Heavy industry's three leading companies have fallen sharply in the third quarter

Recently, China First Heavy (601106), Double Heavy Equipment (601268), Taiyuan Heavy Industry (600169) announced the third quarter of this year's performance report. The old leading companies in the three heavy machinery industries have shown the following slippery situation, compared with the same period of last year, the reduction rate is greater.

According to the first three quarters of 2011 of a Chinese company, the company’s net profit was 99,002,111.7 yuan, a decrease of 73.81% over the same period of the previous year. Basic earnings per share was 0.02 yuan, a decrease of 66.67% over the previous year. The first three quarters of double-reloaded net profit was 81,669,897.69 yuan, a year-on-year decrease of 100.2%. Earnings per share was 0.0483 yuan, a decrease of 100.30% from the same period of last year; Taiyuan Heavy Industry's first three quarters of net profit was 342,463,213.48 yuan, a decrease of 57.75% over the same period of last year. 0.2119 yuan, a decrease of 80.93% over the same period of last year.

Taiyuan Heavy Industry also said in the annual report, the market competition is fierce, sales prices have decreased, during the period of cost increases, resulting in a drop in net profit. According to a relevant expert's analysis of a heavy performance, the gross margin in the third quarter decreased compared with the previous two quarters. The gross profit margin in the first and second quarters was still above 21%, and the gross profit margin in the third quarter had dropped to just over 19%. The main reason for this is due to the fact that it has not been able to maintain a high raw material price since the second half of last year. In addition, all three companies have reported that due to the external environment, the company’s payment is not good.

Some experts predict that due to the decline in the performance of the three companies in the first three quarters, the full year's results will likely be lower than last year.

Since the financial crisis in 2008, the heavy machinery industry has experienced a decline since 2009. Since 2010, the total industrial output value, sales value, and export delivery value of the lifting and transport machinery industry have increased rapidly. The growth of mining machinery has been slow, and the output of metallurgical equipment is still falling from month to month. The increase in the output value of new products has accelerated, indicating that companies are speeding up structural adjustments. The export situation is also not optimistic, especially the export situation of the metallurgy and mining industries is very serious. This is mainly due to the steady recovery of the world economy since the international financial crisis. Although the major industrial countries have ended the economic contraction in the past half year, the foundation for the recovery of the world economy is still very fragile. The economic situation in the future cannot be optimistic. The continuous warming of trade protection has a greater impact on the export of heavy machinery products in China. New economic growth areas such as offshore engineering, civil nuclear power, wind power generation, and shield machines face fierce competition from large foreign companies.

Faced with this year's unfavorable situation, transformation and upgrading will be the focus of the development of the heavy machine industry.

Zhang Weixin, China Heavy Machinery Industry Association, said that the implementation of the National Outline for the Medium and Long-Term Scientific and Technological Development Plan, the State Council's Opinions on Accelerating the Revitalization of the Equipment Manufacturing Industry, and the State Council's Decision to Accelerate the Cultivation and Development of Strategic Emerging Industries, For the development of heavy machinery industry has brought an excellent opportunity. Under this favorable environment, intensifying technological research and development, strengthening independent innovation, and achieving key leapfrogging are the development direction of the heavy machinery industry.

In particular, Zhang Weixin mentioned that in mid-October last year, the State Council issued the "Decision on Accelerating the Cultivation and Development of Strategic Emerging Industries," marking a number of industries including strategic emerging industries, modern energy industries, integrated transportation systems, and marine economy. During the “Twelfth Five-Year Plan” period, it will receive major developments and will receive strong support for relevant policies, which means that the heavy machinery industry is facing new opportunities for development.