Core Viewpoint - The year 2025 is critical for Construction Machinery (600984.SH) to maintain its fundamentals and initiate a "new game" amidst a challenging market environment [1] Industry Overview - The domestic tower crane rental market continues to face insufficient downstream demand due to reduced new construction area and low project commencement rates, leading to low equipment utilization and rental prices [2][4] - Industry insiders predict that 2025 will be a bottoming year for the tower crane market, with a potential upward turning point expected in 2026 [3][12] Company Performance - In the first half of 2025, Construction Machinery achieved a main business revenue of 1.112 billion yuan, with rental business revenue of 916 million yuan primarily from its subsidiary, Pangyuan Leasing [6] - Despite a contraction in performance scale, Pangyuan Leasing remains a leading enterprise in the domestic construction hoisting machinery rental sector, capable of meeting diverse engineering requirements [8] Market Dynamics - The industry is experiencing accelerated consolidation, with leading companies demonstrating stronger risk resistance due to their scale and resource advantages [5][9] - The overall profitability of the tower crane rental industry is declining due to intensified price competition, leading to the exit of many small rental companies and a concentration of market share among leading firms [9] Strategic Initiatives - Construction Machinery is actively expanding into overseas markets, with Pangyuan Leasing entering markets such as the Philippines, Malaysia, and Cambodia, achieving overseas revenue of 152 million yuan in 2024, a year-on-year increase of 158% [10] - The company is focusing on new infrastructure, industrial parks, and public facilities to counteract the shrinking demand in real estate, aligning its capabilities with the high requirements of these projects [17] New Business Development - The company is investing in the development of a joint venture focused on intelligent mining control systems and core components, aligning with national policies promoting coal mine automation [18][21] - The new business initiatives, including the development of a battery-powered, explosion-proof, trackless rubber-wheeled vehicle, are expected to address long-standing challenges in coal mining safety and environmental impact [17][19] Future Outlook - As the traditional engineering machinery industry recovers, Construction Machinery is positioned to exhibit strong performance elasticity, while its new business segments may open new growth avenues [21]