Sluggish demand for construction machinery to fight price war Sany micro-blogging opponents

SANY microblogging microblogging "price reduction is a poison" demand slump The engineering machinery industry price war will continue to slump, the construction machinery industry will start a price war.

Yesterday, Liang Linhe, vice president of Sany Heavy Industry and chairman of the Pumping Division, broke the news again on the Weibo, saying that competition has evolved from a dispute over the conditions of the deal to a price war. Competitors’ prices in June fell by at least 100,000 yuan from May.

Yesterday in the case of broader market conditions, the construction machinery sector shares price fell sharply as a whole, of which Sany Heavy Industry once fell more than 5% in intraday trading, Zoomlion's intraday drop was also close to 4%, XGMA shares closed even more Plunging 9.78%.

Price war

In April of this year, Liang Linhe publicly criticized competitors on the Weibo, saying that the competition for concrete equipment had reached the final madness. The competitor Zoomlion began to lock up at a large scale in Sichuan. It seems that the death after the madness began to strike.

After more than two months, Liang Linhe once again criticized competitors on Weibo: "Demand is sluggish, price cuts are not good medicine, but poisons."

This time, he did not point out the exact name of the competitor. However, people in the industry generally believe that Liang Linhe is referring to Zoomlion. The two companies are the biggest "adversaries" in the field of concrete machinery.

However, yesterday's "First Financial Daily" reporter interviewed Zoomlion, the company's sources said it should not refer to Zoomlion, may be Xugong Group, because XCMG's stock is very large.

Liang Linhe said that from July, Sany Heavy Industry will gradually increase the prices of some products. To increase the barriers to entry for the industry, no matter how competitive competitors do, they will “stick to each other” and hope that the peers will work together to reduce price. .

Concrete machinery is the most profitable sub-sector in the field of construction machinery.

This year, two large-scale cross-border mergers and acquisitions in the field of construction machinery have occurred in the field of concrete machinery: First, Sany Heavy Industries has acquired Putzmeister (Germany); Second, XCMG acquired globally famous concrete equipment companies. Schwing Group, Germany.

The world’s top three concrete machinery brands have been put under the control of three major Chinese companies. Last year, China's concrete machinery ranked first in the construction machinery industry with a market scale of 105.3 billion yuan, accounting for about one-fifth of the industry's total revenue. More importantly, the profit rate of more than 30% of the concrete machinery industry is far beyond the average level of the construction machinery industry.

Regarding the news of the price drop of the Lianglin River, a large-scale foreign construction machinery salesman told this newspaper that at present there has been no news of massive price cuts in the industry. If there is a significant decline, it should be an individual phenomenon, “Each car drops 100,000. The above is no different from suicide."

However, he also revealed that although there is no significant price cuts, but this year's market, manufacturers have significantly increased the discounts to agents, such as each car to 10,000 to 20,000 yuan discount, when agents sell, there will be room for price cuts .

The market is still not turning

Since April of last year, with the country's macro-control, the explosive growth of the construction machinery market has begun to appear a sustained downturn, so far no turning point.

“Because of the poor sales, the stocks of various companies are very high now, and the stocks in the hands of the agents are also the same.” The above-mentioned foreign construction machinery sales personnel told this newspaper, “Although the outside world often commented that there is a better picture, but we did not feel I don't expect to be able to get better until the first half of next year."

According to the data, sales of main construction machinery rollers, loaders, bulldozers and excavators fell by 29.70%, 25.77%, 29.90% and 23.92% year-on-year, respectively, after the first four months of continuous decline. From the ring data, in addition to a slight increase of 0.62% in the volume of road roller sales in May, the chain loaders, bulldozers and excavators all fell by more than 20% in the chain, being 23.30%, 22.14% and 29.28%, respectively.

According to the information released by the National Development and Reform Commission on June 29, at the end of June, the Industry Coordination Department of the National Development and Reform Commission organized a symposium on the economic situation of the construction machinery industry. The participating companies generally reflected that due to the current macroeconomic situation and the high base of the same period last year, this year 1~ In May, the production and sales of main products of construction machinery all dropped significantly, and operating costs increased, financial expenses surged, profits dropped significantly, and business operations were difficult.

The National Development and Reform Commission said that in view of the current situation, the associations and enterprises hope to implement the relevant policies that the country has already issued, and propose to continue introducing structural tax cuts, technological reforms, technological research and development, and supporting enterprises to “go global” policy recommendations to guide enterprises in transition and upgrading.

"The construction machinery is affected by the downstream of real estate, railways and other industries very much, especially the machinery in the railway field is even worse." A high-level construction machinery company in Shandong told the newspaper.

From January to May this year, the country’s railway investment in fixed assets was 129.654 billion yuan, a year-on-year decrease of 41.1%, of which, the national railway infrastructure investment was 105.48 billion yuan, a decrease of 46.9% year-on-year. The real estate industry was also unsatisfactory. From January to May, the investment in real estate development nationwide was 2,221.3 billion yuan, a nominal increase of 18.5% year-on-year, and the growth rate was down 0.2 percentage points from January to April.