Machinery industry is typical of the manufacturing sector, mainly in the development of national economy provides all kinds of mechanical equipment or device. According to the national bureau of statistics caliber, it including six level 1 son industry: fabricated metal products, general equipment manufacturing, special equipment manufacturing, instrument and apparatus, industry, shipment equipment manufacturing and electrical machinery manufacturing, typical of the mechanical products such as automobile, shipbuilding, generators, machine tool, engineering machinery, mining machinery, container and so on.

      Mechanical industry in China complete range, large scale, in 2009 the overall sales income nearly 9 trillion yuan RMB, second only to Japan ranking second in the world, accounting for about 15% of global machinery sales; Exports reached us $242.5 billion, the world's fourth place; Value added of industry more than 2 trillion yuan, accounting for about 8% of GDP in China; Mechanical industry is the largest contribution to the national industrial development of the industry, economy, of the total more than two-thirds of the equipment manufacturing industry. So machinery industry equipment manufacturing industry is the most important part of China's industry is the "back".

      The economy of ChongHuaGong and population urbanization is driving China machinery industry development intrinsic factors: in 2009, the value added of industry accounts for more than 60% of heavy industry than, urbanization rate reached 46%, and has been for years to keep rising. In the process, our industrial structure will be assembling industry technology intensive processing to the industrial transformation, thus to pull of mechanical products is in great demand.

      The global industry shift is driving China machinery industry development of the external factors: because China's machinery industry has the most perfect developing the design and manufacturing of industry chain, bucket teeth with comprehensive human and raw material costs of comparative advantage, so in recent years the overseas manufacturing in succession to domestic transfer, reflected in the mechanical product exports into rapidly increase, expanding trade surplus.

      So, we think China machinery industry exists in long-term investment opportunities, but in the choice of investment opportunity, to grasp the periodical and wheels moving characteristics.

      Periodic: most mechanical products belong to investment, the demand from downstream industry capital expenditures, and then depends on the downstream industry profit level or the government's investment intensity; Thus economic cycle of downstream industry in profit or government investment cyclical fluctuations, will cause the cycle of mechanical products demand fluctuation. Note that the periodicity of mechanical products more reflected in demand, not the product price changes, in the top and bottom of the cycle demand great differences often. For example by shipping industry boom slowdown, 2010 1-August new global shipping order only about 15 million DWT about 90% year-on-year decline.

      Wheel move: due to the different mechanical product life cycle and downstream is different also, so in the different stages of economic cycle, each fine molecular industry is not consistent performance, often present different son cycle characteristics, form wheel move. For example the government releases 4 trillion investment planning, because investment focus in the railroad, highway construction field, so in economic recovery process, railway equipment and engineering machinery first benefit, and then is other child industry, recovery order is different, the investment opportunity is also different.

      Overall, our investment ideas is first according to the market demand of the products, the boom of the development of market access barriers of space and determine suitable for investment industry son, then choose industry within the incentive mechanism, the r&d strength and profit and sales strategies good performance in the listed company as investment mark, in order to earn extra income.

Author:Dongyang new kouyate precision casting Co., LTD
Website:http://www.zjsinyate.net/
Main Product:bucket teeth