According to statistics, sales of excavators in April 2020 were 45,426 units, an increase of 59.9% year-on-year, of which domestic sales were 43,371 units, an increase of 64.5% year-on-year; exports were 2,055, an increase of 0.9% year-on-year. Since April, major domestic construction machinery manufacturers such as Zoomlion and Sany have successively issued price increase notices. The price increase products cover major construction machinery products such as concrete pump trucks, excavators and cranes, which reflects the profit repair after last year's product price reduction It also reflects the market pattern in short supply. Under the supply gap, the prices of construction machinery products rose in April.
Supply side tightened. The parts are hard enough, and the product delivery cycle is compressed. The European epidemic has a great impact, which has affected the procurement of some core components, and the cost has increased to a certain extent. In the epidemic situation, postponed resumption of production and postponed production, and the demand for construction machinery was postponed until after March, which caused the shortening of the manufacturer's delivery cycle and caused certain pressure on production capacity. Based on the advantages of supply chain and production capacity, leading companies are expected to further focus their share.
The demand side continues to be strong. Infrastructure signals continued to exceed expectations; product replacement peak period; actual export demand is still there. This round of recovery cycle is driven by long-term demand such as machine replacement, environmental protection and export, rather than strong policy stimulus. Demand is inherently high, the policy release cycle is prolonged, and the industry's high prosperity is determined. Based on the localization of the domestic market and the trend of being strong, the market share of domestic leading companies is expected to be further focused.
Compared with overseas construction machinery leaders, domestic-funded leaders have stronger global expansion strength and competitive advantage. As the globalization of domestic leading companies progresses steadily, the proportion of their overseas revenues will grow steadily for a long time, the dependence of the company's revenue on China's macro economy will decline, and the stability of performance release will increase.
The rise in both price and volume boosted profitability, and the boom determined to increase the valuation level. The increase in price and volume under the gap between supply and demand has driven profitability, and the deterministic premium and leading premium have raised valuation levels. On the one hand, as the supply and demand gap in the construction machinery industry continues to expand, the trend of rising prices and volumes is expected to continue, and the leading market share is expected to continue to increase steadily, leading to an increase in profitability. On the other hand, driven by certainty premiums and leading premiums, leading valuations are expected to rise.
