Construction machinery industry: improving margins

    The latest National Bureau of Statistics data show that the special equipment industry profit margins steady rise in income among an improvement. We believe that the profitability of the industry is due to the recovery of investment in fixed assets during transport acceleration.overhead bridge crane Although the equipment industry showed signs of recovery signal, the market for the industry's major manufacturers still have concerns the quality of earnings.
Special equipment industry earnings recovery. The latest National Bureau of Statistics data show that in the first four months of specialized equipment industry (including construction machinery manufacturers and coal machinery manufacturers) of revenues and profits continued to recover. During the period, the industry's revenue grew 10.40 percent, an increase of 10.08% compared with the first three months has accelerated. The first four months of year on year decline in industry profits from a quarter narrowed to -11.40% from January to April of -2.10%, from one-quarter profit rose to 5.58 percent from January to April to 5.97%. We believe that the profitability of the industry's recovery is due to transport of fixed asset investment accelerated. First four months of transportation growth in fixed asset investment up 22.0% from a quarter from January to April rose to 23.7%.

     Concerns the quality of earnings.overhead gantry crane Although special equipment industry showed signs of recovery, the market for major manufacturers within the industry cash flow and quality of earnings still have concerns. A quarter of the total trade receivables turnover days were 74.04, 68.11 over the previous year increased. Recent rumors on the market so that investors Zoomlion sales data's credibility into question. Subsequently, Zoomlion A shares and H shares traded in May 27 is suspended.

     Will be more emphasis on cash flow management. In the early stage of recovery equipment industry, we believe that the market will pay more attention to the quality of earnings reflect the operating cash flow.steel crane In order to control credit risk and enhance operating cash flow in the short term machinery manufacturers will continue to tighten credit sales.