The Rise Of The Metal Processing Machine Tool Industry: Exports Will Grow By 1.2% In 2023, And Domestic And Foreign Demand Will Double-click Positive In 2024
Hexun brings you the latest brokerage highlights for your reference:
Review of the machine tool industry in 2023: steady growth, strong external demand>
Demand in the domestic machine tool industry will be generally weak in 2023, but the export market will perform strongly. The output of metal processing machine tools increased by 1.2% year-on-year, while consumption decreased by 6%. Especially from April to October, machine tool output remained stable and increased from November to December.
Analysis on profitability and stock price performance of leading companies>
The profitability and stock price performance of leading companies are highly correlated with overall industry trends. During the industry's rising period, leading companies can achieve both growth in performance and valuation. Even during economic downturns, these companies' performance has remained stable and their valuations have remained low. In addition, leading companies have product and capacity expansion advantages and are expected to outperform their peers in the recovery stage.
2024 Outlook: Positive double-clicks on domestic and foreign demand, and the trend of high-endization continues>
In 2024, PPI and inventory are expected to rise simultaneously, and domestic and foreign demand will improve simultaneously. The growth rate of inventories of industrial finished goods has fallen for seven consecutive quarters, indicating that bottoming has been completed. The recovery of emerging manufacturing and traditional manufacturing will become the main driving force for domestic demand growth. Looking at CNC parts from external demand, my country's metal processing machine tool exports continue to hit new highs, and the overseas market space is vast. The localization rate and performance of high-end machine tools and cutting tools are constantly improving, and policy support and large-scale equipment updates will promote the development of the industry.
Investment advice>
In the field of machine tools, it is recommended to pay attention to changes in demand and applications in new fields. Companies such as Haitian Precision () and Neway CNC are recommended, and Huachen Equipment, etc. are recommended. In the field of cutting tools, since their consumption is highly related to the demand of the machine tool industry, as the industry recovers, companies such as Huarui Precision and Oukeyi are recommended.
Risk Tips>
We need to be alert to risks such as macroeconomic downturns, lower-than-expected domestic demand, and potential risks in the imported parts supply chain.
Hexun Discretionary Equity Writer
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