Agricultural machinery enters the policy dividend period the market share of domestic agricultural machinery products

A few days ago, it was reported that a roadmap for the development of China's agricultural equipment in the next decade has been drawn. According to the technology roadmap for the key areas of "made in China 2025", by 2025, the total output value of agricultural industry will reach 800 billion yuan, the market share of domestic agricultural machinery products will be more than 95%, and the market share of high-end products such as large tractors and cotton pickers with more than 200 horsepower will reach 60%.

At present, the first draft of the 13th five-year Plan for China's agricultural machinery industry has also been completed and is expected to be issued early next year.

In addition, in August this year, in order to promote the transformation of the mode of agricultural development and speed up the process of agricultural modernization, the Ministry of Agriculture has issued the "opinions on promoting the whole process of Mechanization in the production of Major crops". We will strive to achieve more than 68% of the comprehensive mechanization of crop cultivation and harvest in 2020, of which the comprehensive mechanization of the three major grain crops has all reached more than 80%. The level of mechanized plant protection control, mechanized straw treatment and mechanized drying treatment has been greatly improved. Taking the main producing areas of grain, cotton, oil and sugar as key areas, we will build about 500 demonstration counties that are the first to basically realize the whole process of mechanization of production, and promote them throughout the provinces where conditions permit.

Industry insiders said that an important way to speed up agricultural modernization is to improve the degree of agricultural mechanization and scale. Agricultural machinery industry is the material basis of agricultural development. The development of agricultural machinery industry is of great significance to increase agricultural production, increase farmers' income and ensure national food security. At present, it has become an important topic for China's agricultural machinery industry to vigorously develop the agricultural machinery industry, promote the transformation and upgrading of China's agricultural machinery industry, and develop to a new type of efficient agricultural machinery.

With the support of national policies and funds, the development of agricultural modernization continues to accelerate, listed companies involved in modern agricultural machinery production will usher in a broad space for development, and the recent market performance of such individual stocks is also relatively active. According to the statistics of a reporter from the Securities Daily, all 14 tradable agricultural machinery concept stocks have risen since November. Xingguang Agricultural Machinery, Su Changchai A, New Territories pump industry, Axial Research Technology, Xinjiang Tianye, Yueda Investment and other six stocks all rose more than 10% during the period, reaching 24.44%, 19.91%, 19.78%, 19.52%, 12.50% and 10.81%, respectively.

What is worth mentioning in the above stocks is Xingguang agricultural machinery, the company's main products are the research and development, production and sales of combine harvesters, the main products are Xingguang series combine harvesters, which can be used for harvesting crops such as wheat, rice and rape. It is the mainstream model of domestic rice and rape combine harvester, and it is also one of the two major varieties of wheat combine harvester. The company sold 8189 combine harvesters in 2014. According to the industry ranking certificate issued by China Agricultural Machinery Industry Association, the company ranks third in the industry according to the number of self-propelled grain combine harvesters sold. Northeast Securities believes that China's agricultural mechanization still has a long way to go. In addition to consolidating the market share of existing products, if the company can cut into some underdeveloped segments by means of talent introduction and extension mergers and acquisitions, the future will be broad. The company's earnings per share from 2015 to 2017 are expected to be 0.58 yuan, 0.64 yuan and 0.77 yuan respectively, maintaining the "recommended" rating.

Yesterday, under the above positive support, seven agricultural machinery concept stocks still rose against the market, of which Smart Agriculture and Su Changchai A rose by more than 2%, 2.98% and 2.36% respectively. In addition, stocks that have risen are Longxin GM (0.59%), Yueda Investment (0.45%), Xinyan shares (0.33%), Jifeng Agricultural Machinery (0.18%) and Xingguang Agricultural Machinery (0.13%).

In fact, it is not difficult to find that at present, agricultural machinery has entered a policy dividend period. The national gold securities table shows that with the transformation of the agricultural machinery industry to full-process, large-scale and intelligent, companies with technological advantages are expected to further enhance their concentration. It is suggested to grasp the investment opportunities in the agricultural machinery industry from two main lines: one is the agricultural machinery companies in the blue ocean or quasi-blue sea industries, such as corn harvesters, water-saving irrigation equipment, agricultural pumps and other sub-industries; the other is to embrace the transformation and upgrading of agricultural machinery companies, which will bring opportunities for higher valuations.