The hottest China machinery construction holds a c

China machinery construction takes a cautious view of the construction machinery industry

China machinery construction takes a cautious view of the construction machinery industry

China Construction machinery information

Guide: we take a cautious view of the construction machinery industry, but maintain Zoomlion's buy rating. We raised Zoomlion's annual earnings per share forecast by 7%-13% to include the impact of better than expected performance in the fourth quarter. Therefore, we base Zoomlion H shares on director quote; SCUT's 12-month target price

take a cautious view on the construction machinery industry, but maintain the purchase rating of Zoomlion

we raised Zoomlion's annual earnings per share forecast by 7%-13% to take into account the impact of better than expected performance in the fourth quarter. Therefore, We base Zoomlion H shares on director "The 12-month target price of SCUT was raised from HK $9.7 to HK $11.3, and the target price of A-share was raised from RMB 8.7 to 10.0. We are still cautious about the construction machinery industry, but Zoomlion is still our preferred stock, because: 1) the current corresponding 2012 expected P/E ratio of this stock is only 8.6 times, and a permanent re-use of input data is lower than the industry median of 12.3 times. We believe that the current valuation of this stock is attractive and should be a good opportunity to buy; 2) We expect that the demand for concrete machinery should be relatively stable in the short term, but due to the further slowdown of new real estate construction and the weak recovery of infrastructure construction, we believe that the growth rate will slow down in the long term; 3) As the only national tower crane manufacturer, we expect the company to gain more share in this market. We believe that its unique market position makes the company expected to continue to integrate this scattered market; 4) The company is the company with the strongest financial strength in the industry in the K 2016 exhibition, with a net cash of 7billion yuan as of the third quarter

downgrade Sany to neutral

we downgraded Sany from buy to neutral, and the 12-month target price is still 14.3 yuan. Following the recent strong performance of the stock (the rise in the past two months is 15%, and the rise in the same industry is only 5% due to its uniform hierarchical structure), the current implied upward space of the target price is only 4%. We still believe that Sany Heavy Industry is a leading enterprise in the industry, with high enthusiasm of the management team, good incentive mechanism and excellent execution record. The company's product line is the most abundant in the industry, and it has a leading market position in all core segments. However, the current stock price corresponds to a 2012 expected P/E ratio of 12.5 times, while caterpillar, the world's leading enterprise, is 11 times, and the predictability of profit growth of the latter is much higher. We believe that the current valuation of Sany Heavy Industry is less attractive than before

mean reversion opportunity; Buy Tiandi technology

the performance of Tiandi technology in the past two months is 20% behind that of the whole machinery sector. Therefore, we believe that there should be an opportunity for the stock to return to the average

our 12-month target price is still 7 - the head position is 19.4 yuan, implying 18% upside. We believe that the diversified business model of Tiandi Technology (coal machinery, coal sales and services, etc.) should provide a better defensive for the company in the current uncertain macroeconomic environment