The Chinese rubber machinery industry has turned to be better since 2016 when it hit the bottom. In the first half year of 2017, major indexes totally changed to be positive and the sales revenue achieved a double-digit growth with a substantial increase in export for earning foreign exchange and a sharp increase in the profitability of enterprises. In the second half year of 2017, most rubber machinery enterprises have sufficient orders. It is predicted that the rubber machinery industry will face a “bright future” for the whole year with over 10% increase in sales revenue, over 50% increase in export for earning foreign exchange and a substantial increase in profit.
Two-digital Increase in Income
According to the statistics of China Chemical Industrial Equipment Association Rubber Machinery Professional Committee on 23 major rubber machinery manufacturers in China, in the first half year, the realized sales revenue was RMB 3.56 Billion Yuan, which increased by 13.4% (on a year-on-year basis, similarly hereinafter). Based on this, it is estimated that the realized sales revenue of the Chinese rubber machinery industry reached RMB 4.65 Billion Yuan with an increase of 13.7% in the first half year. This was the first increase in sales revenue of the rubber machinery industry since 2015. The “small climax” of orders in the rubber machinery industry in the second half year of 2016 led to the high rate of operation in the industry this year, and quite a lot of enterprises ran under full production.
Ranked by the sales revenue, top ten enterprises are respectively MESNAC, Dalian Rubber & Plastics, Fujian Sino-Rubber Machinery, Doublestar Machinery, Yiyang Rubber and Plastics, Guilin Rubber Machinery, Tianjin Saixiang, Guilin Engineering, SINOARP (Suzhou) and New Universal in turn. The sales revenue of top ten enterprises were RMB 3.11 Billion Yuan, accounting for 66.9% of the gross sales revenue, and the concentration ratio of the industry rose by 6.2%, showing a phenomenon that “the strong become stronger”.
Changing Profitable Situation
The statistics on the reporting enterprises show that the profit increased by over 400% substantially, and the profitability of the industry strengthened obviously in the first half year. In particular, three listed enterprises including MESNAC, Saixiang Technology and New Universal Science and Technology, had an obvious improvement in profit, in which the profit of MESNAC increased by 234%, that of Saixiang Technology increased by nearly 300% substantially, and that of New Universal Science and Technology increased by 37.66%. Only two enterprises had a loss.
The profit increase of the rubber machinery industry is mainly caused by the increase in orders and improvement in gross profit rate of products. Besides, some enterprises benefit from the extra profit arising from the delivery delay in 2016.
The employees of the industry decreased in double digit continuously, which is mainly driven by the improvement in automation degree and level.
The production value of new products of the enterprises listed in the statistics rose by 17.7%, which is a result of the progress in technical innovation, transformation and upgrading of the industry in recent years.
The sales rate of products have improved and the product inventory of enterprises shows an obvious declining trend.
In the second half year of 2017, most of the orders form a scale with relative good quality, which is good for improving the profitability of enterprises. However, the substantial increase in the price of raw materials compresses the profit space of the rubber machinery enterprises.
Improvement in the Degree of Internationalization
The statistical data of the reporting enterprises show that the realized export delivery value was RMB 917 Million Yuan in the first half year, which increased by 98.3%. Based on this, it is estimated that the gross export for earning foreign exchange of the Chines rubber machinery industry was USD 160 Million with an increase of 95%.
Ranked by export delivery value, top 10 enterprises are respectively MESNAC, Guilin Rubber Machinery, Tianjin Saixiang, SINOARP (Suzhou), Yiyang Rubber and Plastics, Guilin Engineering Company, Dalian Rubber & Plastics, Guilin Lihao, Sichuan Yaxi and Wuxi Double Elephant. The export delivery rate (value) of the enterprises listed in the statistics reached 23.6% with an increase of 3.3%.
In 2016, to respond to the American “Double Anti” policy, Chinese tire enterprises successively launched the project of building plants abroad, which created a small upsurge for the demand for rubber machinery. Most of these orders were delivered in the first half of this year. In the first half year of 2017, some of these overseas projects were stopped or delayed. Therefore, it is predicted that the export delivery value of rubber machinery from the overseas tire project will face a declining trend in the second half year compared with that in the first half year. However, the investment made by big international tire companies is very stable, and German Continental and Bridgestone make investment in lots of projects, laying a good foundation for a positive trend in the export of the Chinese rubber machinery.
Therefore, it is predicted that in the second half year, the export trade of the Chinese rubber machinery will keep a good prospect, the degree of internationalization in the Chinese rubber machinery industry will be further improved, and a new historical height will be created in the export for earning foreign exchange.
