Weichai Power: The biggest beneficiaries of heavy truck demand

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Heavy truck market is not thin off-season. According to the follow-up research on the product sales information of several mainstream heavy truck manufacturers in China, the number of heavy truck product orders surged in 2010. It is estimated that the sales of heavy truck products in January could reach 60,000 units, which is far better than the same period in 2009. At the same time, it is also significantly higher than the highest sales in January in history.

The continued strong demand for road freight heavy truck products is an important driving factor for the sales of heavy truck products. According to the sales structure of the current orders, sales of highway heavy trucks accounted for more than 70% of sales, which was the first driving factor for strong demand for heavy trucks. We believe that the strong demand for highway heavy truck products is related to the following four factors: 1) The cancellation of road maintenance fees began in January 2009, and the breakeven point for heavy truck transporters has been significantly reduced: 2) The 4th Quarter to the Spring Festival is the road freight industry. The traditional high season; 3), the freight volume, weather, and oil prices contributed to the significant increase in the price of road freight. We believe that in 2010, driven by continued growth in investment and consumption, the road freight industry will maintain a relatively high degree of prosperity, which will drive the demand for heavy cargo trucks of road freight to maintain a high level of prosperity throughout the year.

Demand for civil engineering heavy trucks was released ahead of schedule. Heavy-duty civil engineering products represented by dump trucks, due to the time required to add coats to the refitting factories, need a period ranging from 1 month to 1.5 months. Therefore, dealers and remodeling plants often need to be ahead of the peak season by more than 1 month in advance. Get a heavy-duty chassis so that it can be quickly sold to customers in the peak season. According to the feedback of the mainstream heavy truck brand dealers we followed, civil engineering heavy truck transporters are currently actively placing orders, showing that civil engineering freight demand is very strong, indicating that after a year of preliminary preparation, a large number of local infrastructure projects began to enter the construction phase.

Weichai Power will fully benefit from the improved sales of road freight heavy truck products and improved product sales structure. Due to large engine horsepower, good product durability, and relatively light weight of the vehicle, the major downstream vehicle makers of Weichai Power, such as Shaanxi Heavy Duty Truck, Foton Motors, and Northern Mercedes-Benz, have a clear competitive advantage in the heavy-duty truck market. These companies' heavy truck products accounted for nearly 50% of the market's weight for road freight heavy truck products. When the road freight heavy truck product market continues to prosper, the sales of Weichai Power's products will fully benefit.

At the same time, due to the prohibition of overloading, heavy-cargo transporters of road and freight freight are hoping to compensate for the loss caused by overloading by increasing the transportation efficiency, so heavy-duty heavy trucks are increasingly favored by heavy-duty truck transporters; multi-gear transmissions and the National III engine With the combination of improved fuel economy, the sales of heavy-duty trucks equipped with high-powered engines and multi-gear transmissions will continue to increase, while high-horsepower engines and multi-gear transmissions are precisely the Weichai power market. There are competitors' products.

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