On February 4th, Premier Wen Jiabao of the State Council presided over the State Council executive meeting to review and pass the equipment manufacturing industry adjustment and revitalization plan in principle. The plan pointed out that to speed up the revitalization of the equipment manufacturing industry, it is necessary to rely on the national key construction projects to carry out large-scale technical equipment autonomy work on a large scale; to increase the technological innovation investment, enhance the independent innovation capability of enterprises, and substantially improve the basic supporting parts and basic technological level; Accelerate mergers and acquisitions and product upgrading, promote the optimization and upgrading of industrial structure, and comprehensively enhance industrial competitiveness.
Zhang Jincan, an analyst at Guotai Junan Machinery Industry, said that the content of the adjustment and revitalization plan is more specific and pragmatic, and the practicality is beyond expectations, and the benefits of enterprises will be more direct. The policy has three highlights, including emphasis on support for basic components; emphasis on accelerating mergers and acquisitions; emphasis on key projects and key projects to support the revitalization of the equipment industry.
Zhang Jincan pointed out that among the three major highlights, the support for the basic components is emphasized in the recent policies, and there are not many inks in the previous policies. For a long time, subject to the industrial foundations of research and development, materials, and processes, the field of basic parts has always been a shortcoming of many sub-sectors of machinery. Without the support of external forces, the industry itself needs to accumulate for a long time to keep up with the needs of the host enterprises. The government’s focus on this area is crucial.
Ye Zhigang, chief analyst of Haitong Securities Machinery Industry, also said that the most impressive items in the draft opinion draft related to major equipment and basic components, especially the basic components, were placed in a very important position for the first time. At present, the basic components of the domestic construction machinery industry rely on foreign imports and are subject to people. The state will give financial support like the steel industry in these key upgrades. In the major equipment manufacturing industries such as nuclear power and new energy, the company will give preferential treatment to enterprises for purchasing high-end and environmental protection equipment; and it may also give certain preferential treatment to domestic users for purchasing domestic machinery and equipment.
Although the benefits of the central manufacturing industry in the equipment manufacturing industry are expected to be significant, most industry insiders believe that there is no specific stimulus measures for the revitalization plan of the equipment manufacturing industry, mainly directional and policy adjustments. CICC analyst Luo Wei also said that the introduction of the equipment manufacturing restructuring and revitalization plan did not bring more than expected content to the market. Since the end of 2008, the market has been looking forward to revitalization planning. The content of the revitalization plan has been in many media. It has also been reported repeatedly that the stock price of the relevant sector has also been fully reflected, and it is estimated that this further stimulation of the stock price will be limited. Zhang Jincan pointed out that since the equipment manufacturing industry involves many industries, this policy does not propose many specific numerical targets like other industries. However, the keynote has been set, and it is expected that there will be detailed policies in the follow-up.
Zhang Jincan expects that follow-up policies and beneficiary industries may mainly appear in three areas. The policy proposes to arrange industrial revitalization and technological transformation in the new central investment, and thinks about the attention to basic components. It can be said that there will be further policies in this field; the policy also proposes to establish the use of the first domestic (set) equipment risk. The compensation mechanism, equipment, heavy equipment, nuclear power and other equipment areas will be more obvious; the policy will increase the export credit line, support the export of equipment products, and the key components and raw materials that are necessary to be imported, exempt from customs duties and import value-added tax, The shipbuilding industry may benefit from the export credit policy, and the construction machinery industry may benefit from the preferential tax policy for parts and components.
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