In the first half of 2022, China's rubber machinery industry continued the structural bull market in 2020 and 2021. In the first half of the year, the sales revenue of China's rubber machinery increased by 5.1%, the export delivery value increased by nearly 65%, and the profit index improved significantly. Most companies in the industry had sufficient orders in the first half of the year, and the operating rate was relatively high, and the orders in the second half of the year were basically scheduled to the end of the year. It is expected that the rubber machinery industry will continue to be bullish in 2022 as a high probability event.
Sales revenue increased slightly
According to the statistics of the Rubber Machinery Professional Committee of China Chemical Equipment Association, in the first half of the year, the sales revenue of 20 major rubber machinery enterprises in the country was 3.801 billion yuan, a year-on-year increase of 4.8%. Based on this calculation, it is estimated that the total sales revenue of China's rubber machinery in the first half of this year is 5.62 billion yuan, a year-on-year increase of 5.1%. In the first half of the year, most enterprises in the rubber machinery industry experienced a boom in production and sales, and the operating rate maintained a high level. Among them, companies with higher sales revenue mainly include MESNAC, DXS, Sinochem Guilin Engineering, Wanxiang Xinyuan,TST, Guilin Rubber Machinery, Yiyang Rubber & Plastic Machinery, Qingdao Hailang Equipment, Fujian Tianhua Intelligent equipment and Wuxi Shuangxiang Rubber and Plastic Machinery, etc. Companies with more sales revenue growth include Qingdao Hailang, Wanxiang Xinyuan, and Guilin Rubber Machinery, all of which have increased by more than 20%. The sales revenue of the top three was 2.296 billion yuan, accounting for 40.9% of the total sales revenue, and the concentration increased by 0.7 percentage points. The sales revenue of the top ten was 3.22 billion yuan, accounting for 59.1% of the total sales revenue, and the concentration decreased by 2.2%. Judging from the production and sales of rubber machinery companies, the production and sales of products are mainly concentrated in engineering tire equipment, and the production and sales of passenger and truck tire equipment have dropped significantly compared with previous years. From the current point of view, most companies in the industry are basically full of orders in the second half of this year, but due to the cancellation or delay of some tire projects, some rubber machinery orders have been cancelled or delayed in delivery. In the second half of the year, the rubber machinery industry received fewer orders, and some enterprises had a small gap in production. Combining the above factors, it is expected that the sales revenue of the rubber machinery industry will increase in single digits in 2022.
Profit increased significantly year-on-year
According to the statistics of the Rubber Machinery Special Committee, in the first half of the year, the profits of 20 major rubber machinery factories increased by 70% compared with the same period last year, and there were 4 loss-making enterprises. The profits of the four listed companies, MESNAC, TST Technology, Xinyuan Technology, and Lanying Equipment, have increased significantly year-on-year. From the overall situation, the profit growth was mainly due to the increase in sales of rubber machinery and the moderate decline in the prices of raw materials such as steel. In the first half of this year, the sales rate of rubber machinery enterprises maintained a relatively high level. The output value of new products of the declared enterprises increased by 20% year-on-year. The price of raw materials such as steel continues to decline, and the gross profit margin of the rubber machinery industry is expected to improve. From the current point of view, in the second half of the year, orders in the rubber machinery industry are mainly concentrated in engineering tire equipment, and the gross profit rate is relatively high. It is expected that in 2022, the industry profits will increase significantly year-on-year, and the profitability level is expected to continue to increase.
Foreign exchange earnings from exports increased by nearly 60%
According to the statistics of the Rubber Machinery Special Committee, in the first half of the year, the export delivery value of 20 major rubber machinery factories was 1.14 billion yuan, a year-on-year increase of 66.7%. Based on this calculation, the total export earnings of China's rubber machinery industry in the first half of the year were 200 million US dollars, a year-on-year increase of 60%. It is understood that companies with high export delivery value include MESNAC, Dalian Rubber & Plastic Machinery, Tianjin Saixiang Technology, Qingdao Hailang Equipment, Sinochem Guilin Engineering, Yiyang Rubber & Plastic Machinery, Guilin Rubber Machinery and Guilin Zhonghao. The ratio of the total export delivery value of the enterprises participating in the report to the total sales revenue of the industry was 30%, an increase of 10.3 percentage points over the previous year. Industry insiders believe that the main reason for the increase in exports is that since last year, China's tire industry has launched more new and expanded tire projects abroad, especially in Southeast Asia, and has more demand for rubber machinery. Rubber machinery companies have undertaken a large number of overseas tire investment orders. At the same time, foreign epidemic control has been relaxed, tire investment has rebounded, and the demand for China's rubber machinery has increased. In addition, the devaluation of the RMB is also conducive to China's rubber machinery exports to earn foreign exchange. However, overseas investment in China's tire industry has slowed down since this year. This will have a certain impact on the export of rubber machinery in the second half of the year. It is expected that the export of the rubber machinery industry will continue to improve in the second half of 2022, and it is a high probability event to maintain double-digit growth throughout the year.
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