Zhao Yin Guo Ji·2025-06-11 03:31Industry Overview - The demand for excavators in the Chinese construction machinery industry showed a slight decline of 1% year-on-year in May, which is below expectations. However, this is viewed as a single-month drop following a strong growth trend since early 2024, indicating resilience in the excavator market driven by replacement demand [2] - In contrast, the domestic sales of wheel loaders increased by 17% year-on-year in May, likely supported by robust capital expenditures in the non-ferrous metals sector [2] - The report maintains a buy rating for Sany Heavy Industry (600031 CH), Hengli Hydraulic (601100 CH), and Zoomlion Heavy Industry (1157 HK / 000157 CH) [2] Market Performance - The Hang Seng Index closed at 24,163, up 1.56% year-to-date, while the Hang Seng Tech Index rose by 2.00%, reflecting a 43.25% increase for the year [2] - The performance of major global stock indices was mixed, with the US Dow Jones and S&P 500 showing slight gains, while the German DAX and French CAC experienced declines [3] Company Specifics - Hengli Hydraulic's hydraulic cylinder production for excavators continues to show an upward trend, indicating stable downstream orders [2] - The report highlights the potential for investment in the construction machinery sector, particularly in companies that are expected to benefit from ongoing infrastructure developments and equipment upgrades [2]