The domestic corn farm machinery market has broad prospects

Xinyan Co., Ltd. is the largest agricultural machinery manufacturer in Xinjiang, and it has maintained its leading position in such domestic market segments as self-propelled corn harvesters and silage and forage harvesters. Analysts believe that the company's 2011 performance growth is in line with expectations, benefit from the policy support and the increase in the rate of agricultural mechanization, the company's future high growth is expected to continue.

According to the company's performance forecast, the net profit attributable to the shareholders of the listed company in 2011 was 75 million to 81 million yuan, an increase of 45.16% to 56.78% over the same period of the previous year.

According to statistics, sales of self-propelled corn machines in China were around 15,000 units in 2011, an increase of over 80% year-on-year. New research shares sold about 980 self-propelled corn machines, a year-on-year increase of more than 50%. It is estimated that the sales volume of self-propelled corn machines in China will be around 25,000 units in 2012, an increase of 60% year-on-year. The sales volume of new research shares is expected to reach around 1,500 units, an increase of 50% year-on-year.

National Securities analysts believe that the company's income in the corn harvester contributed about 70%, is currently the leading product. In 2010, domestic corn harvesters sold 48,000 units, a year-on-year increase of 43.67%. The 2011 corn harvester officially entered the general agricultural machinery subsidy list, and the sales situation continued to be hot.

Analysts believe that the purchase of agricultural machinery subsidies is the core driving force for the growth of corn harvester demand. In 2011, the scale of subsidies for central government agricultural machinery purchases was 17.5 billion yuan, which was a year-on-year increase of 13% compared with 15.5 billion yuan in 2009, equivalent to about 250 times of 2004's 0.7 billion yuan. In November 2011, the central government allocated 13.69 billion yuan for the first batch of agricultural machinery subsidies in 2012, which is about 20% more than the first batch of subsidies in 2011.

From the perspective of development prospects, the increase in corn planting area and corn machine yield will continue to stimulate demand for corn machines.

Corn has become the largest crop in China. Everbright Securities analysts said that the increase in corn planting area is related to the widening of downstream uses and rising demand. In addition to food demand, corn is the longest processed chain in food crops and the most processed product. China's corn processing products have reached more than 200 species.

The data show that in 2011, the domestic corn harvester had more than 170,000 units, and the machine harvested 168 million mu of corn. The machine yield increased from 2.5% in 2004 to about 33%. Some analysts predict that in the next 5-8 years, the domestic corn machine yield is expected to reach a level of about 70%. By then, the number of corn harvesters is expected to reach about 500,000 units. If this expectation is reached within five years, it is equivalent to an annual growth of about 75,000 units.

In addition to benefiting from the expansion of the industry, Xinyan shares are still occupying market share. In addition to securing its market position in Xinjiang, it is also expanding the foreign market. It is understood that at the beginning of the company’s venture, Xinjiang’s revenue once accounted for more than 80% of the company’s revenue. In 2010, the revenue of the company’s revenue from the Xinjiang region has dropped to 58.45%, while the income ratio of Inner Mongolia and Northeast China has risen to 17.64%. % and 21.94%, other regions accounted for 1.96%. The future market outside Xinjiang is also an important factor in promoting company growth.