( 1 ) in the first half of this year sales of construction machinery will be a modest recovery , demand is relatively strong little digging ; ( 2 ) Dealers tend to control risk, and sales policy conservative . The possibility of a price war this year is very small ; ( 3 ) inventory down to a reasonable level ,crude oil production chain pressures eased significantly funds . However, this is subject to the real estate control policies , the short-term share price downside risk of mechanical engineering , the proposed bargain concern Zoomlion .
Oil and Gas Equipment : Last week we visited the domestic oil and gas experts , concluded that : ( 1 ) the next 3-5 years, the average annual growth rate of consumption will exceed 20 percent , natural gas will be the focus of China's short-term alternative energy development ; ( 2 ) LNG operations and profitability barriers are very high , small liquefaction plant facing rare opportunities machine for pellets; ( 3 ) China will gradually increase investment in shale gas open , positive fracturing equipment , downhole tools and related services ; ( 4 ) China openness is the trend of rising oil system , private enterprises have a huge room for growth.