Jinwu Financial News | According to CMB International Development and Research, according to data from the China Construction Machinery Association, domestic excavator sales in China increased 13% year on year to 10,800 units in April. This is another positive figure after the 9% year-on-year increase in March. The bank believes that growth in April was mainly driven by small excavators, while medium-sized excavators were still greatly affected by weak real estate investment. In contrast, excavator exports fell 13% year on year to 8,000 units in April, mainly due to the high base effect and weak demand in some overseas markets, and this decline was largely expected. Domestic sales/exports fell 3%/17% year over year in the first 4 months of 2024.
The bank expects domestic demand for excavators to remain stable, while exports will continue to slow down. The bank continues to be optimistic about the market share growth potential of Zoomlion Heavy Industries (01157/000157CH, purchase) in different regions. The bank is still conservative about Sany Heavy Industries (600031CH, holding), but further improvements in domestic excavators will bring upward opportunities.