China's high-end equipment manufacturing industry will usher in a new era

In the "Twelfth Five-Year Plan", high-end equipment manufacturing is undoubtedly one of the most prominent bright spots. As a strategic emerging industry, high-end equipment manufacturing industry has a considerable technical base and talent pool in the country, and its market space is large, which can play a supporting role for the national economy.

With the rapid deployment of China's high-end equipment manufacturing industry, heavy machinery, nuclear power, high-speed rail, aviation, high-end CNC machine tools, and offshore engineering have become hot spots in the industry. Various supporting policies have been gradually introduced. In 2011, they were widely used by the industry. Optimistic is an investment opportunity for high-end equipment manufacturing.

"The high-end equipment manufacturing sector benefits from the 12th Five-Year Plan and is expected to become a hot spot in the next month or two, and even ran out of stocks. These industry leaders are already long-term members of the 100 billion club. They are definitely this year. Man of the stock market." December 25, 2010, Deutsche Securities analyst Rita told reporters.

High-end equipment manufacturing covers which key industries? Qu Xianming, former vice president of the General Research Institute of Machinery Science, told reporters that the areas covered by high-end equipment manufacturing mainly include aviation equipment, satellites and their application industries, rail transportation equipment, marine engineering equipment, and intelligent manufacturing equipment. He said that in the seven strategic emerging industries, the development of the other six major industries is also inseparable from the support of equipment, and the development of their required equipment has also become the focus of their respective fields.

What needs to be pointed out is that high-end equipment manufacturing is characterized by high technology, high added value, and strong use. It is a high-end part of equipment manufacturing industry, and all of them are new industries. However, traditional industries cannot be included. For example, although the million kilowatt ultra-supercritical generator set is also a high-end part of the equipment manufacturing industry, it is a traditional industry and therefore cannot be included in the key development areas of high-end equipment manufacturing.

"Although there is only a difference between the "high-end manufacturing industry" and "high-end equipment manufacturing," it is of great significance." Qu Xianming believes that the high-end equipment manufacturing as a strategic emerging industry, enough to see the country's development of the equipment manufacturing industry Pay attention. This is of great significance to the development of the machinery industry, especially equipment manufacturing. He believes that equipment manufacturing industry is a symbol of the country's strategic industries and industrial rise, and is the basis and core competitiveness of a country's manufacturing industry. It has the characteristics of high industrial correlation, strong ability to absorb employment, and intensive technology funds. Actively seizing high-end equipment manufacturing is the strategic focus of developed countries seeking the position of the world's industrial power.

In the fourth quarter of 2010, the performance of the equipment manufacturing industry in the capital market was very eye-catching. Xugong Machinery (000425, Shares), Sany Heavy Industry, Jinxi Axle, Taiyuan Heavy Industry, Erzhong Heavy Equipment, China Heavy Industry, China Shipbuilding, CNOOC Engineering , China Nuclear Technology (000777, stocks) and other stocks far outperformed the broader market average gains. “It can be said that in the next 10 years, the high-end equipment manufacturing industry will usher in a period of golden growth. With the country’s rapid deployment to high-end equipment manufacturing industries, various supporting policies have been introduced one after another. The industry is generally optimistic about the investment opportunities in this area in 2011. As the high-end equipment industry enters the golden age, the future will be excellent and will inevitably bring about huge investment opportunities, especially in related industries, leading companies will gain greater opportunities for development, such as XCMG, Zoomlion and Sany Heavy Industry. CIMC, a Chinese company will inevitably become a stock market situation company," said the analyst.

On December 23, 2010, Zoomlion (01157.HK) landed on the Hong Kong Stock Exchange and became the last new share of the Hong Kong market with more than 10 billion in financing this year. Zoomlion was sought after by the market after the first round of roadshows, including Soros, the international capital stalker, and Lee Shau Kee, the “Asian stock god”, all of whom subscribed to the stock.

The "traditional + emerging" combination is more appetizing. How can high-end equipment manufacturing really move toward "high-end", change from "big" to "strong", and turn "made in China" into "created in China"?

Wang Ruixiang, president of the China National Machinery Industry Federation, believes that although China is already among the ranks of manufacturing powers, the contradiction between being big and not strong has always plagued the scientific development of the industry. In the high-end equipment field, 80% of integrated circuit chip manufacturing equipment, 40% of large-scale petrochemical equipment, 70% of key auto-manufacturing equipment, and advanced intensive agricultural equipment still rely on imports. Most of the export products are OEM production, with less than 20% of their own brands. Therefore, adjusting the structure and changing the mode will become the most important task for the equipment industry to achieve scientific development. "To master the core technologies of leading products, we have a number of key products and famous brands with independent intellectual property rights, and the development of strategic emerging industry equipment, and the proportion of high-end equipment production has increased to 15% or more, basically guaranteeing the national economy and national defense construction. The first is the improvement of product quality, and the second is the breakthrough of key components." Wang Ruixiang said.

Take the large-scale development of high-end equipment manufacturing as an example. Large aircraft is the only product in the industrial sector that must solve the three technical problems of ultra-high speed, ultra-high pressure, and ultra-high temperature at the same time. It is referred to as the “crown” in the high-end manufacturing field. Pearl." Recently, China’s large aircraft engine project has ushered in new progress. According to Li Jibao, deputy general manager of AVIC Commercial Engine Co., Ltd., the preliminary engine program will be finalized at the end of 2010. The technical route can be determined in 2011 and will be in the “Twelfth Five-Year Plan” period. Developed a complete engine verification machine.

JP Morgan Managing Director Li Jing told China Economic Weekly that the combination of the traditional traditional construction machinery industry into “traditional + emerging” has become a high-end manufacturing enterprise, which is the formation of the foundation and accumulation of traditional industries. New technological breakthroughs and improvements will surely be favored by the market. “We not only have a lower valuation of traditional industries, but also enjoy the high growth of new industries. Such companies will certainly stand out from the competition.” said Li Jing.