Machinery Manufacturing Faces Historic Opportunity to Improve Mechanization

In 2009, driven by the government's series of stimulus policies, the machinery industry showed a clear recovery, and the income growth of the machinery industry quickly rebounded. Despite the impact of the low base in the same period in 2009, the year-on-year compound annual growth rates of special equipment manufacturing and general equipment manufacturing from the same period of 2008 to the end of February 2010 were 25.39% and 21.82%, respectively, indicating that the industry has basically stepped out of the financial crisis.

However, at a historic moment when China’s economy is facing a transition from a traditional model of investment and export driven to a new growth model centered on expanding domestic demand, economic stimulus policies have gradually withdrawn, fixed asset investment growth has slowed down, and the entire machinery industry has slowed down. The industry will face the pressure of slower growth, and it will also face a good opportunity to enhance the degree of mechanization and structural transformation through mergers and acquisitions.

Analysts pointed out that with the rapid development of the industry and the deepening of reforms, competition among enterprises will become increasingly fierce. Under the dual role of the market and policies, mergers and reorganizations in the industry will advance at an unprecedented speed, and a large number of disadvantaged enterprises will be eliminated. Out, and a group of competitive companies will gradually come to the fore.

According to the "Industrial Blue Book" published by the Chinese Academy of Social Sciences, China entered the middle of industrialization in 2005. Our country is facing a period from the general processing to the technology-intensive processing, while for the eastern region, it has entered the stage of transformation from a high degree of processing to a technology-intensive one. In the future, China’s industrialization will inevitably shift to a new type of industrialization with high technological content, low resource consumption, and low environmental pollution, and realize the transition from an industrial power to an industrial power. Among these, it must be accompanied by an increase in the degree of mechanization and the transformation of machinery manufacturing.

Among them, AVIC is currently the only aerospace manufacturing platform in China. When China’s aviation industry is in an early stage of growth, its subordinate core asset platform has a huge investment value. 2010 is a key year for AVIC's integration, and the integration and direction of the industry are hidden. Investment Opportunities.

According to data from the National Bureau of Statistics, in 2008, the industrial output value of China’s aerospace manufacturing industry was 99.475 billion yuan, while the revenue generated by Boeing’s civil aviation manufacturing alone reached 28.263 billion US dollars (approximately 192.1 billion yuan). China's national aerospace manufacturing output value is only half of Boeing's civil aviation manufacturing revenue. China's aviation manufacturing industry has broad prospects for development, and AVIC is currently the only domestic aviation manufacturing platform. With the great development of China's aviation manufacturing industry, its subordinate core capital platform has huge investment value.

This year is an important year for AVIC's asset integration. In the second half of the year, many listed AVIC companies that have not yet carried out asset integration have the opportunity to integrate. Together with China's aviation manufacturing industry is in a growth stage, integration and future growth. We will further improve our company's valuation. The core listed companies that have not yet been integrated by AVIC have good investment value.

The latest investment strategy report of the securities industry believes that it continues to be optimistic about the great development prospects of aerodynamics and Hongdu Aviation as a core asset integration platform, and expresses concern about *ST Changhe. As the core of aircraft manufacturing, aero-engines will fully enjoy the development of military and civil aviation industries, so the development prospects of aviation power are bright.