According to the Zhitong Finance APP, on March 5, the A-share Construction Machinery Sector showed strong performance, with several individual stocks significantly increasing. Besides Guangxi Liugong Machinery (000528.SZ) hitting the limit-up, Shantui Construction Machinery (000680.SZ), Sany Heavy Industry (600031.SH), and XCMG Construction Machinery (000425.SZ) also rose. Soochow Research Reports indicated that in 2025, with the recovery in domestic excavator sales, a noticeable spring rally is expected. The spring rally mainly comes from the policy direction, as Construction Machinery enters the peak season for operations and sales. Related symbols: MORIMATSU INTL (02155), ZOOMLION (01157), SANY INT’L (00631), FIRST TRACTOR (00038).
The collective strength of the Construction Machinery Sector is closely related to the improvement of the industry fundamentals. According to the latest data, the China Construction Machinery Market Index (CMI) in February 2025 was 106.68, an increase of 13.53% year-on-year and 5.44% month-on-month. The rise in the CMI index indicates that after the Spring Festival holiday, domestic project commencement situations are gradually improving, construction demand is heating up, and equipment operating rates and hours have significantly rebounded. This brings unexpected rebound momentum to the construction machinery industry.
According to statistics from the China Construction Machinery Industry Association, 12,512 various excavators were sold in January 2025, representing a year-on-year increase of 1.1%, of which domestic sales were 5,405 units, down 0.3% year-on-year; exports were 7,107 units, an increase of 2.2% year-on-year. The decline in domestic sales may be due to the Spring Festival in January 2025, which has a timing mismatch with the Spring Festival in February 2024. The first quarter is traditionally a peak season for the industry, and several main engine manufacturers are expected to achieve a good start.
During a recent institutional survey, XCMG Construction Machinery mentioned that the domestic sales in the industry have shown signs of recovery, especially the sales of earthmoving machinery have achieved positive growth for several months in a row. Recent trends in crawler cranes, mining machinery, and road machinery have also shown good growth. With accelerating natural equipment replacement demand and the impact of new special treasury bonds and long-term treasury projects, the domestic construction machinery industry is gradually entering an upward cycle.
Feedback from some main engine manufacturers and upstream parts suppliers indicates that domestic orders have rebounded to varying degrees this year. With the peak season for the industry approaching from March to May, the demand for inventory from main engine manufacturers has increased, and orders for parts such as pumps, valves, and motors have seen a year-on-year rise.
The support of national policies has also injected vitality into the traditional infrastructure sector. In 2024, benefiting from the issuance of national bonds and the implementation of ultra-long special treasury bonds, fixed asset investments in infrastructure and mining industries are expected to grow by 9.19% and 10.50% year-on-year, respectively. The promotion of new infrastructure projects such as high-quality farmland construction further broadens the application scenarios of construction machinery, becoming an important source of demand increase.
Soochow Research Reports indicate that in 2025, with the recovery in domestic excavator sales, a noticeable spring rally is expected. The source of the spring rally mainly comes from the policy direction, as Construction Machinery enters the peak season for operations and sales. Affected by the release of budgets, resumption of work after the Spring Festival, favorable climate, policy support after the Two Sessions, and market promotions, the first quarter is generally the peak season for Construction Machinery operations and sales.
开源证券称，随着内需市场更新周期启动、海外市场回暖，行业将迎来内外需“共振”，弹性看内销，新高看出海。同时，随着近几年保有量出清，挖掘机市场将迎来恢复性增长，2023年国内挖掘机八年保有量达1.7 million台，在存量替换需求拉动下，挖机内销年销量有望由2024年0.1 million台，回归至中枢水平0.15-0.2 million台，复合增速10%-20%。
Related Concept Stocks:
MORIMATSU INTL (02155): MORIMATSU INTL is committed to becoming a global leader in core equipment, value-added services, and intelligent factory solutions in the industrial field. The company’s main business includes design, manufacturing, installation, and operation and maintenance services, primarily applied to core equipment, process systems, and overall solutions (including process packages, detailed design, modular plant delivery, as well as pre-sale and after-sale services, etc.) involving chemical, biological, and polymer reactions.
ZOOMLION (01157): As a leader in the aerial work machinery industry, ZOOMLION’s global service strategy for intelligent high-altitude machinery consistently leads the industry. In the overseas service sector, ZOOMLION’s intelligent high-altitude machinery has not only strengthened the construction of localized service systems but also fully upgraded the service model through digital and intelligent service methods.
SANY INT’L (00631): CICC published a report stating that the company’s domestic Coal Machinery business is solid, while the overseas mining vehicle business will become a new growth driver. In terms of Logistics equipment, the company’s global market share in large port machinery remains stable, and electrification will drive the growth of small port machinery. In the Oil & Gas Equipment and XINXINGCHANYE sectors, the company is nurturing medium- to long-term growth momentum.
第一拖拉机股份(00038)：2024年前三季度实现营业收入10.736 billion元，同比+4.73%；实现归母净利润1.101 billion元，同比+1.45%，扣非后归母净利润1.068 billion元，同比+2.15%。
