Zhi Tong Cai Jing·2025-09-12 08:20Core Viewpoint - The construction machinery industry is experiencing a recovery, with significant growth in both domestic and export sales of excavators, driven by structural infrastructure projects and an overall improvement in market conditions [1][4][5]. Group 1: Domestic Market Performance - In the domestic market, excavator sales from January to August 2025 increased by 21.55% year-on-year, with both small and large excavators showing growth [1][4]. - The sales of cranes in the domestic market from January to July 2025 saw a decline of only 4.95%, indicating a significant narrowing of the drop, with recovery driven by demand in the wind power sector [4]. - The revenue growth ranking for major manufacturers in the first half of 2025 was led by SANY Heavy Industry, followed by LiuGong, Shantui, XCMG, and Zoomlion, reflecting differences in business structure [4]. Group 2: Export Market Performance - Excavator export sales from January to August 2025 increased by 12.79% year-on-year, reversing a two-year decline, with significant growth in large excavators and a reduction in the decline of small excavators [1][5]. - The total export value of construction machinery reached $33.486 billion, up 10.8% year-on-year, with specific product categories like earthmoving machinery and concrete machinery seeing exports rise by 17% and 14% respectively [5]. - Emerging markets such as Southeast Asia, the Middle East, and Africa remain the primary drivers of growth, while structural recovery in Western Europe is also notable [5]. Group 3: Financial Performance - The construction machinery sector reported a revenue of 187.92 billion yuan in the first half of 2024, reflecting an 8.02% year-on-year increase, with domestic and international revenues growing by 5.96% and 12.5% respectively [3]. - The net profit attributable to shareholders for the first half of 2025 was 18.661 billion yuan, a year-on-year increase of 22.94%, driven by improved cost control and operational efficiency [3]. - Operating cash flow for the sector reached 18.147 billion yuan, up 22.49% year-on-year, indicating a strong cash generation capability [3]. Group 4: Investment Recommendations - The sector is expected to reach an income inflection point in 2025, with performance elasticity likely to increase, suggesting a focus on leading manufacturers, component manufacturers, and high-tech forklift manufacturers [6][7]. - Recommended companies include SANY Heavy Industry, XCMG, Zoomlion, LiuGong, and Shantui for comprehensive machinery manufacturing [7]. - For component manufacturers, companies like Hengli Hydraulic, Aidi Precision, and Changling Hydraulic are highlighted for their potential improvements in fundamentals [7].