The Zhitong Finance App learned that construction machinery stocks rose collectively. As of press release, Morimatsu International (02155) rose 6.68% to HK$5.75; Zoomlion Heavy Industries (01157) rose 6.3% to HK$4.22; Sany International (00631) rose 3.75% to HK$11.62; and China Longgong (03339) rose 3.03% to HK$1.36.
According to the news, on July 21, the Executive Meeting of the State Council deliberated and approved the “Guiding Opinions on Actively and Steadily Promoting Urban Village Reform in Megacities”. Shen Wan Hongyuan pointed out that the introduction of the policy is expected to speed up the iteration of stock equipment and the acceleration of electrification. It will also increase the utilization rate of stock equipment and boost confidence in the industrial chain. Furthermore, construction machinery is expected to enter a new renewal cycle.
Zheshang Securities pointed out that as domestic economic stability and steady growth expectations remain strong, as real estate support increases further, the physical workload for infrastructure projects is being formed at an accelerated pace, the driving effect is expected to gradually be released, and demand expectations for the domestic construction machinery industry will improve marginally.