Recently, some analysts have pointed out that against the background of intensified global geopolitical disturbances, the mining machinery industry is expected to continue to be highly prosperous.
The market originally believed that this round of rising mining machinery prosperity would benefit from rising commodity prices and the Federal Reserve’s interest rate cuts, so it would be short-lived.
But in fact, this round of mining machinery boom is different from previous cycles. The more critical factor is that in the context of anti-globalization, global geopolitical disturbances have intensified, countries’ competition for resource products has intensified, and countries’ demands for the ability to ensure the supply of resource supply chains and industrial chains are expected to continue to strengthen.
This change in the geopolitical landscape has had an important impact on the traditional mining capital expenditure transmission mechanism.
The capital expenditures of mining companies are expected to respond to price changes more quickly, and the amount of capital expenditures of mining companies is expected to be larger than in the past.
The mining machinery industry will directly benefit from the increase in capital expenditure, thus bringing about the continuation of the industry’s high prosperity.
From a global market perspective, China’s mining machinery still has a relatively low global market share.
Taking the 2025 Jakarta list of the top 50 global mining equipment manufacturers as an example, the top five global mining machinery companies are Caterpillar, Komatsu, Sandvik, Epiroc, and Metso, all of which are overseas companies. The five companies have a total sales volume of approximately US$42.2 billion, and a CR5 of approximately 55%.
Although 13 Chinese companies including Tiandi Technology, Zhengzhou Mining Machinery, and Xugong Machinery are on the list, the sales of Chinese companies on the list reached US$14.723 billion, accounting for only 19.21%.
However, domestic mining machinery has differentiated competitive advantages in terms of cost performance and customized equipment design.
Under the trend of independent and controllable resource supply chains, the global share of domestic mining machinery still has considerable room for growth.
In addition, the “Belt and Road” investment is expected to drive China’s mining machinery overseas and accelerate the increase in the share of domestic mining machinery.
my country will invest more overseas in 2025. According to preliminary statistics, the focus of China’s BRI participation projects is energy and metal mining. The active overseas expansion of Chinese companies will drive demand for related equipment.
With the positive growth of investment in the “Belt and Road Initiative”, the market share of domestic mining machinery is expected to further increase.
From an investment perspective, the current boom in mining machinery will last longer, bringing investment opportunities.
The mining machinery boom in a broad sense has three stages, including bulk raw material development, energy mining, and construction and utilization. It is currently in the first stage. Related equipment companies are expected to benefit from the rising boom in the mining machinery industry.
Relevant targets include Xugong Machinery (000425.SZ), Naipu Mining Machinery (300818.SZ), Sany International (00631), Shantui Shares (000680.SZ), Tongli Shares (920599.BJ), Northern Shares (600262.SH), etc.
Of course, you also need to pay attention to risks.
Macroeconomic fluctuations may lead to lower-than-expected investment, lower-than-expected industry policies, lower-than-expected capital expenditures of mining companies, lower-than-expected progress of mining projects, and risks of global trade frictions, all of which may have a certain impact on the development of the mining machinery industry.
