Construction Machinery Widening Gap Between The Strong Export Growth In Profit

Construction machinery industry leading companies Half an Annual Report of 2006 has been announced, from the overall situation, the performance of the following characteristics: concern profit growth, export growth is further accelerated, as many companies are an important source of profit; Also, the construction machinery industry and other business enterprises are also widening the gap between.

As the first half of 2006, growth rate of investment, construction machinery as strong domestic demand, the company's main revenue and net profit have experienced substantial growth, and March 1 G, G Alliance, together G, G LIUGONG, G. Hill and other leading businesses pushing the profit growth of more than 50%, G Hill pushed the biggest increase in net profit, an increase of 165.84%. G is the largest enterprises in the first half of the net profit Alliance, the first half profit of 254 million yuan, followed by G on March 1, the net profit reached 242 million yuan.

Net profit from the construction machinery and the growth of income, have also contributed to improved product gross margins. Major enterprises, the main business income is the fastest-growing G. March 1, the first half of the income growth of 67% and gross margins of the G LIUGONG largest increase, gross margins increased by 2.96% and reached 19.07%. G. March 1 is the main reason for the substantial growth in the first half sales revenue continued strong construction market, there has been a corresponding growth in demand for concrete machinery, most of the first half due to a shortage of products, the majority of construction machinery product prices remained stable or increased slightly. In addition, a small drop in the price of steel products for the profitability loader greater impact, the main loader G. LIUGONG gross margins have improved quite a lot.

Half an Annual Report mechanical engineering companies were very concerned about another phenomenon is the rapid growth of export revenues, the fastest growth rate in export earnings was an G. LIUGONG, representing an increase of 275%, while export earnings is the largest enterprises G. together half of the exports revenue reached 331 million yuan. China's construction machinery industry more advantages in the international arena because of the significant performance improvements and price competitiveness of China's construction machinery products by the international market especially the markets of developing countries in general. G which together account for over 25% of export earnings.

In addition to the more traditional exports of forklifts and bulldozers, Half an Annual Report 2006 reflects another trend in the past, exports are also less rapid growth in the export of certain products, including loaders, concrete machinery, road machinery. The profitability of export products are usually higher than the domestic sale of products, so far as is quite obvious that the impact on the profitability of enterprises. Export growth requires sustained attention attracted investors, and this trend is expected to last for a fairly long period of time, China's leading construction machinery industry enterprises into the international market will be the most important producers. Some enterprises in export earnings to further improve the proportion of total revenue, making the development of these enterprises more stable domestic macro-control, the effect will be small.

Half an Annual Report 2006 is a phenomenon also reflects the growing divide between enterprises, the profitability of the strongest sectors in the strong demand in the period was a huge profit, the profit growth of other business is not ideal. For example, G. Xiamen revenue growth rate of only 3.96% for the main business, which is a slight decline in net profit. XCMG main operating income dropped 16%, net profit is only 0.02 yuan per share, far behind the industry's leading businesses.

Construction Machinery Industry in the company's net rate of return there is a big difference between the same, the highest net rate of return reached 12.94% G together, and only less than 1% lower XCMG. Reflect the profitability gap between the competitiveness of the company's products and market position is further widening the gap between. The project is expected machinery of the gap between the companies will continue to increase profitability, the future impact of various macro-control will be different.

Comprehensive Evaluation of the performance of engineering machinery enterprises in the first half of 2006, total industry revenues and profits are rising to a new level, and the advantages of better performance. The growth in export earnings for the engineering machinery enterprises have important significance since it will enable the future development faster and more stable. In addition, the need to pay attention to the advantages of mechanical engineering enterprises and other enterprises in further widening the gap between, it should not only focus on the future development of the construction machinery industry overall trend, but more importantly, it should focus on an analysis of each company's specific situation.