The machinery industry is optimistic about investing in high-end equipment and precision manufacturing in 2011

According to the analysis from Ping An Securities, the revenue and profit of railway equipment and construction machinery grew fastest in 2010, and the military and construction machinery performed the best. In the major machinery sub-industries, the revenue and profit of construction machinery increased by more than 50 in the first three quarters of 2010 compared with the same period of last year. %, revenue and profit of railway equipment increased by approximately 50% year-on-year, metallurgical heavy industry increased by approximately 20% year-on-year, and shipbuilding increased by less than 10% year-on-year. We believe that in 2011 the revenue and profit growth of the railway equipment industry will maintain the level of 2010, the growth rate of construction machinery and containers will be approximately 20%, the growth rate of metallurgical heavy industry will be approximately 30%, and the growth rate of shipbuilding is expected to remain below 10%.

2011 strategy: high-end equipment, precision manufacturing and energy-saving emission reduction for the wing, construction machinery for the body, the first wing. The profit growth rate of construction machinery is expected to bottom out in the second quarter, before falling and rising. Therefore, in general, railway equipment, precision manufacturing, CIMC, and policy-supporting topics with overdetermined and over-expected factors can be overestimated in the previous period. Investment varieties - energy-saving emission reduction, post-engineering machinery.

The aerospace field focuses on the injection of aviation assets and satellite applications in the aerospace arena. At this stage, aerospace still embodies the characteristics of military surges and plunges. It is important to focus on assets injection into key companies.

The giant manufacturing industry is expected to emerge in the next decade.

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