Construction machinery: downstream boom continued,] May excavator sales increased by 68%. The Construction Machinery Association released an excavator data express. The 25 excavator manufacturers included in the statistics in May 2020 sold a total of 32,000 excavators of various types, an increase of 68% year-on-year; of which 30,000 domestic ones, an increase of 76% year-on-year; exports 2223 Taiwan, an increase of 3.3% year-on-year. From January to May 2020, a total of 146,000 excavators were sold, an increase of 19% year-on-year; of which 134,000 were domestic, an increase of 19% year-on-year; 12,000 were exported, an increase of 21% year-on-year. At present, the domestic epidemic situation is basically under control, and all parts of the country are fully resumed. The downstream demand continues to boom. For export, due to the continued resumption of production overseas, the export sales of excavators have improved, and the growth rate has rebounded (in February, March, and April respectively 63%, +18%, +0.9%) to +3.3%. We believe that the long-term logic of the construction machinery sector has not changed, and the postponed resumption of work caused by the epidemic mainly affects the timing of peak construction and sales, benefiting from environmental protection demand, updates, and more active countercyclical policies in the context of the epidemic. Industry demand remains throughout the year. From January to May 2020, the industry has cumulatively sold 146,000 excavators (+19%) and domestic sales of 134,000 (+19%). The growth is better than expected, and the economy restarts and continues to promote construction machinery.
Oil service: The National Development and Reform Commission and the Energy Bureau jointly issued guidelines to clearly define key tasks for energy security in 2020. Under the requirements of the "six guarantees", various energy protection policies continued to advance. The National Development and Reform Commission and the National Energy Administration recently jointly issued guidelines to clearly define key tasks for energy security in 2020. The opinion particularly emphasizes that we will continue to vigorously enhance domestic oil and gas exploration and development efforts, and strengthen exploration efforts in key oil and gas basins such as the Bohai Bay, Ordos, Tarim, and Sichuan. Promote stable production of old oil and gas fields in the east, and increase production capacity in new areas. Accelerate the exploration and development of unconventional oil and gas resources such as shale oil and gas, tight gas, coalbed methane, etc., to ensure continuous and stable production increase. The introduction of this guidance has once again verified the continuity of the “seven-year action plan” for increasing domestic oil and gas production. The domestic boom in the domestic oil service industry driven by the endogenous demand for energy security will continue. In addition, OPEC+'s monthly monthly joint ministerial supervisory committee meeting this week further emphasized the importance of fully complying with production reduction commitments, and took measures to ensure that some countries that failed to fully achieve production reduction targets in the past month compensated. The global economy restarts to stack OPEC+ production cuts and high execution boosts, and the international crude oil market has gradually returned to balance. Firmly optimistic about the valuation repair of excellent oil service companies.
Semiconductor equipment: The domestic domestic mainstream fabs' domestic bidding rate reached 46% in June, and the domestic substitution of semiconductor equipment has been steadily advancing. China has now become the second largest market for semiconductor equipment in the world and the third largest market for semiconductor materials, and the semiconductor industry chain is accelerating its shift to the domestic market. Domestic mainstream fabs such as Changcun, Huahong, Jetta and other domestic fabs won a 46% bid rate in June. According to our statistics, as of June 20, 2020, Yangtze River Storage, Huahong Wuxi, Huali Integration, Yandong, Shanghai Jita, Fujian Jinhua, SMIC Shaoxing opened a total of 37 equipment, including domestic The equipment company won 17 bids, and the overall domestic production rate reached 46%. In terms of equipment, the etching equipment: 2 micro-silicon etching equipment in Shaoxing, China Microelectronics won the bidding center; furnace tube equipment: Jimxi won the bid for 5 furnace tubes in Shanghai Jetta, and Yitang Semiconductor won the bid for 1 thermal treatment device in Shanghai Jetta; Cleaning equipment: Shengmei Semiconductor won the bid for 2 sets of cleaning equipment from Shanghai Jetta, Xinyuan Micro won the bid for 1 Huali integrated cleaning equipment; testing equipment: Zhongke Feiwei won the bid for 1 Yandong Microelectronics front-end testing equipment; ion implantation equipment: Zhongkexin moved a 12-inch medium-current ion implanter into the production line of Shanghai Jetta; lithography process equipment: Yitang Semiconductor won a bid for a Yangtze storage dry degumming equipment. The process of domestic substitution of semiconductor equipment is steadily advancing.
