Stable growth is highly expected of the global railway market , especially the market of equipments and maintenance service. According to the estimate of the UNIFE, average fixed investment per annum from 2015 to 2017 will reach about 1190 billion euros and will be an increase of 9 percent compare with the average annual investment from 2012 to 2014. Different from the high proportion of infrastructure investment in China,globally speaking,the market share of railway vehicle(32.7%)and its related services(37.8%)are the highest .We think this market structure is beneficial to the oversea market development of Chinese railway equipment manufacturer.
It is estimated that the emerging market is still the breach of Chinese railway equipment manufacturer. According to the market share of the present export orders in North and South Car ,the emerging market accounts for 80 percent ,while the developed market is 20 percent. According to the structure of exports,urban rail vehicles(30%)are the main part at present ,next is locomotive and self-developed bullet train .The export of China Railway High-speed bullet train has not yet been achieved .We think that the emerging market is still the breach in the near future ,the scale of market in the developed countries is larger ,and the part of North and South Car gains highly recognition ,we are looking forward for its sustainable development.
We believe that the localization of production and the mode of “product + service” is the development direction of export in the future. Although Chinese rail transit products have more advantage in price than other international competitors ,they have more development space ,such as in the customization production ,the high environmental Index and the various applicability. Chinese equipment manufacturer are trying their best to open up the oversea market of those products which are of high additional value. We believe that the localization of production and the mode of “product + service” is the development direction of expert in the future.
Although the export of equipment are facing more complex and variable risk factors ,such as the boundaries of technology, the turbulent political scene and so on ,we think the North and South Car will benefit from the internationalization transformation of oversea expansion .Recently, all stock prices have a adjustment of about 20 percent.But we believe that the industry and the company are basically good.Annual reports and quarterly reports will be the beneficial catalyst.CSR-A and CNR are the first choice to buy.