Yuantong Machinery

Sub-sectors with many opportunities for machinery industry has been bred, but for institutional investors, many sub-sectors only one listed company, and a small market capitalization, so configuration is difficult. Our strategy from the perspective of the industry starting to identify undervalued by the market, and has good growth prospects of the company, forming machinery industry in the small cap portfolio.
common equipment and special equipment from starting machinery industry is more easily observed. for general machinery, downstream industries are widely distributed, with the macro- economic related degree, do not worry about sub-sector cyclical problem, but because common equipment industry supporting industry, many product line width, and most of market capacity is small, thereYuantong Machinerye, need to look at whether to support specific industry sectors with large market capitalization of the company. < br> In the field of special equipment, the industry boom of the closely related with the downstream industry needs, therefore, lower demand conditions is the focus of the indicators.
In this vein, we find that machinery, the bearing industry and air conditioning accessories General equipment industry products common is strong, clear scale, more prone to large capitalization companies. coal machinery, oil drilling equipment and rail transportation equipment, and other special equipment industry is still in the downstream business cycle, accordingly, the corresponding special equipment industry investment prospects.
at the company level, the extension-type ability to grow just as important. Tianma Universal Equipment Company Share, Zongshen, and three flower power stock has shown strong development capabilities, Leo shares have begun to take this ability prospects to look forward to; in special equipment industry, technology and world economic diesel oil as their position as a strong sub-industry consolidation, will be beyond the industry’s growth.
the basis of the above study, we focused on small cap portfolio recommended machinery including Zongshen Power, Pegasus shares, Leo shares in three years the shares of China High Speed Transmission (0658.HK), the East power transmission, earth science and technology, Jinan Diesel, CSR Times Electric (3898.HK).
machinery in the small cap allocation: portfolio than stocks
machinery industry segments covering many industries, a considerable part of the sub-sector is only one listed company, and many listed companies are small-scale, therefore, despite the chance of giving birth to machinery industry , but for institutional investors, due to poor liquidity reasons, the configuration machinery industry, especially in small cap companies, is extremely difficult.
For this reason, we have many of the machinery industry to sort out small cap companies, expect to find good growth prospects at the same time the market undervalued stocks, as institutional investors in small cap recommend a combination of mechanical industry.
portfolio allocation: model portfolio allocation in the first
ideas, the need for us from the industry level since which they dump analysis, the machinery industry, divided into general equipment and special equipment, machinery industry more easily understand.
General equipment: industry characteristics determine whether big capitalization companies
equipment industry in general, downstream industries widely distributed, dependence on a single sub-sector is low, do not worry about a single downstream industry cyclical problem, and changes in macroeconomic growth is more worthy of attention, based on the 2008 macroeconomic optimism, we are optimistic about growth prospects Yuantong Machinery general equipment industry .
general equipment industry, segments very broad product line, and many single product market capacity is small, therefore, has a good breakdown of investment opportunities in the industry must support the product characteristics, big capitalization companies.
measure of a General equipment industry big market capitalization companies can depend on the breakdown of how the industry’s product versatility, coupled with the magnitude of the downstream industry. If versatility, coupled with low levels of the downstream industry, then industry will support the advantages of such companies lateral expansion can be very high concentration, large capitalization companies are likely to occur.
features from the industry point of view, bearing, power machinery and refrigeration parts and other industry segments Product versatility, including bearings and cooling accessories and more as the standard items, personalized products accounting Yuantong Machinery the low, production equipment and production lines versatility, the dominant company, with leading products in the field to the lateral expansion or merger is very easy, relatively high industry concentration.
in the gear box industry, a large number of products according to customers demand need to be customized, market-specific products in the gear box capacity in proportion to 2 / 3, and, gear box products supporting the industry with the coupling is strong, businesses need to gear box supporting industry more profound understanding of, and participation in technical design. Therefore, in the gear Xiang Xing Ye, Kua sub sector Tuozhan difficult Jiaoda, Jizhong degree Nanyidafu upgrade, market value of companies worldwide have not yet Chuxian.
Zhuanyong equipment: Xia You prospects for the industry boom of the decision to invest in special equipment
field, its demand from downstream industries, therefore, boom of the downstream industry is the primary target of our concern. From the perspective of the downstream industry, the economy, the coal industry, the Ministry of Railways Vehicles purchase of investment and oil drilling industries (CNPC, Sinopec and CNOOC exploration expenses) and other industries in 2008 still has good growth prospects, the economy will continue to enhance the degree.
General facilities: promising to expand with strong ability to support the company
big features in the industry under the premise of the market value of the company, the company’s expansion capabilities are also important, and in the horizontal expansion of the company, does have the appropriate management and cost control Yuantong Machinery capacity expansion or lateral M & A, but with the advantage of strong expansion capability is the focus of our recommended varieties.
from the current situation, Pegasus shares, Zongshen, and three flower power stock has shown a strong development capability, Leo began the initial purchase of shares, based on better management capabilities, we acquired the company’s continued optimism.
while the gear box industry, is because of the difficulty 轻松 other sub-sectors to downstream development, therefore, gear box industry much more moderate competitive landscape, industry characteristics provide advantages for the existing natural barriers, advantages compared to value the company offers investors a better chance.

Zoomlion (000 157) Chan, chairman of pure new interview recently took over the estimate, the second quarter of next year, later than in the third quarter, phosphate industry machinery manufacturing industry will usher in a new round of growth opportunity.

Baotuan winter
Zhan pure new that the housing project, measures to foster basic operations, rail roads, rural roads measures to foster basic operations, reconstruction, VAT and so on machinery manufacturing industry the most direct impact, especially in the first four of mechanical industry, selling hair products very useful. This will bring the operation of manufacturing industries produce, thus driving business from the bottom of sites out. Is today’s letters section in the moment, the various enterprises should strengthen cooperation links to Baotuan heating function. in the Joint Heavy Branch early in the month beginning this year adjustment 6,7 debt, loan structure, in September has some non-focus, non-profit project to contain a. Chim have a choice of pure faith in the new year profit will continue to add links to more than 50%.
In the backdrop of increased global market turmoil, the pure Zhan new think this Yuantong Machinery accelerated integration, promotion of internal strength brings opportunity. CIFA to the ongoing integration, he believed that at the moment Jingjixingshi less good, the equivalent of the curb market, but also in the United complete integration of the supply of a chance, wait until winter Nang Xi, the Union is the new face of the face. on the present Government is concerned, in conjunction with CIFA products business on the collaborative space is Nianye, through the process of accelerated integration, The feeling one conscious market, the joint strength will be more than a promotion.
\Market volatility in overseas M & A opportunity is also excitement, for the preparation Yuantong Machinery \difference. First of all, M & A should be associated with business growth scheme, during which prisoners do the trick or not is the main. Secondly, he thought, do not worry about differences between Western culture. tools in the cultural aspects of doing business is consistent with reality, such as standard, good faith, is different, brand, channel, efficiency of domestic and Yuantong Machineryeign enterprises are the same, no difference. Third, the length of the acquired company’s team of regular major.
Policy choices in the business, he believes that both sides must be interconnected channels, to information systems, producing organizations to deploy, made selling platform, the unified development platYuantong Machinerym. In addition, the acquired business is not less than a gram too strong capacity to avoid unnecessary labor struggle. For the acquisition of complementary business unit level differences between the new pure Chan described as \Both style through the process, companies can achieve the optimal capital and produced elements, which promoted competitiveness, speed up the process of globalization.
And further overseas expansion
Chan Chun-Xin said that United had a perfect cross-country is a Ministry of Construction and operation of RBI wonderful team. In the United Fang overseas revenue 18% higher than in the manipulation, nothing more than some division of the income share has reached 40%. Followed by two-way integration deep, in conjunction will produce the relevant staff to do more Nianye line and the size of the deployment, he was invaluable to the whole Union in 2010 in the proportion of overseas revenue will reach 40% by 2015 this will rise to 60%.
For next year, the overall profit enterprises to add charm Yi, Chan suggests very choice of pure new faith, he believes that by 16 years of growth, Zoomlion compound annual increase rate of 60% across the future will also link the trend. Eras, the Union scale of business has been radiation to South America, North Africa, the Middle East, Southeast Asia, Russia, Eastern Europe, the United Kingdom area

recent years, the rapid development of China’s machinery and equipment manufacturing industry, to break a lot of international technical monopoly in the international market share improved. China is becoming the important base for manufacturing bases, whether mechanical or other manufactured product itself needs industry will foster the sustainable development of China’s machinery industry. \; two tax merger \market extends to both ends of the main services in China’s machinery industry, China’s urban market, has obvious periodicity. But after 2004, macro regulation and control of listed companies to the market to invest in international markets, sub-sectors leading the company’s rapid export growth. The \January 5 \Global Vision attention and investment in China machinery industry in 2007, we recommend focus on cyclical industries and enterprises revaluations in the revitalization of equipment-related policies that may significantly benefit the company, \as well as major state projects of Shi Shi Yuantong Machinery mechanical industry to bring investment opportunities. We Jianyigaoduo Guanzhujuyou be the Global leader and international market development potential of the company. Chinese Railway Jinlai speed frequent, rail and construction Dedao ringing endorsement, according to the Ministry of Railways said, \. then, developed rail network will take shape. According to statistics, the national railway passenger traffic volume is expected to reach 1.184 billion trips, of which 1.132 billion national rail passengers; the national railway of the goods sent are expected to reach 2.8 billion tons, of which the national railway 2.4 billion tons. compared to last year, incremental large.
First, China’s railway construction industry, equipment manufacturing and the stage of development
1.2006-year industry growth is stable, restorative stages of equipment products is a typical investment goods, the market demand was obvious fluctuations. Cyclicality of the industry is the development of the national economy has a strong positive correlation between the stability of the national economy growth is the equipment to ensure the steady development of the industry.
2006 general industry trend of better run, 1-September, the industry total industrial output value, industrial added value and total profit made about 30% -40% growth over the same period in 2005 the level has been significantly improved, especially Profit growth is substantial growth, from approximately the same over the same period in 2005 increased to 40%, showing a significant overall recovery indications, the growth rate of over 30% have engineering machinery, electrical appliances, machine tools and basic pieces of general , farm machinery, heavy mining, petrochemical, general, automobile and higher growth rate, growth rate is lower cultural office and internal combustion engine, the growth rate below 20%.
2. The sub-sectors at different stages of the downstream equipment manufacturing sub sector trends, technical content and other different industries in which different life-cycle.
Overall, aerospace, machine tool industries in the early growth stage, port machinery, textile machinery in the growth stage of the advanced stage.
3. Rely heavily on high-end technologies and products developed
Precision equipment, automation, quality, stability, flexibility, power, size, the age and other indicators of technical content and the key grade of products, is also a product profitability determinants.
From the current situation, and equipment manufacturing industry Zhong high technological content, the high profitability Neng Li Qiang Ji Benshang technology and products developed by the Europe and the United States on Deng Zhang Wo, Xing Cheng oligopoly, Er middle and low Chanpin 集中 in developing countries, technology low barriers to form a low degree of industry concentration, intense competition, lower profitability situation.
Second, the next two years the main factors affecting the industry
We believe that the next two years, the main external factors that affect the industry include:
1. Macroeconomic growth; 2. The national development strategy and industrial policy; 3. Global industrial transfer trend of Yuantong Machineryeign mergers and anti-M; 4. RMB appreciation factor;
1. Macroeconomic growth: the basic factors which influence the demand for the main point – the macroeconomic growth has begun to fall, the future introduction of stringent control measures are unlikely. The next two years will maintain rapid macroeconomic growth, which support the rapid growth of the foundation equipment industry. [Page]
Since 2006, the effect of macro-control is gradually revealed, the first major economic indicators in Q3 than in Q2, a marked decline, is expected to introduce stringent control measures in the future is unlikely.
3rd quarter 2006 GDP, industrial value added and fixed assets investment growth, while the chain down, but still reached 10.4%, 16.2% and 24.2% of the higher level are not expected to decline sharply, which is equipment manufacturing industry, an important foundation Yuantong Machinery rapid growth.
2. National development strategies and industrial policies: impact on market share, industry restructuring, technological progress and the preferential policies of major perspectives – countries to improve their equipment inside the policy of self-grouped into four areas: accelerating the pace of import substitution, increased domestic high-end market share; encourage industry consolidation, and support leading enterprises bigger and stronger; encourage enterprises to accelerate the technological upgrading; the use of fiscal and financial policies to support industry development.
Formulated by the state in 2005, \Outline \to meet the industrial, energy, transportation, defense and other needs \On this basis, the relevant ministries began to promulgate policies and related rules, will increase China’s equipment manufacturing industry in the domestic market share and nurture a large dominant enterprises, fiscal and taxation policies to support technological progress and gained substantial benefits.
We believe that these policy measures will enable equipment manufacturers to enter the historical stage of development during this period, policy support will be an important impetus for development of the industry.
To import substitution, for example, the current monetary value of imported machinery industry each year more than the 100 billion U.S. dollars, and industry-wide gross domestic product ratio of about 1:3, in which the focus of national and local projects are important users of imported products. This shows that If the key projects to implement the policy of home-made equipment, domestic equipment market share will have higher growth.
3. Under the trend of global industrial transfer and anti-M & M major points: the international large companies on the domestic enterprises 收购, although the development of enterprises drew support but unfavorable industry 自主 of the state of the restrictions this Shishi policy, contribute to independent of industry in the healthy development of the premise.
Transfer in the global manufacturing trend, international large-scale equipment, the company introduced a new competitive strategy, they use money advantage, through the acquisition of control of domestic industry leader, and the elimination of the domestic company’s brand and research and development, thereby limiting the domestic enterprises growth rate and growth potential, enhancing their competitive advantage.
As the large Yuantong Machineryeign companies in the technology and capital in a strong position on, so in the current international competition, China’s equipment manufacturing business in a very vulnerable situation. Nearly two years, a number of leading equipment manufacturing companies have been or will be adopted by multinational companies joint venture, merger and acquisition control, the main case are as follows:
We believe that foreign companies for domestic equipment manufacturing leading the acquisition, the acquired business will bring new impetus to the development, enterprise product structure, asset quality, profitability, and so will be significantly improved. But the whole industry in the coming year, foreign capital for leading enterprises to control, will eliminate the competitiveness of domestic enterprises is not conducive to the autonomy of equipment manufacturing, the overall development of the industry is detrimental.
Since 2006, the relevant state authorities attach great importance to the Ministry of Commerce and other six ministries promulgated the \domestic enterprises shall not cause excessive concentration, eliminate or limit competition, or disrupt social economic order and harm the public interest; the Ministry of Commerce on foreign mergers and acquisitions have the right to antitrust review; acquisition of domestic enterprises and foreign investors to obtain effective control, involving key industries, affect or may affect the existence of national economic security, or resulted from having a well-known trademark or China and famous domestic enterprises the right to transfer effective control of, the parties should be declared.
4. RMB appreciation: impact of the international competitiveness of products the main points: the yuan’s appreciation will increase the export costs of equipment, affect the international competitiveness of Chinese products and the export growth rate.
Since July 2005, the RMB exchange rate has been the rise of the dollar has risen about 5%.
RMB appreciation China’s export commodities prices led inevitably to a certain extent, affected the growth rate of China’s merchandise exports.
3. Construction Machinery – carefully grasp the export and investment opportunities brought by M & Construction Machinery Industry Investment Opportunities, \The development of the market is facing some uncertain factors, but accelerated in the urban development, infrastructure Sheshi construction investment continued to grow as well as national key projects of the driven and engineering machinery demand will remain relatively stable in the growth.

2010 Machinery Industry sales growth is expected to reach 15%, profit growth is expected to reach 10%, export growth is expected to reach 15%. In China Machinery Industry Federation recently held a general meeting of the third second, the United executive vice president of aircraft but Ci Cai machinery industry in 2010 to the latest key economic indicators Yuantong Machineryecast.
2009, China’s industrial added value grew machinery 13.8%, GDP growth rate reached 16.07%, machinery industry has maintained relatively stable rapid growth. However, structural adjustment, and major equipment compared to the results of independent innovation, \growth compared to industry growth prospects for steady long-term sustainability is not encouraging. Thus, CAI Wei-Chi forecast to run China’s machinery industry in 2010 will show a trend from high to low.
restructuring effective innovation fruitful
from 2009 In view of operational characteristics of China’s machinery industry, equipment manufacturing and automotive industry restructuring and revitalization of the gradual release effect of policy implementation, the effects of policies to support key industries, particularly significant, agricultural machinery and the automotive industry rebounded in the policy support faster than other industries, particularly the automotive industry, machinery industry growth in 2009 to become the \br> 2008 in the second half to May 2009, China’s machinery industry output value of new products, industrial output growth has been lower than the same period. Since June 2009, the higher the monthly growth rate of new products, annual output value of new products year on year growth of 23.74 percent, industrial output growth has been higher than the same period. show that the industry’s technological progress driven by demand in the market to become more active again.
from the basic machinery industries, the decline of various industries in the same time, structural optimization showing highlights: According to the machine tool industry statistics 197 key enterprises, 1 September 2009, metal processing machine tool numerical control rate output increased by 6 percentage points year on year, reaching 53.6%; metal cutting machine tools production fell 30.6%, but the average unit price increase 34%; CNC machine tool production decreased 13.8%, unit price increased by 21%. Moreover, the decline in production of CNC machine tools is much smaller than ordinary machine tools, CNC machine tools in high-grade reduction in output is smaller than economic machine tool, thus machine tools can be seen clearly in the upgrade momentum.
At the same time, and energy saving-oriented product structure adjustment has made great progress .1.6 l and the following low-emission passenger vehicles annual sales of 7,195,500 total vehicles, up 71% over the previous year, accounting for 70% of the total passenger car sales over the previous year by nearly 8 percentage points, on the contribution of the automotive market growth of 70%; wind power generation equipment and a new DC power transmission equipment double the growth of energy production equipment, medium and large horsepower tractors, the rapid and efficient growth of agricultural equipment; efforts to contribute to energy conservation has become an industry-wide consensus on this important orientation of product structure adjustment is more and more enterprises attach great importance.
cope with the international financial crisis, the machinery industry enterprises have increased their R & D investment, more emphasis on endogenous development to enhance the level.
2009, China’s independent innovation and high-end equipment fruitful. Among them, the living standard of the world’s leading UHV AC test equipment in the safe operation of model line has been a year, key equipment UHVDC successful operation was the end of 2009, 300,000 kilowatts and above accounted for a large thermal power output of thermal power output rose from 80.8 2008 % to 82%; independently developed large-scale open pit mine 220 tons of used electric wheel dump truck was completed in 2009 identified; million tons of ethylene required Yuantong Machinery three main compressors and multi-stream low-temperature cold box successful development of domestic natural gas pipeline compressor and valve finally natural gas development contract to implement Phase II Project; 1080 tons and 500 tons crawler crane all terrain crane construction machinery and other large developed; high-grade CNC machine tools and basic manufacturing equipment to achieve national implementation of major projects progress, ranking the world’s largest listed specifications boring bar diameter of 320 mm, floor boring and milling machine developed; 36,000 tons of ferrous metals vertical extruder developed.
Enthusiasm was not coordinated growth in all sectors
trend analysis of the current domestic and international situation and the development of the industry status quo, but Tzu Tsai said, the total demand in 2010 despite steadily machinery industry, but industry-wide productivity growth too fast, so competition will be more intense competitive pressures felt by companies will continue to increase; the entire industry based on sales volume will continue steady growth over the previous year, but by the impact of excessive competition and efficiency may be lower than the growth rate of sales; in 2010 will be the beginning of a relatively higher growth may even be higher than 50%, but then will gradually decline, the annual growth rate curve will show a clear trend from high to low.
Based on the above analysis, CAI Wei-Chi made on the sub-industry Yuantong Machineryecast. Among them, the agricultural machinery Industry: Agricultural policies continue to buy good demand in the country under the influence is expected to remain at high levels, but growth slowing down than the previous year, sales are expected to grow 10% ~ 15%.
machinery: the growth rate of high and then low, about 10% of the year is expected to achieve moderate growth, the various main products is expected to reduce the gap between the Enthusiasm.
electrical industry: domestic demand continued to decline conventional power generation equipment, but still essential to maintain the original order In normal production, expected next year after that will usher in a serious shortage of grim task test; in the future the proportion of exports in total output will increase; Casting and supply of power plant is expected to slow down contradictions; wind power and nuclear power and other new energy equipment and industrial and mining electrical equipment Demand is expected to increase; transmission and distribution equipment due to excessive capacity expansion and network growth rate of investment is limited, the competition in 2010 will significantly increase. the whole industry is expected to grow by about 12%.
heavy mining machinery: metallurgy and metal rolling equipment system equipment needs to sluggish demand for mining equipment, mining and washing of coal is expected to remain stable, and Forging with the thermal processing technology breakthroughs and marked improvement in key equipment, production capacity is rapidly expanding volume of import substitution will be significantly increased. the whole industry sales expected to grow 5% ~ 10%.
general petrochemical equipment: machine and the tower tank valve and general equipment such as petrochemical demand is expected to maintain stable growth, especially in nuclear power, natural gas, liquefied natural gas long-distance pipelines and installations needed high-end product innovation breakthrough will have broad prospects for development. the whole industry sales expected to grow by about 15%.
machine tool industry: the large aircraft and the special needs of nuclear power and other major scientific and technological support, the high-end CNC machine tools and heavy machine tools production situation will remain in good condition, all special plane to meet user requirements and green have a broad space for development, growth in new orders for heavy-duty machine tools is expected to slow down, there is no basis for the proposed business should not blindly enter.
automotive industry : acquisition of a small displacement of 1.6 liters and below half the cars preferential policies, but policy efYuantong Machineryts to encourage TM to increase; the development of China’s auto market is still much room for second-tier automotive market is to expand the following cities and rural extension, the overall Demand will continue to grow, but the growth momentum will be slowed down during the year, is expected to grow about 10%.
Instruments: energy-saving environmental monitoring equipment, people’s livelihood with instrumentation, process measurement and control of industrial use in high-end equipment, factory automation equipment, with monitoring growing relatively fast, the whole industry is expected to grow about 11%.
culture and office equipment: to maintain the warming trend at the end of the year is expected to grow about 10%.
hydraulic, pneumatic, seals, fasteners, gear , bearings and other basic pieces of the industry: is expected to grow about 10%.
Engine: Estimated production growth of 6%, which, automotive and engineering machinery, agricultural growth of about 10% with the engine, low-speed trucks, small tractors, irrigation and drainage, generator growth of 6% with the engine, small gasoline engines up about 3.5%.
Optics Valley of Education and Training No. 1 brand in China CNC Mold http://www. ggjy.org.cn reproduced please specify

EOD robot is EOD unit. It includes the mechanical hand, arm, weight, battery box and control devices; arm stitched together by the hollow boom, manipulator arm fixed at one end, the other arm Set one end of a counterweight. control device settings have to open and close control. The model is simple, easy to operate, can control the opening and closing of the manipulator, combined with LED display to achieve accurate robot operation. The model is applied to deal with dangerous explosives It is suitable Yuantong Machinery public security, fire and explosion proof units.
Details:
Electrical control manipulator ZHANG
Front-end robot can rotate 360 degrees manual
Height adjustable stand with casters can lock
Infrared night vision cameras and LCD monitors, can operate at night
Assembled to carry / easy to assemble, light weight
EOD bar are weighing about 10kg;
High strength lightweight carbon fiber materials; can clamp around the weight 20 kg (similar product to 3.5 kg);
About 3 minutes to complete assembly;
Length of 4.2 meters;
Power grasping, safe and reliable
DIP switches to be completed by grasping and / or transfer actions;
Speed stability, high safety;
Built-in rechargeable battery efficient, can work Yuantong Machinery 5 hours;
Adjustable angle of the hand can be inserted into the explosion-proof tank;
Fixture Yuantong Machinery different objectives may change at any time
With the visual system, convenient and reliable disposal of explosives
420 line high resolution CCD camera and LCD screen, the operator can observe the disposition of property at any time the situation
With infrared night vision function; LCD screen with anti-glare function can operate in bright light outdoors
Name:
Electric EOD mechanical lever
ID:
B-006
Model:
JXS-D
Location:
China
Description:
The mechanical lever used to exclude electric EOD explosives and dangerous goods, you can grab or hook to take a suspicious object exploded. The long arm is equipped with straps, which can be Kua in the shoulder, away from the dangerous goods to 2.5 meters to 3.5 meters EOD operation. the long arm from the carbon fiber is made of high strength with light weight advantage. you’re done you can shrink into a 1.35 m pole easy to carry and store.

three of the industry to judge the future trends
Based on the above analysis of the major factors, we are equipped with the industry development trend of the next two years as general judgment:
1. Industry as a whole will maintain a 20%
Growth rate of over industrialization, China is currently in accelerated phase of development, equipment manufacture Mianlin better for the environment. Genju in recent years, data shows that, Zai GDP growth of not less than 8% of cases, machinery industry Zeng Changshuai basically maintained not less than 20% level. the next two years, in anticipation of the domestic economic growth of 9% of the cases, the machinery industry’s growth rate will be not less than 20% level.
2. Exports faced unfavorable factors, it is expected that not less than 20 percent growth rate in recent years, As China’s manufacturing industry has significant cost advantages, have the best of the industrial base, coupled with the effects of WTO of China, China’s equipment manufacturing industry present situation of rapid development of exports, in 2003 and 2004, the export growth of machinery industry, about 50% since the high level of .2005, as the base expanded, intensified international competition and the appreciation of the renminbi and other factors, the industry’s export growth rate from high down to 25% -30% level.
The next two years, the yuan continues to appreciate, as well as the equipment manufacturing industry increased production costs slow under the impact of China’s equipment manufacturing industry exports will be adversely affected. But we believe that our equipment manufacturing industry average of 30% -40% of the cost advantage the next 2 years will be no fundamental change in the cost advantage, so the next 2-3 years, the export of the equipment manufacturing industry will remain more than 20% growth in the overall development of the industry will have a greater negative impact.

3. Strategic focus to high-growth industry, \strategic focus on policies to support the industry. the strategic focus of the industry mainly refers to: first, national security, the national integrated power directly related to the industry; second, downstream is the country’s pillar industries of industry type; 3 is the bottleneck of economic development industry .
\(1) large clean and efficient power generation equipment; (2) high voltage transmission equipment; (3) large-scale ethylene project equipment; (4) large-scale coal-chemical equipment; (5) large plate and hot and cold rolling and coating equipment processing equipment; (6) the development of large-scale integrated coal underground mining, upgrading, and washing equipment and a large open pit mine equipment; (7) large-scale offshore oil engineering equipment, large high-tech and high value-added vessels such as high-power diesel engines; (8) to master more than 200 kilometers per hour high speed train, new subway cars and other core technologies and equipment; (9) the development of air control, urban and industrial wastewater treatment and other large environmental protection equipment, and resource utilization equipment; (10) large TBM and other large construction Mechanical Development; (11) major projects in the development of automatic control systems and critical precision measurement equipment; (12) the development of large, sophisticated, high-speed CNC equipment and numerical control systems and functional components; (13) the development of new textile machinery, complete sets of key equipment on the new technology research and industrialization; (14) the development of new, high-powered agricultural equipment; (15) the development of integrated circuit critical equipment, electronic component manufacturing equipment, pharmaceutical production equipment, etc.; (16) the development of civil aircraft and engines, airborne equipment.
The strategic focus on industry’s future investment and policy support in the country under the influence of technological progress, product upgrades will be faster than other industries, the growth rate of the industry will maintain a high level, including military products and we expect the growth rate of railway equipment will not be less than 25% -30%.
4. Industry merger integration accelerated, leading the development of our country’s ultra-conventional equipment manufacturing industry concentration is low, few large enterprises within the industry, which is highly competitive industry, technological progress, slower, enterprise comprehensive strength is not strong, profitable ability is not one of the reasons.
In the \with strong comprehensive strength of large enterprise groups, so that the entire industry concentration, profitability, international competitiveness and risk-resisting ability will be greatly improved.
Meanwhile, foreign and domestic anti-M & M game, we think that the future trend is: the one hand, foreign acquisition of domestic enterprises will become more rational and well-intentioned, is conducive to long-term development of domestic companies, on the other hand, countries are encouraged the advantage of domestic enterprises in the same industry or cross-mergers, bigger and stronger as soon as possible. to reduce the scope of Yuantong Machineryeign acquisitions.
Considering the national industrial planning and the impact of foreign mergers and acquisitions, we believe that the next 2-3 years, the domestic equipment manufacturing industry will continue to happen in the industry consolidation and M & A, industry leading companies will take advantage of this trend to achieve extraordinary expansion , asset size and market share will rapidly become the biggest beneficiary.
5. Technology upgrade and import substitution to leading the company rapid development of technological progress is the basic equipment manufacturing industry, the country’s future is an important way to support the industry. In the actual implementation of policies, the state must rely on technological progress to support the specific focus of the project and enterprises, so the next few years the industry leading companies will use the policy to support the opportunity to invest in fewer cases to achieve technological progress. to achieve enterprise product upgrades, and improving profitability.
At the same time, import substitution will also help improve the company’s profitability. Because the basic is the high-end imported products with higher added value products and core components to improve product independently of the national context, more technologically advanced products leading the company’s high-end will be gradually adopted by domestic users, the company’s market share and profitability will be significantly increased. China’s import and domestic production of market share and profits following comparison:
Fourth, industry investment opportunities and investment strategies of
1. Equipment industry we are optimistic about the overall equipment investment strategy for the next two years, the growth of industry trends and strategic development opportunities facing the industry, according to previous analysis, we believe that investment opportunities in the equipment manufacturing industry mainly includes three aspects:
First, the State encourages the equipment to upgrade and improve the localization, independent of the level of the system brought about the opportunity. In the \profitability and market prospects will benefit.
Second, M & A and restructuring of the industry brings opportunities for asset revaluation. The one hand, foreign investment on domestic equipment manufacturing industry leaders eyeing constantly looking for acquisition targets; on the one hand, the national industrial policy and competition driven, and equipment industry M & A and restructuring within the trend is inevitable, a listed company in the capital market with its own special advantages, usually within a group of assets and acquisition integration of external assets of the optimal platform.
Third, the value of growth opportunities for the industry. Macroeconomics industry growth, especially in some high growth downstream sectors of the endogenous value of investment opportunities.
From an investment point of view how to take the chance? Our views as follows:
Since 2006, the equipment manufacturing industry investment value of listed companies has been relatively under-exploited, according to the market price-earnings ratio basis, the better the performance average of 15-20 times the company’s price-earnings ratio, and the international market valuation with the same industry. We that the current price-earnings ratio of around 15-20 is reasonable, the next two years will be essential to maintain the current level PE, key companies in the industry, operating results continue to rise, a listed company’s share price will have increased space, is expected to rise between 20% -30%.
The next two years, state support for the equipment manufacturing industry will enter a substantive stage, the industry’s merger integration will be the new emerging hot spots, which will bring more theme-based industries and value-based investment opportunities in the revaluation, related to the company’s investment value will appear Leap growth, which will be the equipment manufacturing industry in 2007 increased the value of the important driving force for investment.
Based on the above analysis, we offer equipment industry as a whole \The first main business area with major support from leading national companies, such companies operating results in 2007 and 2008 after growth prospects may be better than expected.
Second, there are Yuantong Machineryeign acquisitions or asset restructuring (including the acquisition of parent company assets) is expected to listed companies, such company’s operating results will substantially upgrade the value of assets will also face re-assessment.
Third, the industry will continue to grow or face recovery company.
Fourth, clear the next 2-3 years growth, PEG companies lower.
2. Machine tool industry – the industrial upgrading and restructuring the industry to bring investment opportunities investment opportunities in the machine tool industry the next 2 years, the machine tool industry’s investment opportunities mainly in two aspects: first, to raise the level of NC and bring opportunities for industrial upgrading; 2 is the machine tool industry M & A opportunities.
(1) raise the level of NC as the direction of industrial upgrading, CNC machine tools industry is the development direction, but the technical level of China’s NC Machine Tool disparity with international standards.
China CNC Machine Tool company in the product design level, quality, accuracy, performance, etc., compared with foreign advanced level behind the 5-10 years; in high precision and advanced technology gap is reached 10-15 years. Domestic machine tool the main difference between the industry’s technology to the digital control system and the differences in features, the domestic high-end CNC machine tools and ball screw, high speed spindle, tool robot, such as full-featured CNC turret features more than 80% of imports, Germany’s Siemens (SIMENS) and the Japanese law that g (FANUC) the two companies largely dominate the Chinese market, the supply of high-grade digital control system. [Page]
China is at an important period of accelerated development of heavy industry, automobiles and auto parts, national defense, aerospace, shipbuilding and other industries to the rapid development of these industries on the demand Yuantong Machinery larger and medium-sized CNC machine tools, CNC machine tools expected future demand growth. As the machine tool industry while supporting the policy of the national introduction of CNC machine tools will be the formation of domestic support, the next 5 years, the number of CNC machine tools and quality improvement will be the main development direction of the machine tool industry.
\the current 30% to 60%.
(2) The machine tool industry M & A opportunities to state clearly support the M & A machine to raise industrial concentration degree and enhance the international competitiveness of the industry, according to the \industrial base and 10 base features industry base.
The current state of development the industry, we believe that M & A machine tool business there are two main ways: First, domestic mergers and acquisitions, such as Shaanxi Qinchuan Machine Tool Group’s restructuring, such integration can either extend the industrial chain business, but also into a line of matching supply can enhance the ability of the machine tool industry and functional complementarity between the components, so the next few years will be the machine tool industry trends. Second, the expansion of large enterprise groups abroad, now Dalian Machine Tool, Shenyang Machine Tool and Qin River development has taken the pace of foreign acquisitions, we believe that the implementation of the harbor the next machine tool industry merger, is conducive to market complementary technologies complement each other and establish an international brand, it will be the only way Yuantong Machinery the development of large enterprises.
Machine tool industry, machine tool industry’s overall investment strategy rating of \level of scale and operational side, the Shenyang Machine Tool and Qinchuan the future development of the two companies enjoy the benefits of industry growth, the next two years, the average annual growth rate of 30% or more, the proposed focus.
Jiaotong University Science and Technology, Qinghai China Ting and ST aspect 3 is present in the general situation, the future integration of resources if carried out, will help the company faster access to the stage of rapid development, we believe these companies for investment opportunities to a large extent depends on reorganization, which has been by the Shenyang Machine Tool Technology National Chiao Tung University to implement restructuring should focus on.

Bearing Industry Association, according to 2006 statistics, the scale of China’s bearing industry for more than 1205 companies, industry concentration of the top 10 only 22.43 percent, an average of 2.243 percent each of the market, the top 30 only 32.97 percent of market concentration, the average Each 1.099% of market share, industry concentration can be quite low. to currently available for several bearing manufacturers, for example, the industry’s leading enterprise Wafangdian Bearing Group, the industry accounted for only 2.46% of market share, production car Bearing universal money flows accounted for 1.9% of market share, 10% of the whole, not to.
Private and foreign-funded enterprises are the main Yuantong Machineryce in the industry
Private sector is the main force of China’s bearing industry, private sector income in 2007 accounted for about 44.5% of total industry revenue, followed by foreign-funded enterprises accounted for 26.51%, while the state-owned enterprises and collective enterprises together accounted for only 11.18% of the market. If profits Diameter accounting, private accounting for as high as 53.75%, accounted for more than half of industry profit, also accounted for 25.94 percent foreign, state-owned enterprises and collective enterprises accounted for only 5% of industry profits. multinationals in foreign countries, have been gradually established in China the 24 finished bearing manufacturers, with consolidated total investment of about 400 million ~ 500 million U.S. dollars, has been formed 800 million ~ 900 million sets of bearing capacity.
China’s bearing industry in Zhejiang Province is the largest province, China’s bearing industry is mainly concentrated in eastern China as the representative of the private and foreign enterprises as well as the Northeast region of the state represented by the traditional heavy industry base. In the top 30 in the bearing industry in China, located in East China The enterprises include the universal tide of money Co., Ltd., one of the Group Ltd., Pegasus Holding Group Co., Ltd., Shanghai Prime Machinery Co., Ltd., Ningbomoshi Group Co., Ltd., Zhejiang Wuzhou New Year Group Co., Ltd., Jiangsu Xin Source Bearing Company Limited, Jiangsu Power Star Ball Co., Ltd, Tin Shing Bearing Corporation, Chi Hing Holdings Limited, Central Chi Group Co., Ltd., Zhejiang Fuda Bearing Co., Ltd., Ningbo larger Group Co., Ltd., Zhangjiagang AAA Bearing Co. company, Zhejiang Jiang Dingli Holding Group Co., Ltd., Zhejiang Xinchang Peel Bearings Co., Ltd., Changshu Great Wall Bearing Co., Ltd., Shanghai Bearing (Group) Co., Ltd., accounted Yuantong Machinery 30 strong 18. in the Northeast Harbin Bearing Group Company is a major enterprise , Jilin Bearing Group Co., Ltd., Wafangdian Bearing Group Dalian Metallurgical Bearing Group Corporation, represented by state-owned enterprises, of which Kazakhstan is China ZWZ bearing axis and the two leading industry companies.
Industry dispersion, backward technology led to lower profit margins
February 2008 bearing scale enterprises in China up to 1646, nearly 300 at a loss. We measure the bearing industry in China in 2007 the average gross margin of about 14.3%, the average ROE was 2.38%, much lower than listed companies水平. In the five A-share listed companies, Pegasus shares in gross margin and ROE are the first in the world appears to its gross profit margin is very high. to ROE target, China’s enterprises and Sweden’s SKF and Germany’s FAG the gap is still the world’s leading enterprises such as the more obvious.
In addition to Pegasus shares, Longxi shares with its monopoly position on the joint bearing also has up to 34.46% of the gross margins, research and technology with Axis technology advantages, its gross margin as high as 31.8%. It is worth mentioning that, although China Enterprise gross margin bearing high bearing enterprises in Japan, but the fundamental rather lack of ROE targets, indicating the operating efficiency of Chinese enterprises still need to be improved.
Another consequence of the lack of leadership is the loss of upstream pricing
Distributed over the bearing industry to allow the industry the ability to withstand weaker upstream raw materials, lack of discourse on the upper right. Bearing the main raw material in China GCr15 100mm (back) and GCr15 50mm (hot) two kinds of bearing steel prices since last December has been substantially increase. As of April GCr1550mm (hot) bearing steel prices more than in 6500, up from a year earlier about 50%; GCr15 100mm (back)-type bearing steel average price has reached 8,000 yuan / ton, up 40% year on year.
Bearing steel prices listed companies have started to be reflected in a quarterly Pegasus shares, shares and Xiangyang bearing Longxi both year on year decline in gross margin, operating costs accounted for the proportion of sales revenue increased by 3.73%, respectively, 2.29%, 9.57%. However, there are still some companies have the advantage and shift the cost side, such as axis, with its product technology research and technological advantages to maintain stability margin; first-quarter net profit margin fell 2.64 percent year on year the main reason is that Tai Fu provision for the impairment losses are not on the problems pertaining to the operation. bearing the northwest, with its mechanical bearings in oil, metallurgical rolling mill bearings and other popular products on the market Youshi successful transformation of the upward pressure on its gross profit margin increased by 2.36% year on year. However, due to VAT refund Tongbidafu reduction and reorganization in 2007 brought increased profits over the same period one-time base, in 2008 first quarter operating income decreased significantly year on year, making the company net profit margin fell 7.39%.
In all five listed companies, the net rate of increase in shares and Xiangyang bearing Longxi only two companies. Longxi shares better cost control, and benefit from the implementation of the new income tax law, the company reduced the original tax rate of 33% to 25% , and the resulting gain of about 90 million. Xiangyang bearing in the first quarter net profit rate to maintain a stable reduction of Daye Special Steel was the main reason is that investment income 19,696,500 yuan and the reversal of deferred income tax liabilities 7,585,800 yuan , making the company an increasing cost for the next quarter net profit margin is still maintained relative stability. We expect raw material, labor costs and other factors in the second quarter reflects a further major factor affecting performance of the company.
Policy guidance highlights the industry consolidation and upgrade
Eleventh Five Year Plan aims to promote the consolidation and upgrade
According to China’s bearing industry Eleventh Five Year Plan target to 2010, bearing the entire industry output will reach 80 million units, up 15 thousand kinds of product varieties sales 84 billion yuan, 25.2 billion yuan of industrial added value, overall labor productivity of 55 thousand yuan / person , energy consumption per unit of industrial added value lower than 20% in 2005, comprehensive utilization of raw materials increased more than 5 percentage points in 2005, China’s bearing industry sales .2007 has reached 72.0 billion dollars in 2008 we can be ahead of schedule 11 five development goals, but need to further reduce energy consumption.
Implementation of the large group, small giant German development ideas, training 2 or 3 or more and annual sales of five billion yuan with annual sales of 10 billion yuan in 10 major group companies, 20 products have characteristics, with annual sales of more than 300 million yuan The \more than 60%.
In the product structure adjustment and optimization of multi-level to meet the market demand for the formation of various end products and reasonable allocation of the product structure, which accounts for about 20% of high-end products; mid-range products accounted for about 50%; ordinary products accounts for about 30%. Host matching rate 90%. part of the business part of the product to reach the level of international competitiveness of enterprises.
Policy support to accelerate industry upgrade stabilize cyclical fluctuations
Policy-oriented role in guiding capital to invest in the bearing industry focus areas, will be able to drive the industry to high-precision bearings, high-tech and high value-added products tilted, through introduction of technology absorption as well as trade protection of domestic enterprises, will contribute to the bearing industry Sheng Ji. We believe that Suiran bearing industry in the short term will be raw material prices, labor Chengben rising appreciation of the Renminbi factors affect, but is precisely these negative factors will Cushi bearing industry upgrades in technology also Congjiao Chang’s point of view Eryan China bearing demand driven industry under the host, the industry will accelerate the pace of upgrading and integration.
Bearing industry growth will be the national macro-control and economic cycles, we believe that the whole bearing industry will be subject to credit policy and economic cycles fluctuate, but we think that the bearing industry segments are expected to stabilize the help of policy cyclical fluctuations, coupled with industry consolidation and technological upgrades to bring the content-type growth will weaken the impact of economic cycles, industry policy and credit, the investment cycle will intensify segments degree of differentiation of the economy, we are optimistic about the industry on behalf of high bearing precision, high-tech and high value-added bearing products.
Credit and investment cycles and policies tend to make sub-industry boom of differentiation
Domestic market demand by type of main types of host matching the needs and demand Yuantong Machinery machinery maintenance; bearing demand by industry mainly from:
Appliances bearing (21.89%, according to the number of demand-caliber, the same below), auto bearing (20.01%), motor bearing (16.3%), motorcycle bearing (11.4%), agricultural machinery bearings (4.25%), Construction (2.08%) , Textile Machinery (0.95%), mining (0.8%) and rail bearings (0.1%) and other. It is worth mentioning that, although the number of metallurgical and mining and railway bearing demand accounting for small, but their needs are mostly heavy , large bearings, bearing a single set of high prices, so if its proportion calculated aperture value, the ratio will be much. Therefore, we follow the method of calculation value of the relative importance of several downstream industry demand, namely, the automotive industry, heavy industry bearings (mainly machinery bearings, bearing metallurgical mines, petrochemical bearings, railway bearings) and the other bearing (mainly home appliances bearings, motorcycle bearings, agricultural bearings, motor bearings), and finally we discuss the bearing import and export.
Automotive industry is a typical cyclical industry, the investment-driven nature is very obvious, because most Chinese enterprises from investment funds, bank credit, the bank’s credit growth and output growth related automotive industry is very clear, which makes our The automotive industry a great influence by macro-control policies.
Contraction since the second half of 2007 to liquidity, reduced bank credit and fixed asset investment policy of macro-control capacity will be expanded to the automotive industry, adversely affected. We expect China’s auto production growth the next two years will continue to decline in 2007 trend growth rate of around 17.5% and 12.5% to reach 11.748 million in 2009. the average car takes about 60-65 sets of each bearing (this data includes the maintenance and renovation needs) This represents our country in 2008 cars demand Yuantong Machinery bearing industry was 6.3-6.8 million units, in 2009 demand was about 7-7.6 million units bearing.
Railway Bearing: to benefit from high-iron, the rising demand for upgrading heavy
Railway locomotive bearing including bearings, railway bearings and railway passenger vehicles bearing three parts. There are two types of Chinese-made locomotives, the diesel and electric locomotives. Railway locomotive bearing on the special 123 species, of which E-class, D-level accounting 93, a cylindrical roller bearings and angular contact ball bearings, such as locomotive axle box bearing 972832QT, 552732QT; for traction motors, main generator bearings 4G32426QT, 4G32332EQT, 4G32330EQT, bearings for transmission 3D3032938QT, 3D32123QT , 3D32228EQT, 3D1176938QT, 3EI76144QT so. railway bearing demand mainly comes from the upgrading of railway equipment and railway mileage increased.
Growth rate over the years from our railway mileage has hovered at between 0.5-1.5%, turnover of China Railway completed 25% of the world’s railways, but the mileage of railways in operation account for only 6% of the world’s railways. Issued in 2004, according to China \long-term railway network plan, \According to China’s Ministry of Railways in 2007 Bulletin of Statistics data published in 2007, motorcycle ownership in China has reached 18,300, the 2010 target is to reach 19,000, bus ownership in 44 300, 11 5 target is 45,000, holdings is 56,850 trucks, 11 five-goal is 70,000, which means not a lot of additional rail equipment, although we think that the Eleventh Five goals to the current development rate, it is extremely conservative. from the purchase of rolling stock amount to complete the circumstances, 2006,2007 cumulative 88.71 billion yuan to buy locomotives, has completed 11 5 52.18% target, we measured the amount of the 2008-2010 purchase of rolling stock for the 13.55% CAGR, which means the next few years the existing Railway equipment upgrades will be to promote the leading force in the railway equipment needs.

Mining Machinery Vibrating Screen

installation: shaker more varieties, are shaking sieve, Vibrating Screen, screen resonance, linear vibrating screen and so on, the structure are also different. user to a different screening machine Yuantong Machinery the installation of a reasonable , use and maintenance.
1 shaker preparation beYuantong Machinerye installation:
The new vibrating screen equipment before installation, should be carefully scrutinized. Because of the manufacturing of finished inventory piling up a long time, such as bearings rust, seals aging or damaged during transport, etc., when such matters need to replace the new parts. There such as the exciter, the factory is anti-rust, anti-rust oil injected, put into operation before switching to oil. should carefully read the instructions before installation, make full preparations.
2 shaker installation:
(1) supporting or hanging device installed. Installation to foundation leveling, and then follow the installation of the parts supporting or hanging the installation of a sieve map and chart, order the installation of all components. Spring loaded beYuantong Machinerye the end tag should be matching the actual stiffness values.
(2) sieve box connected to the supporting or hanging device. Bottles, should be required to adjust the angle. For the hanging of the sieve, sieve boxes should also adjust the screen angle and the level of spindle box. Generally horizontal first level degree of adjustment to eliminate the skew sieve box. the level of correction, then adjust the vertical angle sieve box. isolator spring force should be uniform, the situation can be measured by the force of the compression spring to judge. generally, to material side groups have the same amount of compression spring, nesting end two springs should also be the case. discharging side and feed side of the spring compression can be different. imported valve gate
(3) and installation of electrical tape triangle. Installation, leveling should be based on the motor, motor level needs correction, the two rounds of the corresponding slot tape should overlap the center line, right triangle tape pull requirements.
(4) required to install and fixed screen surface.
(5) Check the sieve the connection components (such as sieve, exciter, etc.) of the fixed case, screen should be uniform tension, to prevent the development of local vibration. Check the transmission part of the lubrication, motor and control box wiring is correct and hand rotation drive section to see if normal operation.
(6) Check the sieve feed, screen discharge chute and funnel at work, whether under the impact phenomena.
3, vibrating screen test run:
Screening machine installation, commissioning should be empty, the initial check installation quality, and make the necessary adjustments.
(1) sieve empty commissioning time not less than 8h. In this time, the observation of sieve quickly whether to initiate a smooth, vibration and stability of operation, no special noise amplitude by the amplitude of a license to observe whether it meets the requirements.
(2) running a sieve, vibrating screen box should not produce yaw. If there yaw, the reason may be the spring on both sides of the height difference is too large, and wire rope hanging uneven rotation axis is not horizontal or triangular belt too tight , should be adjusted accordingly.
(3) 4h drive, the bearing temperature is rising, and then remained stable. The maximum temperature does not exceed 75 ℃, temperature can not exceed 40 ℃.
(4) If abnormal noise or driving after a sharp increase in bearing temperature should be immediately shut down, check whether the rotation axis and the lubrication is good and so flexible, until after the start troubleshooting.
(5) 2-4h after driving down to check whether the connected loose parts, if there is loose to be tightened after the drive.
(6) test after 8h without fault beYuantong Machinerye the installation project acceptance.

from an investment perspective, we believe that the major investment opportunities in the industry and highlights: (1) Industry M & A and restructuring opportunities, (2) the advantages of rapid export growth opportunities for companies
(1) the initial Yuantong Machinerymation of international competitiveness, export growth will remain good since 2004, the industry exports annual growth rate of nearly 70%, much higher than the total sales revenue growth, as construction machinery industry important engine of growth. < br />
We believe that the export growth, mainly due to: the rapid development of engineering machinery industry, a fairly complete industrial system, Yipi advantage enterprises Zizhu innovation and technology upgrading, and has basically build their brands while reducing production costs about 30% less Bi Jingzhengduishou , a strong international competitive advantage; macro-control since 2004, enterprises \At present, China construction machinery industry accounted for the proportion of world trade is only 2% of the international market space is very broad.
The next 5 years, most domestic engineering machinery has confirmed nationalized development strategy and product distribution, marketing channels Zuo well prepared. Women are expected the next two Nianchu Kou growth will remain 30% -40% of the Jiao Yi Shang Quick degree, but should pay attention to international trade friction may have a negative impact.
(2) M & one after another, to bring investment opportunities in the global transfer of manufacturing to China under the tendency of the domestic cost advantage, high growth of the construction machinery industry have become the giants of international M & A race war. The world’s largest machine equipment manufacturers – Caterpillar almost U.S. construction machinery industry leader in mergers and acquisitions are included in the plan: Xiamen Engineering Machinery Company, Guangxi Liugong Machinery Company, Hebei Xuanhua Construction Machinery Corporation, and Komatsu, a joint venture with the mountain push , Carlyle on the acquisition of Xuzhou Construction Machinery and so become the focus of attention. [Page]
Why would Yuantong Machineryeign investment giant construction machinery companies in China showed unimaginable passion? We consider that the following two reasons:
First, the rapid growth of domestic construction machinery market. In recent years, in developed countries and regions, growth rates and large construction machinery in the 3-5% range, in the Chinese market, the growth of construction machinery and exciting. In \15 \Second, the price gap between domestic and international M & A is the optimal strategy of foreign firms. As our country has a significant production cost advantages, the price of foreign construction machinery is usually higher than the domestic market Yuantong Machinery more than 30% -50%, some even over 100%. The majority of domestic users prefer the slightly lower quality, the price significantly cheaper domestic products, in this case, direct exports to China is clearly not the optimal strategy of foreign firms, so foreign firms in China to actively seek opportunities for local production and sales, acquisition of the domestic construction machinery enterprises not only reduce production costs, but also quick access to a mature product line and sales channels, as the optimal choice of foreign investment.
Construction machinery industry investment strategy of investment in construction machinery industry rating of \(1) the impact of the industry by the construction industry is obvious, because macro-control in recent years aimed at real estate, infrastructure investment, the market’s future growth of the industry has been very cautious, therefore, real estate, construction field is expected to be affected affect the valuation industry, we believe that the present macro-economic development situation, construction machinery industry’s price-earnings ratio of 15 times more reasonable.
(2) construction machinery industry full of competition and comparison, the listed companies in the industry in market awareness, management, operation efficiency is better than other industries, so industry focused on the company’s overall quality is better, long-term investment value.

(3) in some companies face M & A and the expected acquisition of quality assets under the parent company, related companies will face a revaluation of investment opportunities.
4. Shipbuilding – an opportunity from the industrial transfer and autonomy, to guard against the risk of cyclical investment opportunities in the shipbuilding industry
(1) the transfer to our shipbuilding industry, Wo Guo’s international share will continue to enhance the production cost because our country has obvious advantages, while the domestic shipbuilding enterprises, speed up the pace of modern shipbuilding mode, Jie Shan Nengli gradually Zengqiang. Shipbuilding completion by calculation, the proportion of China’s global market share of 5.5% in 2000, rapidly increased to 2005, 17%.
From the current situation, the continuing trend of industrial transfer in the first half year 2006, we, though the amount of China’s shipbuilding market share was only 15.3% of the world, but the ship carrying the new ship orders, and orders to undertake the respective share of 20.3 % and 27.1%, of which the world’s share of new orders for ships to undertake the same period last year increased nearly 10 percentage points. As the shipbuilding industry, the average production cycle of 2 years, we believe that at least the next two years, industry trends will continue to support the transfer the main driving force for the development of shipbuilding industry.
(2) improve the state to encourage shipbuilding industry, the level of independence in August 2006, the state issued a \international advanced level, annual output reached 17 million dwt; formed a group with strong international competitiveness of manufacturing enterprises specialized marine equipment, marine equipment domestic production average loading rate of 60% or more.
We believe that under the guidance of the above documents, related departments will introduce a specific industrial policy, to encourage the development of shipbuilding industry in the number received the same time, moreover, to enhance the quality of growth and efficiency, speed up to enhance capability of independent innovation, advanced shipbuilding capabilities, industry comprehensive competitiveness and profitability will be significantly upgrading.
(3) The economy is expected to maintain a high level of industry first half of 2006, China’s shipbuilding industry in three main indicators, although the decline in shipbuilding over the previous period, but the ship carrying orders and new orders were up 43% and 113%, and received new ship orders 16.08 million dwt shipbuilding capacity far greater than the 5.28 million dwt, will be the next two years, China’s shipbuilding industry has laid a solid foundation Yuantong Machinery rapid development.
Shipbuilding industry, ship industry, the investment strategy of investment rating of \Heavy (6.32,0.29,4.81%) 3, which Hudong Heavy Machinery and GSI’s main manufacturing and shipping are directly related to better share the rapid development of shipbuilding industry opportunities. But the company’s recent share price rise has also been in large part reflects the extent of shipbuilding industry boom.
From the cyclical perspective, the shipbuilding industry in valuing the Company has little advantage. For the next major opportunity lies: if the industrial transfer and policy support to a large extent offset by the cyclical nature of the future of industry, the relevant listed company will have long-term value. The main risk is that: If the international shipping industry is easing, the intention of the owner’s orders have a greater impact, the market will cycle of shipbuilding industry is expected to peak, will affect the valuation of listed companies.

focus on supporting the development of the host all kinds of bearings used in high-end cars, motorcycles bearing, home appliances bearings, rolling bearings, including quasi-high speed rail passenger cars and trucks speed bearings, bearing metallurgical and mining machinery, petrochemical machinery bearings, low noise motor bearings, all kinds of CNC machine tool spindle with precision bearings, engineering machinery bearings, wind turbine supporting bearings. focus on research and development of high-tech bearings. including aerospace bearings, high-speed railway passenger car bearings, new car bearings, precision CNC machine tool bearings, industrial robot precision thin wall bearings, special bearings office machinery, metallurgical equipment, long-life bearings with a precision, environmentally friendly new type of bearing, special material bearings and bearing structural modifications such as the current GM.
Highlights the introduction of technology import and export policies and trade protection-oriented

Export tax rebate policy
Approved by the State Council, June 19, 2007, the Ministry of Finance and State Administration of Taxation consultation with the National Development and ReYuantong Machinerym Commission, Ministry of Commerce, Customs General Administration, with its financial and taxation (2007), paper No. 90, issued \tax rate notice \Machine Components Industry tariff reduction products are 36 species, mainly mechanical parts, namely, metal chain, including the motorcycle roller chain, bicycle roller chain, and other articulated chain, skid chain, on the word link chain, welded chain and the kind of chain components; all kinds of iron or steel, standard fasteners, including screws, nuts and threaded products; various springs, including the automotive, railway vehicle spring. The export tax rebate rate by 13% to 5%. otherwise portable hydraulic power tools (including chain saws) and parts from 17% to 9%.
However, the export tax rebate reduction of goods involved in the basic parts of a lower technical level, the higher the technology level of goods, China is still taking the attitude of trade protection, such as copper and aluminum standard fasteners, spring rate of export tax rebate 13%; hydraulic components and devices, and pneumatic components and equipment 17%; dies, bearings, seals, hydraulic and pneumatic power valve is 13%.

Tariff policy
China on December 11, 2001 accession to the WTO, the machinery industry through the 5-year transition period, tariff concessions have been fully materialize. Machinery industry average tariff level from 18.2% in 2000 down to 12.3% in 2002, of which machinery products from 14.1% in 2000 down to 9.9% in 2002; cars from 2000 to 43.9% to 26.9% average tariff .2005, down 8.19% mechanical products, automotive down to 18.57%.
In 2006, mechanical products based upon the change in 2005, only to reduce import tariffs on the automotive industry. Sedans from the 2005 import tariffs of 30% to 28% (July 1, 2006 further reduced from 25%); car parts tariffs from July 1, 2006 the average dropped to 10 percent from .2007 in 2006, import tariffs continue to be granted the same basic parts of machinery .2008 import tariff:
12% of industrial chain, parts of 10%; standard fasteners 8% -10%; hydraulic components and devices, and pneumatic components and equipment 12% -14%; hydraulic motor 10%; mold 8% -8.4%; plastic or rubber mold 5%; 10% of automobile springs, spring Railway with 6%; hydraulic and pneumatic power valves 5%.
Bearings, 2007, except parts other than 6%, are 8%. From January 1, 2008, certain products from provisional tax: drum-shaped roller bearings (heading 84823000), needle roller bearings (heading 84,824,000 ), wind power generation equipment with a cylindrical roller bearings (heading ex84825000), needle and roller ball (heading 84829100) are 4% by the implementation of other parts bearing the implementation by 3%. shaft and housing from 2008 effect on January 1 implementation of the provisional tax rate of 3%. Seal, 2007, 8%, from January 1, 2008, the implementation of the provisional tax rate of 5%. currently Machine Components do not export tariffs.

Introduction of technology import policy-oriented
September 27, 2007, the National Development and ReYuantong Machinerym Commission, Ministry of Finance, the Ministry of Commerce jointly issued \included in the directory of advanced technology and equipment import business in general trade, national policy support for discounting. Ministry of Finance and Commerce at the annual discount discount factor to determine the total amount of funds, the approved discount amount. enterprises to January 31 of each year beYuantong Machinerye the relevant application materials submitted to the relevant authorities.
Important in encouraging the import of equipment, mechanical parts based on wind power industry, bearing a shield machine. And Machine Components are directly related to the construction machinery 5: (1) TBM: cutter diameter> 13m; (2) stabilized soil pavement mixing machine: mixing width> 3m; (3) Crawler Cranes: from the weight of> 300t; (4) highway slurry seal machine: bin> 10m3, Pulp> 3t, (5) asphalt pavement milling machine: milling width> 2.5m, milling planing depth> 3cm.
Threshold for Yuantong Machineryeign investment to improve access
National Development and Reform Commission, Ministry of Commerce on October 31, 2007 issued a new \Ministry of Commerce issued the \>
(1) pressure (35-42MPa) through high-pressure piston pump and motor shaft, pressure (35-42MPa) low speed high torque motor design and manufacturing;
(2) electro-hydraulic proportional servo component manufacturers;
(3) Pressure (21-31.5MPa) the overall multi-valve, pneumatic solenoid valve less power 0.35W, 200Hz or more high-frequency electronic control valve design and manufacturing;
(4) hydrostatic drive design and manufacturing;
(5) Pressure 10MPa or more non-contact gas film seal, pressure 10MPa or more dry gas seal (including test equipment) development and manufacturing;
(6) hydraulic and pneumatic rubber seal with the development and manufacture;
(7) 12.9 and above, high-strength fastener manufacturing;
(8) third and fourth generation of wheel bearings (bearings, the outer ring with flange and the sensor hub bearing features), high profile machining center CNC machine tools and bearings (three-axis machining center with more than functional linkage, position to repeat precision 3-4um), high-speed wire rod, plate rolling mill bearings (single pedestrian speed wire rod mill 120m / s and above, sheet metal processing mill thickness of more than 2m and roller bearings supporting and working), high-speed rail bearings (speed greater than 200km / h), these low noise vibration value bearing Z4 (Z4, Z4P, V4, V4P noise level), all bearing the P4, P2-class bearing manufacturer.
In the restricted directory, Machine Components include: various types of general-level (P0) bearings and parts (ball, cage), rough manufacture.