Bank's fund surface relaxes expectations of improvement in construction machinery industry

This week, the stock market rose sharply. The Shanghai Composite Index exceeded 2400 points. It closed at 2,49.63 points this week and rose 3.5%. The Shenzhen Component Index closed at 10124.15 points, up 5.29%. We expect the stock market will fluctuate strongly in the short term. This week, the performance of the mechanical sector is also relatively good. Most of them are in an uptrend. To grasp the investment opportunities in the machinery industry, we propose to seize the stronger-than-expected construction machinery sector this week.

1. Regarding the construction machinery industry, our view gradually turns to optimism. With the relaxation of bank funds, we believe that the fundamentals of the construction machinery industry have seen a better-than-expected change. At present, we look at many engineering machinery, and recommend leading companies with active mortgage business and strong product competitiveness: Sany Heavy Industry and Zoomlion.

2. The sales data of truck cranes, crawler cranes and truck cranes was announced in January this week. The data is within expectations. In January of this year, the number of truck cranes sold was 1,438 units, a year-on-year decrease of 33.3%; 68 crawler cranes were sold, a year-on-year decrease of 22.7%; and 493 units of truck cranes were sold, a year-on-year decrease of 13.1%.