What’s New:According to China Machinery Business Online, Chinese wheel loader sales declined-6.6% Y/Y in March (-34.1% in March 2012) to approximately 24,600units. This compares to a decline of -53.9% in February and +23.4% in January -monthly figures that were likely distorted by the timing of the Chinese New Year holiday. YTD, March wheelloader sales declined -19.0%.
Conclusion: Whilst the decrease in wheel loader sales in March was only -6.6% Y/Y, we highlight thatthis figure is off relatively easier comparisons from a year ago when wheel loader sales declined -34.1%. That said, any recovery heading into the key peak selling season coming up will likely benefit Lonking (3339.HK, Not Rated) given that loaders constitute ~65% of total sales. However, recent weak macroeconomic data and Zoomlion’s recent profit warningkeep us on the sidelines for now and we advise investors to await a better entry point.
3.0 m3 wheel loader
1.0 m3 backhoe loader