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Railway locomotive accessories increase faster than the vehicle

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Railway locomotive accessories increase faster than the vehicle

Date of release:2018-12-09 Author: Click:

 

From November last year when China accelerated the speed of railway construction to the first two months of this year, the growth rate of China's railway fixed asset investment has accelerated significantly. From January to February 2017, the amount of fixed asset investment in railways reached 42.1 billion yuan, up 172% year on year, among which the expenditure on railway locomotive parts acquisition, renewal and transformation increased by more than 100%. While this is not yet fully reflected in the revenue of the companies involved, we believe that railway fixed asset investment will be maintained at least above 60% this year, which will lay a foundation for the annual revenue growth of the railway equipment industry.


From the perspective of the sub-industry, the revenue growth of the accessory industry is faster than that of the vehicle industry. In the first two months of this year, the revenue growth rate of the whole vehicle industry was only 6%(the year-on-year decline of production of trucks and locomotives was nearly 50%, and that of buses was 167%), while the growth rate of spare parts and special equipment was still relatively fast (above 35%). This is mainly because: at present, although most of the vehicle demand decline, but manufacturers are still optimistic about medium - and long-term demand growth, so the purchase of parts still maintain a large growth; The maintenance demand of accessories is relatively rigid; Accessories export competitiveness is relatively large, the impact of the decline in overseas market demand is relatively small. We expect the annual output growth of passenger cars to be above 50%, the decline of freight cars to be around 20%, and that of locomotives to be basically flat. The revenue growth of spare parts is still faster than that of complete vehicles, but the gap will be narrowed.



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