Production and sale of machinery industry grew faster core parts business prospects

Machinery industry imports and exports in the first quarter, 48.64% respectively. Imports than exports, appears deficit of 203 million US dollars for the first time since the end of 2006, showing an improved faster than the international economic recovery in demand. In 2009, continued growth in imports machine tools parts, display the domestic machine tool parts does not meet the requirements of hosting industry. Therefore, core components companies still have considerable room for development in the future.

Auto parts industry revenue increased

In January-April this year, mechanical industry production and sales growth in the first quarter are above 42%. Better performance of listed companies, engineering machinery of 14 listed companies total 32.52 billion yuan in operating income in the first quarter, an increase of 63.6%, realized net profit attributable to the parent company of 3.31 billion yuan, an increase of 151.1%. Construction machinery sector net asset yield 5.3%, 3.7% per cent growth over the same period last year; sales margins for 21%, 3.2% per cent increase over the same period last year.

In 2009, the machinery industry 119 listed companies operating income and net earnings decreased by cent and 0.4% respectively. But in the first quarter of 2010 year, listed companies achieved a total turnover and net profit of 101 billion yuan, and 6.69 billion yuan, up rose, 40.8%, 2009 four seasons, respectively, of the chain down and 2.53% up 19.83%. 7 major plates, all revenue growth is positive, the top auto parts and bearings, 72.6% respectively; net profit growth of the top four air conditioning parts, construction machinery, railway equipment and machine tools, namely growth, 164%, 89.5%.

Machine tool parts imports continues to grow

Sub-industries, up growth above 40% construction machinery, machine tools, mechanical parts and internal combustion engine industry, 1 per cent in March from lower-growth industry is the mining industry, an increase of 19.68%, is the lower growth of the industry.

Exports in January-March, 10 out of 11 sectors of machinery industry cumulative positive YOY growth of the industry, which increases maximum of three sectors namely industry of internal combustion engine (49.29%), Instrumentation (41.28%) and base (28.45%). Imported from, January-March in 11 industries of machinery industry, with the exception of heavy mining industry (-6.97%), remaining cumulative positive YOY growth of the industry. Month of March, imports of construction machinery industry grew the fastest, representing an increase of 95.19% heavy mining industry (-21.13%) is the only industry imports fell; imports grew more than 20% in other industries.

Comprehensive policy and downstream of the main development trends, machine tools is expected to achieve stable growth in the future, 2010 machine industrial production growth is expected to reach more than 20%, promising high-end CNC machine tools, in particular prospects for development of core features. According to the 2009 machine parts imports continues to grow, domestic machine tool parts does not meet the requirements of hosting industry. Therefore, core components companies still have considerable room for development in the future, such as spindle bearing technology.