As of December 31, 2011, the cumulative decline in the machinery and equipment index for the year was 38.48%, which was the second largest decline since 2000, second only to 2008. The main factors that led to this trend in the machinery industry in 2011 were the concentrated release of market risk, industry risk and corporate risk.
Looking into the future, from a short-term perspective, we expect the machinery industry to remain in a cyclical downturn in the first half of 2012, which will affect the valuation and earnings growth of cyclical companies such as construction machinery, and then suppress the stock price performance of related stocks. In the first half of the year, as the economy bottoms out, cyclical stocks will regain buying opportunities. In the medium term, after rapid growth over the past 10 years, domestic auto, real estate, steel, electric power, and coal industries have all gained varying degrees of expansion. Important products in the machinery industry include power generation equipment, steel equipment, and large-scale transmission and transformation. The scale expansion of electric equipment, construction machinery, heavy mining machinery, etc. has become more apparent, and has leapt to the top in the world. This indicates that China's industrialization and urbanization have entered the middle to late stage.
We believe that the scope for the continued expansion of these major industrial industries and the mechanical products they serve will be subject to varying degrees of restrictions, and the industry economy will enter the transitional phase of old and new to the growth drivers. At this stage, the decline in the growth rate of the machinery industry will be a high-probability event. Some sub-sectors that encounter ceilings in succession will risk falling behind in the new cycle in the future. Correspondingly, some emerging sub-sectors that are still in growth phase are expected to achieve greater growth in the future cycle.
Looking into the future, from a short-term perspective, we expect the machinery industry to remain in a cyclical downturn in the first half of 2012, which will affect the valuation and earnings growth of cyclical companies such as construction machinery, and then suppress the stock price performance of related stocks. In the first half of the year, as the economy bottoms out, cyclical stocks will regain buying opportunities. In the medium term, after rapid growth over the past 10 years, domestic auto, real estate, steel, electric power, and coal industries have all gained varying degrees of expansion. Important products in the machinery industry include power generation equipment, steel equipment, and large-scale transmission and transformation. The scale expansion of electric equipment, construction machinery, heavy mining machinery, etc. has become more apparent, and has leapt to the top in the world. This indicates that China's industrialization and urbanization have entered the middle to late stage.
We believe that the scope for the continued expansion of these major industrial industries and the mechanical products they serve will be subject to varying degrees of restrictions, and the industry economy will enter the transitional phase of old and new to the growth drivers. At this stage, the decline in the growth rate of the machinery industry will be a high-probability event. Some sub-sectors that encounter ceilings in succession will risk falling behind in the new cycle in the future. Correspondingly, some emerging sub-sectors that are still in growth phase are expected to achieve greater growth in the future cycle.
We are a professional manufacturer of water jet looms. The company has accumulated decades of experience and owns new-style water jet looms, single and double water jet looms, multi-arm water jet looms and so on.
High Speed Loom,Second-Hand Water Jet Loom,Toyota Water Jet Loom,Heavy-Duty Water Jet Loom
Tianchi Changzhou Textile Machinery Co., Ltd , https://www.tcloom.com