In recent years, the elevator industry is in a period of rapid growth. The sales volume of elevator in China has increased from 168 thousand in 2006 to 760 thousand in 2015, and the annual growth rate of the elevator has reached 19.5%. Due to the diversified demand of urbanization, affordable housing, renovation and renovation, it has offset the negative impact of the short term decline in real estate investment on elevator demand. Even if the real estate demand and investment are sluggish, the elevator industry can still maintain good growth momentum.

China's elevator is mainly based on foreign brands, but the competitiveness of the local brand enterprises is improving. The market share has reached 46%. In the future, the market share is expected to expand with the help of this policy support and cost-effective.

The value of the elevator plate investment highlights

Elevator business has benefited from urbanization process. Its operation and industry fundamentals have been developing rapidly and steadily. Compared with the 5 listed companies and specialized equipment industries, the elevator industry has the following advantages:

1) the profitability is good: the total net interest rate of the 5 listed companies of the elevator sector is 13.65%, which is better than the average value of 0.49% of the special equipment industry, and the net assets return rate is 16.47%, which is also far better than the average -0.41% of the special equipment industry.

2) cash flow is abundant: the total value of the operating sector cash flow and operating income is 10.07%, which is much higher than the average value of machinery industry 2.83%, and the balance of cash and cash equivalents of 5 listed companies is 9 billion 422 million yuan.

3) valuation advantages: by the end of 2016, the dynamic price earnings ratio of the elevator plate is about 20 times, far below the average level of the machinery industry.

Stock and increment and advance to ensure high growth of industry

In the last two years, the sales of elevators have declined slightly due to the slowdown in macroeconomic growth and the impact of real estate regulation policies. But we believe that the lift performance of the industry will maintain steady growth, mainly because: 1) the elevator industry ownership is still far from saturation, the future will have a new ladder steady demand; 2) lift ratio increasing; 3) the transformation of the old staircase and the old building elevator installation demand gradually release; 4) the rapid development of the elevator installation and maintenance business, become a new "blue ocean"; 5) countries to increase infrastructure investment, infrastructure construction demand; 6) The Belt and Road brought vast opportunities in overseas markets.

The investment suggests that the basic side advantages of the listed companies in the elevator industry are prominent, and the investment value of the elevator plate is gradually highlighted in the low market risk preference. The industry has a number of growth points, stock and increment, and the future development is strong. Suggestions focus attention: Shanghai mechanical and electrical, broad day shares, Kangli elevator.