The implementation of infrastructure projects is a

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The sales volume of construction machinery industry in the peak season is expected to be faster than expected. In the second half of the year, the growth rate of infrastructure is expected to clear away iron filings and dirt, and stabilize and recover. At the end of July, the Political Bureau set the tone to increase the efforts to make up for weaknesses in infrastructure. Previously, the national standing committee also proposed to speed up the issuance and use of 1.35 trillion yuan of local government bonds, and to promote a number of private investment in transportation, oil and gas, telecommunications and other fields Projects with clear investment return mechanism and great commercial potential. Taking the transportation sector as an example, in August, the national development and Reform Commission approved the rail transit construction plans of Changchun and Suzhou, involving an investment of 173.7 billion yuan. At present, the pace of railway investment across the country is also accelerating. According to the data of China Railway Corporation, our research investigated the impact of adding GNP and carbon nanotubes on resin in the whole month. China Railway has invested 461.2 billion yuan, 63% of the annual plan, and the completion progress has increased by 6.2 percentage points year-on-year

according to the information of this press conference, up to now, 130 of 172 major water conservancy projects have been started, and the investment scale under construction exceeds 1trillion yuan. Construction of high standard farmland was accelerated. A number of major railway projects have been completed and put into operation. In the next step, the national development and Reform Commission will, on the premise of resolutely and effectively preventing the risk of local government debt, increase efforts to make up for weaknesses in the field of infrastructure, stabilize effective investment, continuously improve investment efficiency, and ensure that limited funds are invested in areas that can increase effective supply and complement development weaknesses, so as to promote high-quality development. We believe that the growth rate of infrastructure investment is expected to stabilize and rebound with the greater efforts to make up for weaknesses in local infrastructure

the downstream start-up tends to be active, and we are optimistic about the concept of S-N fatigue life curve and fatigue limit proposed for the excavator sales in the peak season: according to our communication with industry personnel, the downstream project start-up tends to be active in early August, and the startup hours of several main engine plants are up year-on-year. We are optimistic about the peak season sales in September. At present, it is estimated that the excavator sales in September will increase by 20%-30% year-on-year, which is about 10% higher than the previous market expectation. It is estimated that a number of infrastructure projects will be completed before the end of the year, so we are still optimistic about the peak season demand for construction machinery at the end of the year

investment suggestions: considering the strong fundamentals of the construction machinery sector, the growth rate of infrastructure construction is expected to stabilize and recover in the second half of the year. Sany Heavy Industry, Hengli hydraulic, Aidi precision, Liugong, XCMG machinery, Anhui Heli and Zhejiang Dingli are recommended


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