While the overseas market of Nuggets for passenger cars and commercial vehiclesLuckybirdcasino50freespinsConstruction machinery models have offset the negative impact of the domestic downturn through the layout of overseas business and obtained a new growth pole.
In the scorching sun of Xuzhou in May, foreign businessmen from more than 60 countries such as Australia, Brazil, Thailand and other countries entered Xugong Group. Orderly arrangement of cranes, excavators and other construction machinery products attracted thousands of foreign businessmen. While the overseas market of Nuggets for passenger cars and commercial vehicles, construction machinery models have offset the negative impact of the domestic downturn through the layout of overseas business, and obtained a new growth pole.
In response to the needs of the overseas market, Xugong Group has developed 1000-ton cranes, multi-series excavators and other products. Louis, a foreign businessman from Brazil, said in an interview that he has purchased 3000-ton wheeled cranes from Xugong, which can cover the installation of wind turbines below 10MW to meet the hoisting needs of the Brazilian wind power market in the next decade.
Aung Qisha, a foreign businessman in Thailand, said that according to the characteristics of mountainous, humid, strong sea breeze and hot climate in Southeast Asia, Xugong has launched customized products with good construction stability, high work efficiency, strong adaptability to working conditions and high cost performance.
It is worth mentioning that due to the influence of international trade, there are fluctuations in the future development of construction machinery in some overseas markets. Different from the domestic construction machinery with infrastructure and real estate as the main demand, the main demand for Australian construction machinery comes from mining, especially iron ore occupies an important position in the Australian economy. Australia is currently the world's largest exporter of iron ore, and the price of iron ore has hit its highest level since February.
Stewart, a foreign businessman from Australia, said that Australia is rich in mineral resources, and the development of the market is largely dominated by the market resources of mining resources, which will be affected to some extent by the US stock market. But overall, the market trend is upward.
The overseas market with both opportunities and challenges attracts a large number of construction machinery enterprises Nuggets. According to statistics from the China Construction Machinery Industry Association, in April 2024, major excavator manufacturers sold 18822 excavators of all kinds, an increase of 0% over the same period last year.Luckybirdcasino50freespins.27 percent, of which 10782 were domestic, up 13.3 percent from the same period last year; exports were 8040, down 13.2 percent from the same period last year; and the main manufacturers of loaders sold 9779 loaders of all kinds, an increase of 0.89 percent over the same period last year. Among them, sales in the domestic market were 5309, up 0.91 percent over the same period last year, and export sales were 4470, up 0.86 percent from the same period last year.
According to the analysis of the Lange Steel Economic Research Center, according to the monthly sales data of excavators and loaders, although the export proportion of excavators rebounded to 42.7% in April 2024, the export sales of excavators decreased by 17.9% compared with the previous month. The proportion of export sales of loaders also continued to fall back to 45.7%, and the export sales of loaders also decreased by 21.5%. It shows that the construction machinery industry shows a trend of "toughness of domestic demand and instability of external demand". In addition, from the domestic downstream demand side, in the short term, the promotion of stable real estate policy for investment and new construction is limited.
Based on this, construction machinery enterprises have planned to turn to overseas markets as early as 2023. According to the Soochow Securities Research report, in 2023, 17 A-share listed construction machinery companies achieved a total revenue of 328.6 billion yuan, an increase of 1% over the same period last year, while the net profit returned to their mother totaled 21.5 billion yuan, an increase of 33% over the same period last year. The reasons for the double increase in revenue and profits include the bottoming of domestic sales in the industry, the logical cashing of domestic main engine factories at sea, and the smooth fluctuation of domestic sales cycle in overseas revenue growth.
In the first quarter of 2024, with the promotion of equipment renewal policy, the replacement of old models and the continuous improvement of exports, the prosperity of the construction machinery industry rebounded and showed a recovery trend. In the first quarter of 2024, 17 A-share listed construction machinery companies achieved a total revenue of 83.7 billion yuan, an increase of 4% over the same period last year. At present, the domestic construction machinery industry is at the low point of the cycle, while the overseas construction machinery market capacity is three times that of the domestic one.
Specifically from the company level, at the end of 2023, around overseas regions and market segments, Xugong Group established the international enterprise headquarters and 14 regions around the world to promote the whole value chain of R & D, supply, marketing and integration, and further enhance the global operation capacity. In 2023, Xugong Group's international income accounted for more than 40%. In the same period, the revenue of Xugong Machinery, a listed company, reached 92.848 billion yuan, down 1.03% from the same period last year, and the net profit was 5.326 billion yuan, an increase of 23.51% over the same period last year. Of this total, overseas income was 37.22 billion yuan, an increase of 33.7% over the same period last year, accounting for 40.09% of the total revenue.
But whether the export growth rate of construction machinery can be maintained, Soochow Securities said in the research report that the income and growth rate of overseas sub-products of Xugong Machinery and Zoomlion 2024Q1 can be seen that although the growth rate of traditional construction machinery excavators and cranes is relatively low, emerging business sectors such as mining machinery, aerial work platforms, industrial vehicles and other categories have a low base and high income growth. Driven by the emerging business sector, even if the sales growth rate of core excavators has slowed down in 2024, the overall export revenue growth is still guaranteed.
