Data recently released by the China Construction Machinery Industry Association show that the construction machinery market has continued to pick up this year.
In May, major excavator manufacturers sold 24,800 excavators of various types, a year-on-year increase of 36.2%.
Among them, domestic sales were 11,600 units, a year-on-year increase of 38.6%; exports were 13,200 units, a year-on-year increase of 34.2%.
From January to May this year, major excavator manufacturers sold a total of 126,800 excavators, a year-on-year increase of 24.7%.
Among them, domestic sales were 68,100 units, a year-on-year increase of 18.5%; exports were 58,700 units, a year-on-year increase of 32.9%.
As the industry picks up, construction machinery companies have also launched a wave of price increases.
Sany Heavy Industry, Liugong, Xugong Machinery, etc. have successively issued price increase notices.
Sany Heavy Machinery, a subsidiary of Sany Heavy Industry, announced that it will increase the price of excavator products by 5% starting from May 15; Liugong announced that it will increase the price of excavator products by 5% starting from May 20; XCMG Machinery will increase the price of different models by 3 to 5 percentage points starting from June 1.
The price increase of international construction machinery giants is even higher.
Caterpillar implemented a 3% to 5% surcharge on some models in March, and plans to carry out a second round of 4% to 7% price increases in July; Komatsu raised prices for excavators and loaders by 7% and 8% respectively in February, and announced a unified price increase of 5% for all series of construction models in August; John Deere will increase prices for construction and forestry product lines by 5% starting from June 1.
Soochow Securities pointed out that the sales of excavators in May exceeded expectations. The high domestic growth was mainly due to the month-on-month improvement in the capital disbursement rate in the second quarter, coupled with the low base effect in the same period last year; the export exceeding expectations was mainly due to the strong prosperity of mining areas such as Africa, which not only hedged against the decline in the Middle East, but also supported the industry’s high growth again on the basis of last year’s high base.
CITIC Construction Investment said that this year’s domestic sales of excavators have obviously shifted back from the peak season because the Spring Festival this year is later than last year. Domestic excavators have returned to high year-on-year positive growth since March and are expected to continue to maintain growth in the future.
Exports maintained a strong performance and were not disturbed by the international situation, tariff changes, interest rate cuts, etc. China’s construction machinery maintained a high growth trend.
Pacific Securities believes that with the continuous advancement of favorable policies, the industry will superimpose the construction machinery update cycle and continue to be optimistic about the subsequent upward domestic demand.
At the same time, overseas exports are still achieving high growth despite high oil prices and a high base. Looking to the market outlook, as the overseas boom continues, the share of domestic brands overseas will continue to increase, and exports are expected to continue to perform well.
According to statistics, as of June 9, construction machinery concept stocks have fallen by an average of more than 5% this year, underperforming the Shanghai Composite Index during the same period.
However, there are still 6 stocks that have increased by more than 10%, namely Handler, Changling Hydraulics, Forster, Eddie Precision, Tuoshan Heavy Industry, and Shaoyang Hydraulic.
Hernzhe ranks first with a cumulative increase of nearly 160% during the year.
From the perspective of valuation level, there are 14 construction machinery concept stocks with a rolling price-to-earnings ratio of less than 30 times, including Tongli Shares, Liugong, Noli Shares, Anhui Heli, etc.
Tongli shares’ rolling price-to-earnings ratio is 9.22 times, ranking the lowest.
The company said in an institutional survey on May 20 that overseas business is expanding in a normal and orderly manner in 2026. At the same time, the tight energy supply caused by the impact of overseas situations has promoted the attention and promotion of new energy products among overseas customer groups.
The TED136 electric drive rigid mining truck has been successfully developed and is still being tested and tested repeatedly in the mining area. Because the price is significantly higher than the existing wide-body trucks (135 and 145 models) and the capacity improvement is limited, customer demand is not strong, and it has not yet been sold in batches.
In terms of future growth potential, according to unanimous predictions from more than five institutions, there are 9 construction machinery concept stocks with net profit growth rates expected to reach more than 20% this year and next.
Sany Heavy Industry, Hengli Hydraulics, Xugong Machinery, Zoomlion and other industry leaders were shortlisted. For example, Sany Heavy Industry, the stock received “positive” (including buy, overweight, strong recommendation, etc.) ratings from 28 institutions.
Compared with the closing price on June 10 and the target price unanimously predicted by institutions, Liugong has the highest upside potential, reaching 45.62%.
Changjiang Securities research report believes that Liugong’s electric products have leading advantages and open space for global layout.
As of the end of 2025, the company’s electric series products are sold to more than 60 countries and regions around the world, with cumulative global sales exceeding 60,000 units. The technical strength and product quality of electric products are leading, and it is expected to fully benefit from the increased electrification penetration rate in the industry under the background of high oil prices.
