One of the two major sub-sectors of global construction machinery. Loaders are one of the two major sub-sectors of global construction machinery. They are included in scrappers together with bulldozers, loaders, graders, scrapers, etc., accounting for approximately 29% of global construction machinery. In most markets outside of our country, the sales scale of loaders is second only to excavators; in 2008, 20 of the world's top 50 construction machinery companies had wheel loaders in scale, second only to excavators.

　　 The domestic market is mature. As one of the most mature construction machinery products in China, after years of development, the current domestic market has about 700,000 wheel loaders, which are mainly distributed in infrastructure projects, real estate construction, public utilities, mining and mining, material transportation, In the fields of agriculture and forestry, more than 60% of the machines in use were sold during 2006-2008. At present, the annual sales volume of the whole industry is more than 140,000 units, and the industry’s production capacity exceeds 220,000 units. The domestic production and sales layout of major manufacturers has basically been completed, and the market demand is relatively stable. In general, the loader industry is already a fairly mature sub In the industry, the possibility of explosive growth in domestic sales is unlikely, the market for mid- and low-end products is fierce, and the concentration of industry brands will further increase.

　　 Overseas markets will become the focus of development. In recent years, as competition in the domestic loader market has intensified, many companies have set their sights on overseas and have established relatively complete sales networks and channels overseas. However, under the tremendous impact of the financial crisis, foreign demand for loaders has plummeted. In the first half of 2008, the export of loaders increased by an average of 138.81% per month. In the second half of the year, the financial crisis became more and more obvious. The rapid decline in exports has turned into a negative growth in October 2008. Demand in overseas markets remained sluggish in 2009, but with the gradual recovery of overseas economies, the future overseas markets will be an important development area for the loader industry. Companies in the industry are increasing their overseas network construction to improve overseas sales performance.

　　 Benefit from real estate and infrastructure investment. At present, the market is still seeking an uncertainty premium, and the recent good momentum in real estate sales has begun to drive the year-on-year growth of new real estate construction area, bringing real estate investment to the market to be fully launched in the second half of the year, and infrastructure investment is expected to continue high growth. Thereby driving the expectation of vigorous growth in demand in the construction machinery industry. Under this expectation, there are swing opportunities in the share prices of listed construction machinery companies. Among them, leading companies and companies directly driven by real estate investment will enjoy a valuation premium. Liugong [19.57 2.84%] and Xiamen Tools in the loader industry have good The performance is flexible, the buy rating of Liugong is maintained, and the rating of Xiagong overweight is maintained.