Machinery manufacturing: opportunities for equipment manufacturing enterprises
Machinery industry: unwound terminal demand. Machinery industry in the first half of 2017 cycle recovery earnings improved but the overall remains weak, valuation is still high. Macroeconomic margins weaken, the start of the zhugra cycle full of uncertainty. Looking forward to the fourth quarter, we still need to focus on the downstream fine molecule industry which is in the tuyere of capacity expansion cycle, and grasp the fine molecule industry where the industry fundamentals hit bottom and rise in 2018.
3C automation: an opportunity for automation equipment in China under industrial transfer. The IPHONEX is expected to lead a new wave of consumer electronics innovation. But we are more focused on a new round of industrial shifts: the rise of consumer electronics in China, and the broader shift of the panel and semiconductor industries. The strong demand of the downstream, the domestic equipment replacement, the machine replacement three power become the driving force of 3C automation industry. Focus on module segment, testing, welding, processing and other equipment enterprises with competitive advantages.
Photovoltaic equipment: boom rise + permeability increase, the equipment benefits from the monocrystalline silicon production cycle. The boom rate of photovoltaic installation continues to exceed the expectation, and the permeability of single crystal silicon continues to increase. The optimistic expectation is that the permeability will reach 50% by 2020, and the global production capacity demand of single crystal silicon will reach 74GW in 2020. The production capacity is still on the road of expansion. Under the expansion of monocrystalline silicon production cycle, equipment leading enterprises benefit the most.
Nuclear power equipment: short on approval and bidding, long on horizontal expansion capacity. The third generation of nuclear power technology is mature, nuclear power approval is expected to be close, new nuclear power unit equipment bidding, the triple impetus is expected to promote the fundamental improvement of the nuclear power equipment industry. However, in the long run, we still need to see the capacity of nuclear power equipment enterprises in the civil, military and other equipment fields to expand, it is expected to smooth fluctuations in performance, open up market space, and achieve sustained growth.
Rail transit equipment: in 2018, the mileage of the high-speed railway was reversed and the subway continued to boom. In 2018, the length of high-speed railway opened to traffic reached 1,906 kilometers, a year-on-year growth of 30.73 percent. The length of high-speed railway opened to traffic reversed and reached a peak of 4,616 kilometers in 2020. The length of subway lines in operation remains robust, with a peak of 1,836 kilometers in 2020 and a peak of 600 kilometers in 2018-2019. As the number of rail crossing equipment bidding is difficult to exceed the expectation, with the increase of the base number, the equipment enterprise is difficult to obtain more growth, focus on the equipment enterprise with consumable attributes, after the market space is larger.
Jiangyin Jingli Environmental Protection Machinery Co., Ltd.