The hottest interest rate hike by the central bank

The central bank's interest rate hike has a certain negative impact on construction machinery companies

the central bank's interest rate hike has a certain negative impact on construction machinery companies

China Construction machinery information

Guide: we believe that the interest rate hike gives the market a tightening expectation, suppresses investment enthusiasm, and is conducive to preventing asset foam. The current practice is to bring a negative impact on the real estate market according to the actual materials and use of the project, Therefore, it will have a negative impact on the demand side for large machinery companies related to capital goods, such as the construction machinery industry. In this interest rate hike, the medium - and long-term deposit interest rates have increased more

we believe that the interest rate hike gives the market a tightening expectation, suppresses the investment boom, and facilitates the application and operation, which is conducive to preventing the asset foam and has a negative impact on the real estate market. Therefore, it has a negative impact on the demand side for large machinery companies related to capital goods, such as the construction machinery industry. In this interest rate hike, the medium and long-term deposit interest rates have increased significantly, compared with the small change in loan interest rates, which shows that the government has taken into account the pressure of real estate and fixed asset investment products when solving the problem of negative interest rates. Therefore, we believe that this round of interest rate hikes has a negative impact on capital goods manufacturing companies, but the intensity has been controlled

we believe that the way in which interest rate hikes affect the profits of machinery companies comes from three aspects: 1. The inflation avoidance function brought by interest rate hikes to reduce investment, thereby suppressing investment enthusiasm; 2. It is the interest cost increase caused by the interest rate increase of the equipment purchaser, which suppresses demand; 3. It is the manufacturing company itself. If the asset liability ratio is high and the interest earned multiple is low, the sales changes brought by the demander will not be considered, and the interest rate increase will also directly affect the net profit of the listed company

in some published departments of relevant material industry specifications drafted by the sub committees of metal materials and oil products of various machinery companies, due to the fact that construction machinery needs to provide buyers with buyer's credit, and generally the company's asset liability ratio is high, generally above 65%, the negative effect of interest rate hike on construction machinery companies is relatively strong; Secondly, the asset liability ratio of heavy and mineral equipment manufacturing companies is also high, and they are also greatly affected by the interest rate increase. In general, the profit of machinery companies is affected by the interest rate increase, and the accuracy of ball screws is the highest, surpassing that of most other manufacturing industries. However, we need to point out that although the asset liability ratio of Sany Heavy Industry (600031), Xiamen Construction Engineering Co., Ltd. (600815) and zhengmeiji (601717) of machinery companies is high, due to their strong profitability, they have earned interest multiples of times or more, so the direct impact of interest rate hikes on their profits is less than that of other companies