Excavator domestic brand share increased

Recently, we conducted surveys on some excavator dealers in two major provinces in Jiangsu and Anhui. From the sales situation of several excavator dealers surveyed in the first quarter, it fell about 20% year-on-year in January and February, and Sany’s share of excavators is still the first. In 2011, it was an adjustment year for Jiangsu Province. Excavator dealers generally believe that sales in Jiangsu Province will decline by about 10-20%. The Midwest market is better than the East, and the growth rate in the second half will rise. Last year, domestic brand excavators accounted for nearly 38%. In the past two years, domestic excavator brands represented by Sany and Liugong (000528) have rapidly increased. The excavator needs to build owners in new rural areas and new towns. In the future, it will benefit from irrigation and water conservancy construction and labor substitution. We are optimistic about the market share of domestic excavator brands such as SANY. The related beneficiary companies are Sany Heavy Industry (600031), Hengli Oil Tank (601100), and Liugong.