The financial crisis machinery industry investment strategy for the fourth quarter report

1. Mechanical plate in the third quarter market performance remains weak trend continued cost pressure in the third quarter was slightly reduced in the case of the market is still bearish machinery industry, machinery sector index fell by more than broad market index, market performance remains weak trend continued in the first half.

2. At present the industry demand growth and profitability of the machinery industry continued to decline 1-8 month sales output value and export delivery value of the growth rate continued to decline, internal and external demand gradually slow down; machinery five sub-sectors with a growth rate of 1-8 month profit -5 down by a big margin compared to the month, far exceeding the national industrial enterprises above designated size decreased profits, we believe that companies will not optimistic about the three quarterly, four-quarter profit growth, or machinery industry will slow down slightly.

3. The industry operating environment tend to be lenient in September Machinery Industry PMI index has improved, demonstrating the industry pressure to reduce the signs of a cyclical; domestic steel city, fell into the channel, machinery industry cost pressures have been alleviated; the central bank within one month, Two interest rate cut, showing the tight monetary policy has been fully relaxed, which will help alleviate the financial burden on machinery enterprises, improving corporate financing environment to avoid further deterioration of its profits.

4. September machinery industry investment strategy of the domestic machinery industry will continue short-term fatigue, environmental degradation, external demand will likely exceed expectations. Therefore, the fourth quarter outlook, machinery industry, demand and profitability continue to face pressure on profit growth is expected to be slightly down, the industry really need to wait until warmer in 2009, we maintain the industry "neutral" rating. Industry, a number of high-qua