Machinery industry: Layout competitive enterprises

Chutianjinbao information in the first half, by the tightening of macroeconomic policies and the impact of rising prices of raw materials, machinery industry, the overall profit growth to fall. In the second half, with the gradual easing of policy expectations, steel cost pressures to ease, high-end equipment manufacturing industry, "Twelve Five" plan will also be introduced, the industry is expected to improve the policy environment; and shipbuilding, metallurgy, machinery and other traditional industries are still in demand trough.

Short-term decline in sales of construction machinery industry do not change the long-term development prospects, Zoomlion, Xugong other companies remained unchanged full-year profit forecast target. Industry exports this year are expected to return to 2008's record high, concrete machinery products remained relatively high growth rate. Industry as a whole is about 12 times earnings, valuation of nearly historic lows, can bargain layout.

Railway industry a significant slowdown in investment growth during the first half, second half of the Ministry of Railways is expected to tender will be restarted after the meeting, the railway equipment industry will maintain steady growth. Railway industry, "five-second" period will not reduce the scale of investment, access to urban rail transit construction phase of rapid development, the development of heavy rail have more space.

CNC machine tools to maintain a high growth rate of 1-5 months, the output of CNC metal cutting machine tools increased by 50.20%. Trade deficit to expand import and export, domestic high-end products still rely on imports.

Investment Strategy: From the valuation and growth investment options the subject of two angles, less optimistic about the valuation of construction machinery industry, major companies have Zoomlion, Xugong, etc.; railway equipment industry, defensive value of the apparent concern for China CSR, China CNR; industrial upgrading in line with the trend of alternative to manual and machine-related companies, including the day of digital, robot, Hangyang shares of long-term prospects of the company.