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Based on the depth of grassroots research, is expected to November excavator sales are expected to double the growth rate in December is expected to close to 100%. According to the depth of our industry chain research, is expected to November excavator sales are expected to double, reaching 13 thousand and 500 units, the growth rate in December is expected to close to 100%, thus, the excavator sales is expected to nearly 140 thousand units. While the first quarter of next year, most of the domestic excavator OEM production plan increased more than 20%-30%, we expect the next year the annual growth rate will show a high to low, the whole year is expected in 15%-20%, strong industry fundamentals, is expected to continue to significantly exceed market expectations. We believe that the large-scale project construction cycle is long, with great inertia of engineering machinery industry is expected to exceed the demand, so the next big probability, which is from the main machine manufacturers a production plan for the quarter year-on-year growth can also be confirmed.  

High economic benefit from the industry, the core parts suppliers as aspect of import substitution. Many of China's hydraulic industry continued to maintain a state of deficit, with the industry strength, hydraulic components and parts of basic self-sufficiency in the field of high-end hydraulic parts of overseas products dependence gradually reduced to 2015, hydraulic industry trade deficit in 2011 from $2 billion 922 million down to $940 million. A substantial increase in the last more than 1 years of digging machine industry, the domestic excavator pump appears the contradiction between supply and demand, the host plant has a large domestic power steering hydraulic parts manufacturers, to be able to enter the domestic suppliers to OEMs supporting the greater good (such as Hengli hydraulic and Addie precision), but also on the market after the supplier is promoted the role (such as Addie precision and Ningbo saikesi).  

Development and Reform Commission issued "to enhance the core competitiveness of manufacturing industry (2018-2020) three year plan". Compared with the 2015-2017 three year plan, rail, marine and ocean engineering, agricultural and medical field has been basically completed the previous plan, put forward a new target in the field of automobile manufacturing and robot; greater emphasis on "intelligent" concept, networking, and the current AI technology development to match fast; at the same time, the new key materials, equipment, machine development are emphasized. In general, it is basically in line with the overall strategy of the current national manufacturing development.