ZOOMLION HEAVY INDUSTRY (000157.SZ) intends to develop heavy truck and agricultural machinery business

Date:2011-10-18baixiaomei  Text Size:

Construction machinery industry encountered downturn in 2011, especially since May, market demand for excavator, loading machine, bulldozer, crane and concrete machinery, etc., has kept declining to varying degrees. Moreover, it further dropped in July.

Influenced by the industry downturn, growth rates of ZOOMLION HEAVY INDUSTRY has been sharply decreased in 2011Q3. It is estimated that growth rate of net income will be around 30%-50%, which will be far less than 110.13% in 2011H1. 

Seeking for high business growth, ZOOMLION HEAVY INDUSTRY will develop heavy truck and agriculture machinery business while maintain its construction machinery business. Heavy truck will be the priority. 

There are two reasons for ZOOMLION HEAVY INDUSTRY considering heavy truck business as followed: firstly, demand for heavy truck from for concrete machinery and sanitation machinery is very huge. Secondly, as a special vehicle manufacturer, its garbage carrier vehicle and truck crane all need engine and gear box, it can produce and market by itself if developing heavy truck. While it sees huge potentials in setting foot on agriculture machinery, especially with the fast modernization in rural areas. ZOOMLION intends to set up research institute in the United States for research of agriculture machinery production.

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