From the "product to sea" jump to the "industry to sea" construction machinery factory overseas expansion change method

-- Industry fluctuations make enterprises more resilient

In the past year, due to the decline in domestic real estate infrastructure investment, domestic sales drag and other factors, the overall performance of the domestic construction machinery market is flat, excavators, loaders overall sales fell year-on-year, demand is weak. But in sharp contrast, from the current disclosed 2023 annual report, construction machinery listed companies in the construction machinery industry as a whole in the cold situation to show a strong resilience, profitability level against the trend to improve, around the overseas business to upgrade the method of growth secrets.

The overall cold market is the true portrayal of the construction machinery industry in the past year. According to incomplete statistics, in more than 10 construction machinery and equipment categories announced by the China Construction Machinery Industry Association, nearly 70% of the overall sales of products in 2023 have declined.

Taking excavators, loaders and other major varieties as an example, according to the data of the China Construction Machinery Industry Association, the overall sales of excavators in 2023 decreased by 25.4% year-on-year, and the overall sales of loaders decreased by 15.8% year-on-year, mainly due to the drag of domestic sales.

Compared with the sluggish domestic market, the export sales data of excavators and loaders in 2023 are sharply contrasted, of which the export sales of loaders in 2023 increased by 11.5% year-on-year, while domestic sales fell by 30.1% year-on-year.

It is worth mentioning that, driven by the globalization strategy, Zoomlion continues to move towards the high-end of the global value chain. According to the annual report, the company's overseas revenue in 2023 reached 17.905 billion yuan, an increase of 79.2% year-on-year, and the proportion of overseas revenue further increased to 38.04%, hitting a record high.

"On the one hand, the overseas market expansion has achieved remarkable results; On the other hand, excavators, aerial working machinery, mining machinery and other emerging business segments have developed rapidly; At the same time, the company continued to promote cost reduction and efficiency, operation and management level continued to improve, and profitability effectively improved." For the performance growth in 2023, Zoomlion said so.

Not only Zoomlion, according to Shenwan industry classification, in the disclosure of 2023 annual report of 19 construction machinery listed companies, there are 15 net profit growth, of which the growth rate of more than 30% of 11.

"There are no other than three reasons to achieve performance growth, first, the moat of high-quality leading listed companies is deep, through comprehensive management to reduce costs and expenses, and to minimize the impact of domestic sales fluctuations; Second, the export business performance is good; The third is to actively explore high-quality products in emerging areas and further build the ability to prevent risks." Some industry insiders told the China Securities Journal reporter that if you want to prioritize these reasons, it can be clear that the high-quality development of export business is an indispensable factor for the growth of relevant enterprises.

In the view of the above people, the construction machinery industry is undergoing transformation, and can grasp the opportunities for industry change, especially the enterprises that have planning and judgment to reshape the operation mechanism of overseas business, and the future development is expected to be guaranteed.

As for the market development trend of the domestic construction machinery industry this year and next year, the industry generally believes that the overall is still in the bottom area, but the follow-up trend is relatively clear. "Overall, in recent years, the market boom is not high, but the risk of continuing to decline in the market has basically resolved." Right now, the market is in the bottom zone and is not far from recovering." Fei Chunjiang, chairman and general manager of Komatsu (China) Investment Co., LTD., expects that the domestic construction machinery market has been in the end, and there will be a small and gradual recovery.

Meng Xianghong, deputy general manager of the production supervision center of China Railway Co., LTD., also believes that the purchase of related construction machinery and equipment is expected to pick up in the second half of this year and may grow steadily next year. In the view of Baiyun Fei, deputy general manager of the operation management department of China Railway Construction Co., LTD., even if there will be no significant rebound in 2024, it will slowly pick up in 2025.