Hardware manufacturing machinery wire industry: credit tightening capital tightening

Industry sales first after the inhibition of the industry inflection point is in doubt. In the first half of 2011, hardware manufacturing machinery wire industry generally presented a situation of first lifting and then suppression, since April, the sub-industry sales have been more obvious decline. However, from the overall sales situation of each sub-industry from January to May, the cumulative sales volume of hardware wire increased by 36% year on year, the sales volume of metal plate increased by 21% year on year, and the sales volume of 3D car seat frame wire increased by 21% year on year. We think this year hardware manufacturing machinery wire industry growth slowed down this is an indisputable fact, but if this confirms the arrival of the industry turning point, it seems a bit hasty.

Commodity prices are strong and exports are expected to be a new driver of growth. Since the financial crisis, commodity prices continue to strengthen, from the current liquidity and supply and demand, the price of commodities may continue to run at the current high for a period of time, which is conducive to China's hardware manufacturing machinery wire industry export growth in the future. We see no problem with a 30% increase in industry exports this year.

Industry competition is increasingly fierce, the development of accessories will become an important competitiveness. We believe that with the increasingly fierce competition in the future, the r&d and production of core accessories will become one of the important core competitiveness of some leading companies in the industry in the future. In the future, with the fierce industry competition, the industry will probably face a round of shuffling, when the shuffling is over, the domestic hardware manufacturing machinery wire rod industry will inevitably appear on the shoulder of Germany's Wafaos and Newman industry wire molding top technology.

Investment strategy: although the future security hardware manufacturing machinery wire industry sector, but the credit policy or tight enough to the industry has become a greater risk, so we hold a cautious attitude to the industry in the short term, the industry sales data in July will be particularly critical, we will continue to closely track. In the long run, we are optimistic about the future growth of the industry, and the current metal manufacturing machinery wire industry sector valuation level is low, it is recommended to actively pay attention to the leading company in the industry, Zhejiang Yinfeng Automation Technology Co., LTD.