Excellent companies in the machinery industry are anticipated to reverse the declining profit trend. Some firms demonstrate strong technological innovation capabilities, and CNC machine tools will remain a key area for investment. With policy support driving innovation, the sector is set for sustained growth.
Policy-driven innovation is gaining momentum. According to a recent report from Everbright Securities, the sales of major construction machinery in January 2006 were low, largely due to the Spring Festival holiday. However, the demand trend for the construction machinery market in 2006 is expected to remain stable compared to 2005, with certain models like loaders and excavators likely to see positive growth. As a result, leading companies in the industry are expected to reverse their profit decline.
The State Council recently released the National Medium- and Long-Term Science and Technology Development Plan, which outlines clear goals for building an innovative country. Among the 15 special plans, CNC machine tools and aircraft manufacturing are highlighted. Technological innovation is becoming the core of industrial policy, accelerating the localization of mechanical products, especially in major equipment industries. At the corporate level, many companies have become internationally competitive, achieving import substitution or large-scale exports, such as in the case of loaders, forklifts, and bearings. With continued policy support, this trend is expected to strengthen further, creating new investment opportunities in the machinery sector.
Shenyang Machine Tool stands out as a company worth watching. Driven by favorable policies and strong performance growth, its stock has recently outperformed the broader market. According to Everbright Securities, the company's performance is expected to grow by 30% in 2006, fueled by increased investment in downstream industries and economies of scale. As fundamentals improve, governance and management issues are expected to be addressed, and historical challenges will gradually be resolved, supporting continued outperformance in the stock market.
Strontium Carbonate,High Purity Strontium Carbonate,High Whiteness Strontium Carbonate,White Powder Strontium Carbonate
Shenzhou Jiaxin Chemical Co.,Ltd , https://www.jiaxinbaso4.com