In the first 11 months of 2011, the machinery industry realized a sales value of 14.85 trillion yuan, a year-on-year increase of 25.4%, which was basically the same as in the previous October. In the previous October, the machinery industry realized an income of 13.28 trillion yuan, a year-on-year increase of 25.87% and a profit of 907.1 billion yuan. , an increase of 18.11% year-on-year, cumulative orders for key companies increased by 5.7% year-on-year, and earnings growth continued to fall. Based on the analysis of various factors, we expect the growth rate of the machinery industry will be closer to 20%-25% for the whole year, and the profit growth will be closer to 15%-20%.

The sales of main products of construction machinery are not good. The sales value of construction machinery for the first 11 months of 2011 was 529.47 billion yuan, a year-on-year increase of 35.28%, a slight decrease from the growth rate. In terms of main products, the excavator's November output was 18,300 units, an increase of -33.03% year-on-year, and the loader's November production was 22,900 units, a year-on-year increase of 5.72%. The annual sales growth of construction machinery sales is expected to be between 25% and 30%.

The growth rate of the gold-cutting machine tool fell back to less than 20%. In the first 11 months of 2011, the sales value of the domestic machine tool industry was 646.953 billion yuan, an increase of 33.02%, and the growth rate was slightly lower than the previous month. In the first 11 months, Jintai Machine Tool Co., Ltd. completed a total of 796,000 units, an increase of 17.67% year-on-year, including a total of 239,000 CNC machine tools, a year-on-year increase of 25.72%. The machine tool industry's annual sales growth is expected to be around 25%.

Heavy mining machinery maintained a steady growth of around 27%. In the first 11 months of 2011, the sales value of domestic heavy mining machinery industry was 764.96 billion yuan, a year-on-year increase of 27.25%. Among them, the output of metal smelting equipment in November increased by 86.71% year-on-year, and the cumulative growth in the previous November was 15.74% year-on-year. The output of metal rolling equipment increased by 74.46% in November from the same period of last year. The cumulative growth in the previous November was 24.75% year-on-year, indicating a significant recovery. Considering that the cycle of heavy mining machinery lags behind the entire machinery industry, it is expected that heavy mining machinery will be relatively stable in the near future.

Electrical appliances traditional products grow slowly. 2 In the first 11 months of 2011, the sales value of the domestic electrical and electronics industry was 3.89 trillion yuan, a year-on-year increase of 27.72%. The investment focus of the entire power grid is still distribution network automation, smart grid, rural power grid transformation, etc. Traditional power generation equipment and power transmission and transformation equipment slow growth.

Some emerging industries are gradually resolved. Wind power and PV are still in overcapacity; nuclear power safety planning has progressed, and new project approvals are expected to restart around March 2012; high-speed rail 7.23 EMU accident investigation results are announced. In 2012, the railway construction cost was about 400 billion yuan, and vehicle purchases were 860. About 100 million yuan, a slight decline year-on-year, the future railway construction will enter a stable stage.

Investment rating and risk factors. Maintaining the industry's long-term bullish ratings also suggests that the machinery industry does not have external conditions to obtain excess returns during the economic downturn.