This year, the construction machinery industry is generally cold, in addition to forklifts, and the segmentation of aerial work platform maintained a high growth rate.

It was learned that with the popularity of aerial work platforms in China, many blank new markets have been tapped, and the product penetration rate is still improving. In recent years, the annual growth rate of high machine ownership has basically remained at 40%-50%, as of now, the domestic aerial work has exceeded 500,000 units, and it is expected that the market will reach 627,700 units in 2023, an increase of 40%. It is expected to exceed 1 million units by 2025. In addition, the pent-up market demand in overseas developed markets in the past few years is being centrally released, and relevant domestic manufacturers are increasing production expansion and "going to sea" to grab share.

The penetration rate is still improving

Compared with the traditional climbing tools, the aerial work platform can significantly improve the construction efficiency, shorten the construction period, and reduce the operating cost. Due to the core needs of safety and efficiency, the penetration rate of aerial work platforms is still improving in the first half of the year.

China's per capita market is low but growing rapidly, and has become the third largest market in the world. According to the authoritative magazine "Access International" of the British KHL Group, five Chinese enterprises are listed on the list of "Top 20 Global aerial work machinery manufacturing Enterprises in 2022" (Access M20). Xugong ranks first in China and third in the world. Xugong Machinery (000425.SZ) said on the investor interactive platform that at present, Europe and the United States are the main consumer areas of the global aerial work platform, and the domestic aerial work platform industry started late, and the product penetration rate has increased year by year, and is currently in the growth stage.

The securities department of Zhejiang Dingli (603338.SH) told the Financial Union reporter that driven by factors such as the gradual disappearance of the demographic dividend, the improvement of safety awareness, the improvement of construction efficiency requirements and the diversification of construction scenarios, the penetration rate of aerial work platforms in the domestic market and emerging markets has increased; In addition, the market of overseas developed countries and regions is mature, the stock market is large, and the replacement demand is stable. From the perspective of industry trends, the number of aerial work platforms in Europe and the United States is growing steadily, and the demand of domestic and some other emerging countries is in a stage of rapid development.

Domestic manufacturers are selling high machines, and the rental market is also developing rapidly. It is understood that China Railway Emergency (603300.SH) this year, the overall rental rate of high-altitude work platform shows a high level, the company's securities department told Caiyan reporters that the high-altitude work platform is not only used in the field of housing construction, its downstream application field is wide, such as the transformation and construction of the airport, the transformation of industrial plants and follow-up maintenance, less affected by a single industry. In addition, the industrial chain development time of aerial work platform is not long, the penetration rate is not high, compared with other traditional mechanical equipment, is a relatively new product. For the traditional climbing equipment, such as ladders, scaffolding, hanging baskets, etc., the replacement process is still accelerating, so the aerial work platform rental market demand has been very strong, is expected to remain in the second half of the year.

On the one hand, the domestic high machine penetration rate has increased rapidly, and on the other hand, the cost side has declined, which has brought about an increase in the gross profit margin of relevant companies' high machine products. A few days ago, Zhejiang Dingli has disclosed the pre-increase in performance announcement, the company is expected to increase net profit in the first half of the year by 40% to 60%. The company's securities department said that the company optimized the product structure by promoting new products; At the same time, the company promotes the development of the global market and expands sales channels. In addition, external factors such as raw material prices, sea freight and exchange rates have a positive impact on profit growth.

The main raw materials of the products of the high-altitude working platform manufacturers are steel. Cao Jianyong, chief analyst of Shanghai Steel Union steel business group, told Cailiannews that steel prices in the first half of 2023 showed a "N" type trend, driven by high supply and weak demand, steel prices entered the downward channel and stabilized until the end of May. Statistics show that as of June 30, the national billet price index of 3,564.54 yuan/ton, a year-on-year decline of 13.08%.

The head enterprises increase the size of the expansion of production, vigilant against excessive competition brought about by the market "excavator"

At the same time that the "cake" of the aerial work platform continues to grow, the competitors who enter the field to grab the cake have also begun to increase. A few years ago, Xugong Machinery, Zoomlion and other domestic construction machinery giants have entered the high-altitude work machinery industry, construction machinery head enterprises in the high-altitude work platform manufacturing layout has been on the line.

At present, Lingong Heavy Machinery, Zoomlion intelligent high machine, Xingbang intelligent step up the listing pace, Hongxin Construction and Development (09930.HK) recently officially listed on the Hong Kong Stock Exchange. According to incomplete statistics, only in Hunan, including Sany Heavy Industry (600031.SH), Zoomlion (000157.SZ), Sanhe Intelligent (002097.SZ), Xingbang Intelligent City company are in the layout of new production capacity of aerial work platform.

Zhejiang Dingli Securities Department told reporters that the company's annual output of 4,000 large intelligent high-altitude platform project main construction completed, has entered the manufacturing equipment commissioning stage, the company than the original planned construction cycle has been accelerated, will be completed as soon as possible into production work. It is reported that the project mainly produces intelligent high electric arm type (36-50 meters), shear fork type (33-36 meters) and differentiated aerial work platform, which will enrich the company's product line after the project is put into operation.

She further said that the domestic market competition is still relatively fierce, the company is also accelerating overseas sales efforts in recent years, the gross profit margin of sales to foreign products is higher than that of domestic. According to reports, the company is still based on scissoring fork products, followed by arm products and mast products. The company will continue to increase the sales of arm products and optimize the product structure.

In 2022, Sinbang Intelligence's overseas sales revenue doubled year-on-year, with international sales accounting for 30%, and according to the company's development strategy, this figure will exceed 50% by 2025.

"China's aerial working machinery in the domestic gradually achieve import substitution and gradually to the world, has now occupied a certain market share in Europe and the United States and other developed countries, is expected in the future China's aerial working machinery leading enterprises in the global ranking and share will be further improved." A high-altitude working machinery industry told reporters. According to the forecast of relevant institutions, in 2022, the number of equipment in China's aerial work machinery leasing industry market will reach 448,400 units, an increase of 36%. It is expected that the market will reach 627,700 units in 2023, an increase of 40%.

It is worth mentioning that Zeng Xiang, the construction machinery industry think tank expert and the chief consultant of Beijing Elite Wisdom Hui, publicly said recently that the potential demand space of the high machine market is huge, and the incremental market attributes have not changed, but may usher in the first inflection point in the next 2-3 years. The demand dividend has achieved the rapid rise of local brands, the traditional business philosophy of "scale wins" has led to excessive competition, rapidly amplified market demand superimposed attractive profit margins, attracted more new participants, stimulated the rapid expansion of the overall production capacity of the industry, to be vigilant about the future of China's high machine market "digging machine".