Sector Movement | Promoting the Installation of Elevators in Qualified Buildings; Elevator Concept Stocks Rose Across the Board

Zhitong Finance APP learned that on September 1, buoyed by news that the Ministry of Housing and Urban-Rural Development will intensify efforts to promote elevator installation in eligible buildings and improve property management in old residential communities, A-share elevator concept stocks rallied across the board. As of press time, General Elevator (300931.SZ) and Fujitec Elevator (002774.SZ) both hit the daily limit; Kone Elevator (002367.SZ), Guangri Co., Ltd. (600894.SH), Meilun Elevator (603321.SH) and other stocks surged higher.

Huang Yan, Vice Minister of the Ministry of Housing and Urban-Rural Development, stated at a press conference on the 31st that in the next stage, the Ministry will focus on the most pressing concerns of the public. It will step up efforts to promote elevator installation in eligible buildings and improve property management in old residential communities to further increase people’s sense of gain, happiness and security.

Institutional analysis indicates that increased investment in infrastructure including real estate, rail transit and urban renewal will continuously expand domestic demand for elevators and escalators. The after-market is also expected to enter a period of rapid development. Growth in new housing starts in downstream real estate and renewal demand in the stock market will sustain steady growth of the elevator industry. It is projected that by 2025, the compound annual growth rate of China’s complete elevator sales will reach 9%, and the sales volume of complete elevators in 2021 is expected to hit 1.1 million units.