Agricultural subsidies increased by 16.3% year-on-year in 2013

In 2013, the target rate of agricultural mechanization in China was 59%, of which mechanized rice planting and corn harvester levels increased by 3 and 5 percentage points respectively. There was a breakthrough in the mechanized production of rapeseed, sugarcane, cotton and other large-scale cash crops. However, we The rate of agricultural mechanization is still very low, and the gap between different crops is too great.

Policy support continues to strengthen and reflect tendencies

China’s “No. 1 Document” has been related to agriculture for 10 consecutive years. With the support of policies, the subsidies for purchasing agricultural machinery increased from 0.7 billion yuan in 2004 to 21.5 billion in 2012, a compound annual growth rate of 105%, which promoted the development of the agricultural machinery industry. This year's subsidy is expected to increase by 16.3% over the previous year by more than 25 billion, and will continue to tilt toward corn harvesters, high-horse power tractors, cotton harvesters and so on.

Corn Harvester: Opportunity and Competition

In 2012, the corn yield in China was only 40%, and there is still ample room for growth. In 2012, the output of corn harvesters in China reached 1.1 million units. The year-on-year increase was 101%, of which 40% of the aircraft and above had a 60% increase. With the subsidy policy continuing to tilt towards corn harvesters, it is expected that the industry will still grow by around 30% this year. However, competition is expected to increase as more manufacturers enter and production capacity enters the release period.

Tractor: Dragging and dragging quickly

In 2012, the output of large and medium tractors in China reached 460,000 units, a year-on-year increase of 15.3%, of which 100 horsepower or more was expected to increase by about 50%. With the expansion of large-horsepower tractor subsidies, deep-rooted site preparation promotion and user structure changes, the industry upgrade will continue. However, as more manufacturers enter, competition will intensify. The market for small tractors is mature and the competitive landscape is stable.

Agricultural Water Pumps: Focus on Factors that Promote the Growth of Insured Quantity

With the construction of farmland water conservancy projects, the construction of rural drinking water safety projects, and the improvement of the living standards of farmers, the demand for agricultural water pumps will increase. We believe that the growth rate of the industry in the next few years will still be around 10%-15%. Since the industry is a fully competitive industry, special attention must be paid to the impact of fluctuations in raw material prices of copper and silicon steels on profitability.

Agricultural Machinery Listed Company Profile: At present, the A shares listed on the agricultural machinery mainly include the new research shares, which mainly include corn harvesters, and the tractors that produce various types of tractors, as well as domestic agricultural water pumps leading the New Territories pump industry. Among them, the New Zealand pump industry is far ahead of its competitors in channel and brand construction. It has developed and verified the ability to transform its advantages into performance in the past five years. It acquired Zhejiang Bohua to enter the sewage treatment and environmental protection industry and formed a new growth point. It is expected that the compound annual growth rate in the next three years will be expected. Up to 30%, highly recommended.