Since the bottoming out in 2016, China’s rubber machinery industry continued to improve in 2017, with double-digit growth in sales revenue, a substantial increase in export earnings, and a significant increase in corporate profitability. According to industry insiders, the domestic and foreign tire companies are actively investing, and the demand for rubber machinery, especially high-precision intelligent rubber machinery, is improving. It is expected that China’s rubber machinery industry will officially enter the upward channel in 2018.
Rubber machinery enterprises’ sales revenue increased significantly
According to the statistics of rubber machinery professional members of China Chemical Equipment Association, in 2017, 24 major rubber machinery enterprises across the country achieved sales revenue of 7.735 billion yuan, an increase of 11.3%. By analogy, the total sales revenue of China’s rubber machinery industry in 2017 is expected to reach 10.65 billion yuan, an increase of 10.9%. This is the first year-on-year increase in industry sales revenue since 2015.
In 2017, the overall operating rate of China’s rubber machinery enterprises was relatively high, and the sales revenue of most enterprises increased. Among the 24 companies surveyed, there were 15 sales revenue growth, 8 declines, and the top 10 sales revenues were 6.54 billion yuan, accounting for 61.4% of total sales revenue, and industry concentration increased by 0.7%. Stronger and stronger.
Significantly enhanced profitability
Not only has sales revenue achieved substantial growth, but the profit of China’s rubber machinery industry has also increased significantly in 2017 compared with last year, and the industry’s profitability has increased significantly.
It is understood that 24 rubber machinery enterprises are all making positive profits, and profit growth enterprises account for the majority. In particular, the profitability of listed rubber machinery companies has improved significantly. For example, in 2017, the company achieved a profit of nearly 93 million yuan, while in 2016 it was a loss of 770 million yuan.
According to industry analysts, the driving force for profit growth is mainly the increase in orders and the improvement of product gross margin. However, it is worth noting that the price of raw materials has risen sharply, which has reduced profit margins.
Exports of foreign exchange increased significantly
According to statistics, in 2017, the export delivery value of 24 rubber machinery enterprises in China was 1.836 billion yuan, up 32.3% year-on-year. By analogy, it is estimated that the total export value of China’s rubber machinery industry will reach US$360 million in 2017, a year-on-year increase of 20%.
According to industry analysts, the growth of foreign exchange earnings from export is mainly due to the fact that China’s tire companies have responded to the US “double opposition” and established tire factories in the United States and Southeast Asia. The demand for rubber machinery has formed a small climax. At present, the enthusiasm of China’s tire companies to build factories overseas continues to ferment. According to preliminary statistics, more than 10 tire projects are starting or planning to start. In addition, the international tire market investment is stable, and there are more tire investment projects in Continental and Bridgestone, which also lays a foundation for the export of rubber machinery in China. The industry expects that China’s rubber machinery exports will continue to improve in 2018, and the degree of internationalization will be further improved.
Post time: Aug-24-2018