Investment Rating - The industry investment rating is "Outperform the Market," indicating a projected increase of over 10% relative to the market index in the next six months [12]. Core Insights - In February, domestic sales of excavators in China faced pressure, while exports continued to show high growth. The total sales of excavators reached 17,226 units, a year-on-year decrease of 10.6%, with domestic sales down 42% to 6,755 units, and exports up 37.2% to 10,471 units [3][5]. - For loaders, February sales were 9,540 units, a year-on-year increase of 9.28%, with domestic sales down 14.3% to 3,863 units, and exports up 34.4% to 5,677 units [4][5]. - The decline in domestic sales is attributed to the impact of the Spring Festival and a high base from the previous year, rather than a weakening demand trend. The industry is transitioning to a phase driven by the replacement of existing equipment [5]. - The export market is showing strong performance, with excavator and loader exports growing significantly, indicating that external demand is playing a crucial role in supporting the industry during the off-peak season [5]. - The report suggests that the domestic market is expected to recover due to policies promoting equipment upgrades and local government debt management, while the competitiveness of domestic manufacturers in overseas markets is improving [5]. Summary by Sections Excavator Sales - February sales of excavators totaled 17,226 units, down 10.6% year-on-year, with domestic sales at 6,755 units (down 42%) and exports at 10,471 units (up 37.2%) [3]. - Cumulative sales for January-February reached 35,934 units, a year-on-year increase of 13.1% [3]. Loader Sales - February sales of loaders were 9,540 units, up 9.28% year-on-year, with domestic sales at 3,863 units (down 14.3%) and exports at 5,677 units (up 34.4%) [4]. - Cumulative sales for January-February reached 21,299 units, a year-on-year increase of 27.9% [4]. Market Dynamics - The report highlights that the domestic market is entering a phase driven by the replacement of existing equipment, supported by policies for equipment upgrades [5]. - The strong performance in exports indicates a growing penetration and competitiveness of Chinese brands in the global market [5].

Core Viewpoint - SANY Heavy Industry (06031) has successfully listed its shares at a price of HKD 21.30 per share, raising approximately HKD 13.307 billion through the issuance of 632 million shares, with the stock price increasing by 3.01% to HKD 21.94 at the time of reporting [1] Company Overview - Founded in 1989, SANY Group is a leading enterprise in the global construction machinery industry [1] - The company specializes in the research, manufacturing, and sales of a full range of construction machinery products, including excavators, concrete machinery, cranes, piling machinery, and road machinery [1] Market Performance - As of April 30, 2025, SANY Heavy Industry's revenue from overseas markets accounted for 57.4% of its total revenue, indicating strong international demand for its products [1] - The company's products have been sold in over 150 countries and regions worldwide, reflecting its global reach and customer trust [1]