In the first half of 2010, the profitability of machine tools and other industries doubled

● Profits from construction machinery and machine tools have doubled. In the first half of the year, construction machinery listed companies realized revenue of 82.182 billion yuan, a year-on-year increase of 68.17%, a net profit of 9.455 billion yuan, a year-on-year increase of 122.74%, and a net asset yield of 17.31%, a year-on-year increase of 109.6%. In the first half of the year, the listed company of machine tools and tools realized 7.221 billion yuan in revenue, an increase of 58.29% year-on-year, and a net profit of 485 million yuan, an increase of 99.58% year-on-year;

● The operating conditions of the mechanical sector in the first half of the year are very satisfactory. In the mid-2010 period, the listed companies in the mechanical sector realized revenue of 416.058 billion yuan, a year-on-year increase of 31.99%, a net profit of 30.224 billion yuan, a year-on-year increase of 38.36%, a weighted average earnings per share of 0.2071 yuan, and a weighted average return on equity of 6.35%, both lower than two. Average city level. The net cash flow from operating activities per share was -0.0362 yuan, which was lower than the average of the two cities.

● The recovery of electrical equipment is relatively flat. In the first half of the year, listed electric equipment companies achieved revenue of 112.6 billion yuan, a year-on-year increase of 18.97%, a net profit of 8.6 billion yuan, a year-on-year increase of 19.78%, and a net asset yield of 6.25%, a year-on-year increase of -18.85%.

● Heavy mining machinery operating conditions are sluggish. In the first half of the year, heavy mining machinery listed companies realized revenue of 18.433 billion yuan, an increase of 8.38%, a net profit of 1.725 billion yuan, an increase of 3.21% year-on-year, and a net asset yield of 5.33%, a year-on-year increase of -40.83%.

● The future of the machinery industry is still dominated by emerging industries. According to the report, the strong cyclical and economically sensitive construction machinery and machine tool tools in the first half of the year continued the strong recovery trend in the second half of last year, which basically doubled the earnings growth; while the performance of electrical equipment was declining due to the deceleration in demand for power generation equipment and primary transmission equipment. Relatively stable; heavy mining machinery is affected by the low growth rate of investment in basic industries such as coal, electricity, and oil, and the overall operating conditions are sluggish. Looking into the future, despite the rapid growth in construction machinery and machine tools in the first half of the year, we also noticed that the earnings growth rate of the two industries in the second quarter was significantly lower than that in the first quarter. We expect that the development gap in the sub-sectors of the machinery industry will be different in the second half. Reduced, faster growth of construction machinery and machine tool workers will moderately decline. Maintaining the industry neutral rating, the focus of future attention is still on emerging industries that are in line with economic restructuring, such as high-speed rail, nuclear power, smart grids, parts and components related to electric vehicles, and energy conservation and emission reduction.