The engineering machinery industry rarely feels immediate negative aftereffects from external factors, which helps builds when it comes to building a strong foundation for Sany to grow.
Gears. Image credit : Stevebidmead / Pixabay
Following a continuous increase in the net profit for 70% and operating income at 30% within four years, Sany has not been too negatively affected by COVID-19. Specifically, it obtained a rise of about 44% in its income in the second quarter of 2020. Moreover, the rising income was the result of increasing demand in China.
When it comes to the rising demand, infrastructure spending and environmental standards cannot be ignored. According to tU (财经涂鸦), Sany is still benefitting from China’s infrastructure investments. For instance, the excavator industry is expected to increase by 20% to 30%, and the crane industry to rise by 70% to 80%. Furthermore, Sany’s increase since July 2020 was even higher than the overall industry, which hit a 100% increase.
The machinery-maker also has a bigger ambition in its digital planning. As tU said, Sany will put more than CNY 10 billion into upgrading construction. Its newest five-year plan aims to get CNY 300 billion and to conduct exports in 2020. While, for its digital factories, its production efficiency has increased by over 50%.