Machinery industry is facing structural differentiation

In the rapid growth of fixed asset investment and driven by manufacturing, machinery industry is showing continued rapid growth. 2010 January-April, machinery industry total industrial output value 4.078773 trillion yuan, up 40.43 percent; completed sales value of 3.981496 trillion yuan, up 41.47 percent.Industry export growth also recovered to normal levels, 1-April exports of 398.7 billion yuan trades, up 30.4%, higher than in March increased by 4 percentage points, the basic trend of the export recovery uncertain.
Machinery industry in the first half to keep sales booming, and is expected in the second half will continue to run at a high level, growth may be slightly down, we determine annual revenue growth in the industry for more than 35%, profit growth and income less the same.
Faced with high pressure machinery, machine tools and other growth to be relatively stable. Jan-Apr machinery sub-sectors in the growth rate of more than 40% have engineering machinery industry, machine tool industry and Machine Components Industry, in which the momentum is still the best construction machinery industry, the cumulative growth rate of 52.3%, compared with 1 - March increase of 3 percentage points; machine tools, basic parts from January to April growth rate were 41.9% and 40.5%.We believe that the real estate industry as state efforts to control the intensity of some of the works machinery is not optimistic about future growth prospects, so in 2010 construction machinery Zengsu will show high to low, estimated industry growth rate is 25-30% throughout the year. Machine tools and basic items such as the growth of strong stability.
Integration of military assets in the field is entering full swing phase. China Aviation Industry Group's capital operation in the forefront of major military industrial groups, the operation of the helicopter's potential capital investment opportunities. We also focus on Aerospace Science and Technology Group in the satellite areas and the integration of electronics and weapons industry groups in the field of integrated optoelectronics.
Considering the international market valuation, and our engineering machinery, machine tools and other key sub-sectors of the valuation analysis, we maintain the machinery industry "cautious recommendation" rating, focusing on Kunming Machine Tool, Zoomlion, Xu Machinery companies Listed military assets into the company's potential for, and the continued growth of the industry is expected to clear, we maintain the military's "recommended" rating, focusing on new Huaguang, aerospace electronics, Chinese satellites.