UBS 瑞银： China Construction Machinery

01.19 76页 英文 rar

UBS Investment Research 19 January 2007

Secular growth at home and abroad
􀂄 Secular demand from infrastructure investment and exports China will invest over Rmb5.0trn on its transportation infrastructure in 2006-10, generating strong demand for construction machinery. This figure is 2.1x the amount spent in the past five years. As Chinese manufacturers have increased their competitiveness, they are gaining greater market share overseas. Exports have registered a 58% CAGR since 2002, and we expect the momentum to continue

Contents page
Summary and investment case 3
Industry analysis 5
Industry risks 20
Company pages 26
— Guangxi Liugong Machinery.........................................................................................27
— Investment case.....................................................................................................28
— Company risks .......................................................................................................32
— Financials ..............................................................................................................33
— Price target derivation ............................................................................................38
— Company background............................................................................................39
— Changsha Zoomlion Heavy Industry.............................................................................42
— Investment case.....................................................................................................43
— Company risks .......................................................................................................47
— Financials ..............................................................................................................49
— Price target derivation ............................................................................................54
— Company background............................................................................................55
— SANY Heavy Industry ..................................................................................................58
— Investment case.....................................................................................................59
— Company risks .......................................................................................................62
— Financials ..............................................................................................................63
— Price target derivation ............................................................................................68
— Company background............................................................................................69