The hottest Zoomlion leasing business is a driving

Zoomlion: leasing business is a driving force rather than a stumbling block

Zoomlion: leasing business is a driving force rather than a stumbling block

China Construction machinery information

Guide: Recently, it has been reported that Zoomlion's construction machinery leasing business has suffered large losses and will further affect the development of the company. We think this judgment is incorrect. Zoomlion (20.9, -1.32, -5.94%) is the first construction machinery enterprise to enter the construction machinery leasing industry. Its business has

recently, it was reported that Zoomlion's construction machinery leasing business had a large loss, which would further affect the development of the company. We think this judgment is not correct. Zoomlion (20.9, -1.32, -5.94%) is the first construction machinery enterprise to enter the construction machinery leasing industry, and its business has developed rapidly in the past few years. The reasons for the losses in the past few years are relatively complex, and the policy environment and market environment are the main reasons. In, these aspects are gradually improving. In 2007 and beyond, the company's leasing business is expected to be profitable

the construction machinery leasing business has great development potential in the future and will become the driving force for the development of the company in the future. The construction machinery sold through financial leasing in developed countries accounts for 65% of the total sales, while China is only about 2%. There is a huge space in the future; Construction machinery leasing is of great significance to construction machinery manufacturing enterprises, which can promote the sales of enterprises and stabilize the income of enterprises, and has become one of the core competitiveness of construction machinery enterprises; Some policy and legal problems that plagued the construction machinery leasing industry in the past will be gradually solved, and the leasing business will enter a period of rapid development in China; Maintain the "buy" rating of Zoomlion and the target price of 28 yuan

Zoomlion's construction machinery leasing business

Zoomlion has one in Shanghai and two in Beijing Data storage space: due to the lack of independent storage space, the basic situation of digital display is as follows:

the above two enterprises achieved a total profit of 3.59 million yuan in 2003, but a total loss of 9.55 million yuan in 2004, and the loss expanded to 28million yuan in 2005. However, it is expected that the profit and loss balance will be basically achieved in 2006

by analyzing China's construction machinery leasing market, we believe that the company's construction machinery leasing business will be profitable in 2007, and the degree of development of the leasing business has an important impact on the company's future competitiveness, which constitutes one of the company's core competitiveness

construction machinery leasing is a business with great potential

from an international perspective, the construction machinery leasing market is large, and the global market turnover of construction machinery leasing is about US $40billion, equivalent to more than 30% of the expected increase in the total output value of construction machinery in 2014. The investment and expansion in North America and Europe enables us to meet the growing demand for products in developed markets such as UNITA and Japan. The construction machinery sold through leasing accounts for about 65% of the local market, which is the main sales channel

there are mainly two kinds of leasing methods corresponding to the foreign leasing industry. Physical leasing and financial leasing. Physical leasing: the construction enterprise leases physical objects (construction machinery) from the leasing company. For short-term use, it leases people (drivers) with machines. For long-term leasing, you can only rent equipment and configure your own driver. Financial leasing: the financial department cooperates with the Leasing Department of the manufacturer to provide 3 Adding 20% fly ash and different inorganic powders to polypropylene, the physical properties were compared and tested. The financial leasing service of renting before purchasing. Financial leasing is applicable to customers who need long-term use of construction machinery. China has not yet opened financial leasing to domestic enterprises, and construction machinery leasing is through physical leasing

China's domestic construction machinery leasing market

the market space is very large. By 2006, the domestic construction machinery leasing market had just started, with an annual amount of about billion yuan, less than 10% of the use of construction machinery, which is a huge gap with the international level

compared with purchasing construction machinery by yourself, construction machinery leasing has the following advantages:

1. Obtaining the right to use machinery through leasing is a prerequisite for contracting more projects during the peak construction period; 2. Due to the tight construction period, it is difficult to complete the construction task on time with its own machinery. Renting machinery can solve this problem. 3. When the self owned machinery fails and cannot be repaired immediately, you need to replace your own machinery by leasing. 4. During construction in other provinces, cities and autonomous regions with long distances, renting machinery locally is sometimes more economical than transporting your own machinery, and all aspects of staffing are also saved

the low utilization rate of self owned construction machinery affects the cost of construction enterprises. According to the survey and statistics of professional groups, the usage of self owned construction machinery of construction enterprises is usually between%, which is detrimental to cost saving. More and more domestic construction enterprises begin to pay attention to the use of leasing for operation

the obstacles to the development of domestic construction machinery are being eliminated

the supporting and coordination between various laws and regulations is not enough, resulting in the lessor often feel at a loss when dealing. The current management organization is mainly the Ministry of Commerce, but the business involving financing needs to be managed by the people's Bank of China. There are inconsistencies in policies and regulations, resulting in inconsistent supervision and unclear regulations, which makes the interests of all parties involved in leasing business unable to be fully guaranteed, affecting the development of the industry

the lack of leasing laws and regulations to protect the normal development of the leasing industry has resulted in the long-term absence of clear legal norms in the leasing industry, which cannot meet the development needs of the leasing industry. This situation is improving. The financial leasing law has been submitted to the Standing Committee of the National People's Congress and is expected to be passed and implemented in 2007, providing clear legal norms for leasing business

leasing business constitutes the core competitiveness of construction machinery enterprises. Leasing business is of great significance to construction machinery enterprises. It can not only complement conventional sales, but also promote users' understanding of new products and sales business growth through leasing. Therefore, foreign construction machinery enterprises regard the development of leasing business as their core competitiveness

by selling in the form of lease, users can have more choices, and rent and buy can be flexibly converted. For users, the early investment is small and the capital turnover is fast, so as to avoid the danger of trapping a large amount of funds in the early stage of large-scale projects that often need dozens of equipment. For manufacturers, rent can be used to attract users with limited funds in a short time and expand user groups. In the future, with the increasingly fierce competition in China's construction machinery market, whether to have a good leasing business is likely to become a key factor for success

based on these market environment factors, we believe that China's construction machinery leasing business is entering a period of rapid development, and Zoomlion's construction machinery leasing business can not only achieve profitability in the future, but also constitute the core competitiveness of the company in the future