Construction Machinery: Pressure on domestic demand due to high export growth

Industry demand continued to drop sharply In June 2011, 12 major bulldozer manufacturers sold a total of 1,021 bulldozers, a year-on-year decrease of 28.40% and a month-on-month decline of 14.49%. From January to June, 8,817 units were sold, a year-on-year increase of 12.40%. In April, the sales of bulldozers continued to decline sharply from the previous month. Although this month has narrowed, the decline rate still exceeds double digits. In May, bulldozer sales began to decline sharply year-on-year. Although the decline rate this month has become smaller, it is still close to 30%. The third quarter is the industry's traditional off-season, coupled with the impact of higher base factors last year, we believe that bulldozer sales will still face greater pressure in the third quarter, and the decline in sales growth since April has formed a bullish trend for bulldozer sub-sectors to begin to decline. We believe that The sales of the industry in the next 2-3 months will still be in negative year-on-year growth.

The performance of domestic and foreign sales was very different, and the export volume reached a record high. In June, 369 sets of bulldozers were exported, which was a year-on-year increase of 62.56%. The monthly export accounted for 36.14%; from January to June, 1,017 bulldozers were exported, a year-on-year increase of 69.18%, accounting for 20.61% of the total. In the first half of the year, the cumulative export volume of bulldozers has exceeded 1,755 units in the same period of 2008, a record high.

Industry concentration temporarily weakened In June 2011, the three major bulldozers sold 759 units, a year-on-year decrease of 34.28%, a month-on-month decrease of 15.01%, and a market share of 74.34%. The monthly market share showed a downward trend and the industry concentration declined. . The accumulated sales from January to June were 7,069 units, accounting for 80.17%, and the market share did not change much.

In the past three months, the product structure was tilted toward the medium-high-power model. In the past three months, the proportion of small and medium-sized bulldozers below 219 horsepower continued to decline, and the proportion of large and medium-sized bulldozers above 220 horsepower continued to rise. The adjustment of the demand structure caused the bulldozer to tilt towards the medium-high-powered model.