Precision Casting,Stainless Steel,Auto Parts Gaomi Gongji Precise Metal Co., Ltd , http://www.preccastings.com
The State Council’s recent decision to adjust the proportion of capital for fixed-asset investment projects indicates that the government will further increase insurance growth and promote domestic demand. At the same time, the inventory digestibility of commodity housing is faster than expected, which will further stimulate demand for construction machinery products. Currently, the average P/E ratio for 2009 is at 17.9 times, and the ROE is expected to remain above 19% from 2009 to 2010.
Construction machinery industry profits out of the trough
From the analysis of the first quarterly report in 2009, many Construction machinery companies saw a significant increase in net profit in the first quarter, or turned losses into profit. With the gradual implementation of the 4 trillion investment stimulus plan and the recovery of real estate investment, it is estimated that the second and third quarters of 2009 The prosperity of China's construction machinery industry will continue to rise in the quarter.