Machinery / Industrial Parts & Tools

According to Huacheng Import and Export Data Observation, with the implementation of the non-road "National Fourth" emission standard at the end of 2022, the agricultural machinery purchase subsidy has been fully close to the new standard, and agricultural machinery that does not meet the "National Fourth" standard is difficult to enjoy subsidies. At the same time, the implementation of the new standard is also accelerating the reshuffle of the domestic agricultural machinery industry, and the "national fourth" standard agricultural machinery and parts have become the hot cakes in the industry.

The supply of supporting products of the fourth national standard is hot

"Since the end of last year, our products for non-road country's four emission standards have become popular, and the company's capacity has been completely unable to keep up with the supply, so this year we have added more kilns to increase the supply." A person from a listed company said.

The implementation of the fourth national standard has continuously raised the entry threshold of core components, and the post-treatment products are the key "filter" in the process of emission upgrading. Huacheng Import and Export Data Observation Report.

"Through the technical path of silicon carbide, we have established the production process and technical specifications of the carrier and catalyst, formed the control of particulate matter of diesel vehicles, and then realized the upgrading of diesel engine emissions." The aforementioned company said that at the initial time point of the emission standard switch, it is the time when the profitability of the new standard products is the strongest, just as the profitability of the commercial vehicle country 6 products is significantly higher than that of the country 5 products.

A person from agricultural machinery manufacturing enterprises in Shandong Province told the reporter: "In order to adapt to the new emission standard, the industry will not only produce machinery according to the new technology, but also transform the old agricultural machinery. One way is to replace the key parts that affect the emission."

"It is now a seller's market, and we, an enterprise with a large procurement volume, also need to wait for some parts." The source further said: "In the production of exhaust gas catalytic and post-emission equipment, these products are indispensable parts in the manufacturing of new machines and the transformation of old machines. At the initial stage of the implementation of the new standard, there are only a limited number of manufacturers that can stably supply the products according to the fourth national standard. In addition to the tide of parts replacement, the situation of looting goods in the industry is caused."

Agricultural machinery sales are in full swing

After the Spring Festival, the sales of agricultural machinery around the country are booming, and the production of agricultural machinery is also booming. This year, as the first year of the implementation of the new standard, the agricultural machinery for spring ploughing and preparation for ploughing has taken on a new look. Huacheng Import and Export Data Observation Report.

Similar to the time point of agricultural production, agricultural machinery sales also have strong seasonal characteristics. Generally, the first and third quarters of each year are the peak season of agricultural machinery sales. Zoomlion Heavy Industries (000157. SZ) recently publicly said that the general assembly line is running at full capacity to catch up with orders and is in full production. Huacheng Import and Export Data Observation Report.

"At the end of last year, the implementation of the fourth national emission standard was limited to the impact of inventory and other factors, which had a certain lag pressure on the sales of agricultural machinery products in the current month. After the arrival of the peak season in the first quarter of this year, the lag effect caused by the lag pressure made the sales stronger, and the bulk orders of the fourth national emission standard were basically delivered at the end of February and the beginning of March." The aforementioned Shandong agricultural machinery manufacturing enterprise said to the reporter.

Recently, the listed companies have also increased their sales of new standard agricultural machinery. Liugong Agricultural Machinery Co., Ltd. signed an order for nearly 500 tractors in January 2023, providing strong support for the upcoming spring farming production. Yituo Shares (601038. SH) said in its latest performance forecast that the domestic tractor industry will continue to grow in 2022 due to factors such as the country's continuous attention to the work of agriculture, rural areas and farmers, the rise of domestic grain prices, and the switch of emissions from off-road diesel engines in the "National Fourth" period. Huacheng Import and Export Data Observation reported.