Agricultural Machinery Enters a Period of Policy Dividends, Market Share of Domestic Agricultural Machinery Rises
Recently, reports have said that the roadmap for the development of China's agricultural equipment over the next ten years has been drawn up. The technology roadmap for key areas of "Made in China 2025" shows that by 2025, the total output value of the agricultural industry must reach 800 billion yuan, the market share of domestic agricultural machinery products must exceed 95%,
Recently, reports have said that the roadmap for the development of China's agricultural equipment over the next ten years has been drawn up. The technology roadmap for key areas of "Made in China 2025" shows that by 2025, the total output value of the agricultural industry must reach 800 billion yuan, the market share of domestic agricultural machinery products must exceed 95%, and the market share of high-end products such as large tractors of more than 200 horsepower and cotton pickers must reach 60%.
At present, the first draft of the "13th Five-Year Plan" for China's agricultural machinery industry has also been completed, and is expected to be issued early next year.
In addition, in August this year, in order to promote the transformation of agricultural development methods and accelerate the process of agricultural modernization, the Ministry of Agriculture issued the "Opinions on Carrying Out the Action to Advance Full Mechanization of the Production of Major Crops." The "Opinions" proposed striving to raise the comprehensive mechanization level of national crop cultivation and harvesting to more than 68% by 2020, among which the comprehensive mechanization level of cultivation and harvesting of the three major grain crops should all reach more than 80%, and the levels of mechanized plant protection and pest control, mechanized straw treatment and mechanized drying treatment should be greatly improved. Taking the main production areas of grain, cotton, oil and sugar as key areas, about 500 demonstration counties that take the lead in basically achieving full mechanization of production should be built, and in provinces with the conditions, the whole province should be advanced.
Industry insiders said that an important way to accelerate agricultural modernization is to improve the degree of agricultural mechanization and scale. The agricultural machinery industry is the material foundation of agricultural development. Developing the agricultural machinery industry is of great significance to increasing agricultural output, raising farmers' incomes and safeguarding national food security. At present, vigorously developing the agricultural machinery industry, promoting the transformation and upgrading of China's agricultural machinery industry, and moving toward new-type efficient agricultural machinery have become an important topic for China's agricultural machinery industry.
With the support of national policies and funds, the development of agricultural modernization has continued to accelerate, and listed companies involved in modern agricultural machinery production will usher in broad development space. The recent market performance of such stocks has also been relatively active. According to statistics from a reporter of "Securities Daily," since November, all 14 tradable agricultural machinery concept stocks have risen. The six stocks Xingguang Agricultural Machinery, Suchangchai A, Xinjie Pump Industry, Zhouyan Technology, Xinjiang Tianye and Yueda Investment all recorded cumulative gains of more than 10% during the period, reaching 24.44%, 19.91%, 19.78%, 19.52%, 12.50% and 10.81% respectively.
Among the above stocks, Xingguang Agricultural Machinery is worth mentioning. The company's main business is the research and development, production and sales of combine harvesters. Its main products are Xingguang series combine harvesters, which can be used for harvesting crops such as wheat, rice and rapeseed. They are the mainstream models of combine harvesters for rice and rapeseed in China, and are also one of the two major varieties of wheat combine harvesters. In 2014, the company sold 8,189 combine harvesters. According to the industry ranking certification document issued by the China Agricultural Machinery Industry Association, by the number of self-propelled grain combine harvesters sold, the company ranked third in the industry. Northeast Securities believes that China's agricultural mechanization path is still long. In addition to consolidating the market share of existing products, if the company can enter certain underdeveloped niche fields through talent introduction, extensional mergers and acquisitions and other means, its prospects will be very broad. It is estimated that the company's earnings per share from 2015 to 2017 will be 0.58 yuan, 0.64 yuan and 0.77 yuan respectively, maintaining a "recommended" rating.
Yesterday, supported by the above positive factors, 7 agricultural machinery concept stocks still rose against the market, among which Smart Agriculture and Suchangchai A both rose by more than 2%, at 2.98% and 2.36% respectively. In addition, the stocks that rose also included Longxin General (0.59%), Yueda Investment (0.45%), Xinyan Shares (0.33%), Jifeng Agricultural Machinery (0.18%) and Xingguang Agricultural Machinery (0.13%).
In fact, it is not difficult to find that at present, agricultural machinery has entered a period of policy dividends. Sinolink Securities said that as the agricultural machinery industry shifts toward full-process, large-scale and intelligent development, companies with technological advantages are expected to see further increases in concentration. It is suggested to grasp investment opportunities in the agricultural machinery industry from two main lines: first, agricultural machinery companies in blue ocean or quasi-blue ocean sub-industries, such as corn harvesters, water-saving irrigation equipment, agricultural pumps and other sub-industries; second, agricultural machinery companies embracing transformation and upgrading, as transformation will bring opportunities for valuation improvement.
At present, the first draft of the "13th Five-Year Plan" for China's agricultural machinery industry has also been completed, and is expected to be issued early next year.
In addition, in August this year, in order to promote the transformation of agricultural development methods and accelerate the process of agricultural modernization, the Ministry of Agriculture issued the "Opinions on Carrying Out the Action to Advance Full Mechanization of the Production of Major Crops." The "Opinions" proposed striving to raise the comprehensive mechanization level of national crop cultivation and harvesting to more than 68% by 2020, among which the comprehensive mechanization level of cultivation and harvesting of the three major grain crops should all reach more than 80%, and the levels of mechanized plant protection and pest control, mechanized straw treatment and mechanized drying treatment should be greatly improved. Taking the main production areas of grain, cotton, oil and sugar as key areas, about 500 demonstration counties that take the lead in basically achieving full mechanization of production should be built, and in provinces with the conditions, the whole province should be advanced.
Industry insiders said that an important way to accelerate agricultural modernization is to improve the degree of agricultural mechanization and scale. The agricultural machinery industry is the material foundation of agricultural development. Developing the agricultural machinery industry is of great significance to increasing agricultural output, raising farmers' incomes and safeguarding national food security. At present, vigorously developing the agricultural machinery industry, promoting the transformation and upgrading of China's agricultural machinery industry, and moving toward new-type efficient agricultural machinery have become an important topic for China's agricultural machinery industry.
With the support of national policies and funds, the development of agricultural modernization has continued to accelerate, and listed companies involved in modern agricultural machinery production will usher in broad development space. The recent market performance of such stocks has also been relatively active. According to statistics from a reporter of "Securities Daily," since November, all 14 tradable agricultural machinery concept stocks have risen. The six stocks Xingguang Agricultural Machinery, Suchangchai A, Xinjie Pump Industry, Zhouyan Technology, Xinjiang Tianye and Yueda Investment all recorded cumulative gains of more than 10% during the period, reaching 24.44%, 19.91%, 19.78%, 19.52%, 12.50% and 10.81% respectively.
Among the above stocks, Xingguang Agricultural Machinery is worth mentioning. The company's main business is the research and development, production and sales of combine harvesters. Its main products are Xingguang series combine harvesters, which can be used for harvesting crops such as wheat, rice and rapeseed. They are the mainstream models of combine harvesters for rice and rapeseed in China, and are also one of the two major varieties of wheat combine harvesters. In 2014, the company sold 8,189 combine harvesters. According to the industry ranking certification document issued by the China Agricultural Machinery Industry Association, by the number of self-propelled grain combine harvesters sold, the company ranked third in the industry. Northeast Securities believes that China's agricultural mechanization path is still long. In addition to consolidating the market share of existing products, if the company can enter certain underdeveloped niche fields through talent introduction, extensional mergers and acquisitions and other means, its prospects will be very broad. It is estimated that the company's earnings per share from 2015 to 2017 will be 0.58 yuan, 0.64 yuan and 0.77 yuan respectively, maintaining a "recommended" rating.
Yesterday, supported by the above positive factors, 7 agricultural machinery concept stocks still rose against the market, among which Smart Agriculture and Suchangchai A both rose by more than 2%, at 2.98% and 2.36% respectively. In addition, the stocks that rose also included Longxin General (0.59%), Yueda Investment (0.45%), Xinyan Shares (0.33%), Jifeng Agricultural Machinery (0.18%) and Xingguang Agricultural Machinery (0.13%).
In fact, it is not difficult to find that at present, agricultural machinery has entered a period of policy dividends. Sinolink Securities said that as the agricultural machinery industry shifts toward full-process, large-scale and intelligent development, companies with technological advantages are expected to see further increases in concentration. It is suggested to grasp investment opportunities in the agricultural machinery industry from two main lines: first, agricultural machinery companies in blue ocean or quasi-blue ocean sub-industries, such as corn harvesters, water-saving irrigation equipment, agricultural pumps and other sub-industries; second, agricultural machinery companies embracing transformation and upgrading, as transformation will bring opportunities for valuation improvement.