A worker assembles and tests a full-automatic picosecond laser cutting machine at Jiangsu Xianhe Laser Technology Co., Ltd. in Suqian Laser Industrial Park, east China's Jiangsu Province, May 14, 2020. (Xinhua/Han Yuqing)
BEIJING, Sept. 3 (Xinhua) -- In the first half of 2020, although Chinese companies were affected by the COVID-19 outbreak, the equipment manufacturing industry was still a hotspot.
As of August 28, the total revenue of 221 companies in China's special equipment manufacturing industry recorded a year-on-year increase of 11 percent, with the net profit attributable to the owners of the parent companies growing by 39 percent year on year.
Specifically, companies in the fields of engineering machinery, robotics, semiconductor equipment, PV equipment and wind power equipment registered an outstanding performance.
-- Leading machinery companies as pacemakers
Driven by the demand for infrastructure construction, the engineering machinery industry witnessed a significant growth in the first half of the year.
Meanwhile, the agricultural machinery industry also performed well. As the government has attached increasing importance to the agriculture, potential opportunities appear in the agricultural machinery industry.
Sany Group, a leading enterprise in high-end equipment manufacturing, predicts in its semi-annual report disclosed on August 28 that the growth rate of infrastructure investment in 2020 will increase significantly, the demand for renewal of machinery and equipment will continue to grow, and the demand for equipment driven by the trend of artificial replacement will become more obvious, adding that intellectualization, unmanned technology, energy efficiency and environmental protection are the development trend of the engineering machinery industry, and will also become the driving forces for the long-term development.
In the first half of 2020, Sany Group posted a net profit of 8.468 billion yuan, up 25.48 percent year on year, while its major products such as excavating machinery, concrete machinery and lifting machinery have continued to grow.
Zoomlion, another engineering machinery giant, realized a revenue of 28.827 billion yuan in the first six months of the year, an increase of 29.49 percent year on year, while the company's net profit reached 4.018 billion yuan, a year-on-year increase of 55.97 percent.
In addition, benefited from sales growth of large and medium-sized tractors and diesel engines, First Tractor Company Limited's revenue recorded a 20.68 percent increase in the first half of the year, with its net profit up by 1,548.75 percent year on year.
As an upstream supplier of the engineering machinery industry, Hengli Hydraulic registered a year-on-year increase of 47 percent in net profit in the first half of 2020.
Besides, Shandong Hongyu Agricultural Machinery Inc, with agricultural tractor lifters as its primary business, witnessed a year-on-year increase of 18 percent and 205 percent in revenue and net profit, respectively, in the first half of 2020.
-- Accelerated development in intelligent manufacturing
According to semi-annual reports of listed companies, companies engaged in robotics, intelligent manufacturing and upstream core components have entered the accelerated development period.
According to Nanjing Estun Automation Company's semi-annual report released on August 28, the company's first-half revenue and net profit rose 72.08 percent and 8.72 percent year on year, respectively.
Specifically, the company's business revenue from robot and intelligent manufacturing rose by 156.32 percent year on year, accounting for 70.50 percent of the company's overall revenue.
Topstar, another industrial robot leader, saw its revenue and net profit surged 107 percent and 366 percent year on year respectively in the first half of the year.
In addition, Leadshine, which focuses on controllers, drivers and motors, saw a year-on-year increase of 96 percent in its net profit in the first half of 2020.
-- Promising prospect in semiconductor equipment
With the strong development of semiconductor industry, semiconductor equipment manufacturers also reported a soar in benefits in the first half of the year, with a promising prospect.
According to the semi-annual report, Advanced Micro-Fabrication Equipment Inc. China made a profit of 119 million yuan, up 291.98 percent year on year.
By growth rate, Hangzhou Changchuan Technology Co., Ltd. grew faster. Its semi-annual report showed that the company achieved the net profit growth of 2,352 percent during the period.
The semiconductor equipment has a market scale of nearly 200 billion yuan at present, with a low rate of localization, bringing Chinese companies a huge room for development, said Zhang Cheng, an expert with Huatai Securities Research Institute.
-- Demand for PV equipment continues to pick up
In recent years, with the launch of photovoltaic (PV) projects at home and abroad, market demand has continued to pick up, while prices of silicon wafers and battery pieces have also risen to varying degrees.
According to the research report by Northeast Securities, there are great demands for production expansion of PV silicon wafers, battery pieces and modules. Since August, many PV companies declared the production expansion plan, and relevant PV equipment companies are expected to be fully benefited.
Among them, A-share listed company Maxwell Technologies Co., Ltd., which is mainly engaged in complete set of equipment for solar cell screen printing production line, saw its net profit increase by 53 percent year on year in the first half of the year.
Another A-share company Shangji Automation saw its revenue pick up 270 percent year on year in the first six months, with the net profit up 57 percent year on year.
JSG, a leading semiconductor material manufacturer in east China's Zhejiang Province registered a year on year increase of 10 percent in first-half net profit.
According to JSG, semiconductor and PV industries maintained a high degree of prosperity in the first half of 2020, with better market demands.
--Wind power equipment manufacturers seize opportunities in a wave of installation rush
Affected by the decline of subsidy policies, domestic wind power industry will usher in a wave of installation rush in 2020.
According to the statistics from China Electricity Council, China invested 85.4 billion yuan in wind power projects from January to June, up 152.2 percent year on year.
With the investment boom, wind power equipment, and parts and components manufacturers recorded satisfactory performances.
Wind turbine manufacturer Mingyang Smart Energy saw its revenue and net profit increase of 107 percent and 59 percent year on year in the first half of 2020.
Besides, Titan Wind witnessed a year-on-year increase of 63 percent in its net profit in the first half of 2020.
Furthermore, benefited from current rapid development of the offshore wind power industry, Rainbow Heavy Insustries (RHI) saw first-half revenue increase 113.47 percent and net profit increase 63.16 percent year on year.
It is noted that wind turbine installation rush was mainly resulted from national policies on subsidies. The onshore orders of the wind power industry will enter the centralized delivery period in the first half of 2020, which fully releases the market demand.
(Edited by Jiang Feifan with Xinhua Silk Road, 346129473@qq.com)
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