Construction machinery sector in August performance weaker than the broader market. Construction machinery fell by -6.22% in August, the Shanghai Composite Index fell by -5.46% in the same period, and the CSI 300 index fell by -4.81%. The construction machinery sector underperformed the broader market. At present, the overall PE of the construction machinery sector is about 15-16 times, and the overall PB is about 3.2 times, and the valuation level is in the past


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Xugong Machinery 20.92+0.291.41% Shantui shares 13.34+0.141.06% Liugong 17.10+0.140.83% Sany Heavy Industry 15.50+0.090.58% Zoomlion 10.10+0.010.10% near the historical average. Although the valuation of the construction machinery sector is relatively reasonable, the market's concern about declining demand has seriously affected the performance of the construction machinery sector.

The growth rate of fixed asset investment declined significantly. From January to July, the cumulative investment in fixed assets reached 15.2 trillion yuan, a year-on-year growth of 25.4%, and the cumulative completion of new fixed asset investment reached 6.1 trillion yuan, a year-on-year growth rate of 33.2%. From January to June, the cumulative investment in fixed assets and the cumulative completion of new fixed asset investment grew by 27% and 38.4%, respectively, and the growth rate of fixed asset investment declined significantly.

The construction of affordable housing has hedged some of the declining demand for commercial housing investment, but the growth rate of railway investment has dropped sharply due to the impact of the black Swan events of the railway series.

Sales of construction machinery continued to decline in July. In July, the sales volume of excavators was 7,665 units, down 14.49% year-on-year, and the sales volume of loaders was 16,167 units, up 2.17% year-on-year, down 15.97% month-on-month.

Cranes 2,828 units, down 19.66%, bulldozers sales 761 units, down 20.81%. Overall, the growth rate of construction machinery continued to narrow, and the decline expanded.