 8,266 units, up 21.6% year on year; export volume was 8,525 units, up 9.46% year on year. From January to October 2024, a total of 164,172 excavators were sold, up 0.47% year on year; it sold 8,2,211 units in China, up 9.8% year on year; exported 81961 units, down 7.41% year on year.

The monthly operating rate of major construction machinery products in October 2024 was 65.1%, an increase of 1.31% over the previous month. Among them: excavators 70%; loaders 63.9%; truck cranes 80.1%; crawler cranes 63.5%; tower cranes 47.5%; rollers 57.8%; pavers 83.4%; rotary drilling rigs 55%; off-highway mining dump trucks 55.5%; concrete pump trucks 45.3%; mixers 47.9%; forklifts 41.1%.

As to whether Q4 will break out of the bottom and usher in an upward boom cycle in the industry, many construction machinery-related people interviewed are still cautious, but they all believe that since this year, judging from domestic demand, local equipment renewal subsidy rules will be implemented one after another, the replacement of old equipment stocks will be promoted, along with the elimination of channel inventory, and future demand will tend to be benign. Although the high export growth rate has been “downgraded”, due to the large capacity of overseas markets and the expansion of the product spectrum of domestic manufacturers, increasing export value is still the main source of future profit growth for enterprises.

According to the Fangzheng Securities Research Report, the downstream excavators, cranes, and concrete machinery in construction machinery are mainly real estate and infrastructure, benefiting from downstream demand such as farmland and water conservancy. The growth rate of small excavation sales was the first to correct. Sales of large excavation and medium excavation also gradually stabilized, and the domestic sales growth rate of excavators has maintained steady year-on-year growth since March. As the capital chain for terminal projects eases, it is expected that the pressure on accounts receivable from leasers and OEMs will be relieved, and parts manufacturers are also expected to benefit indirectly.

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