HK Stock Market Move | SANY INT'L(00631) rises over 4% excavator domestic sales growth expected to continue, leading companies' export growth rate in the second half may be better than the first half.

SANY INT'L (00631) rose by more than 4%. As of the time of writing, it has increased by 4.04% to 4.38 Hong Kong dollars, with a trading volume of 6.9736 million Hong Kong dollars. Changjiang pointed out that CME estimates that China's excavator exports in August will reach 7,700 units, an increase of nearly 4% year-on-year. This is the first time it has turned positive after a continuous decline for 14 months since June 2023. This may be mainly due to: the low base effect; overseas destocking approaching an end, leading to a recovery in demand for mainframe manufacturers; continued improvement in overseas demand. According to the General Administration of Customs data, in July, China's export volume of crawler excavators increased by 42% year-on-year, with significant growth, including exports to North America/Middle East/European Union/ASEAN/Russian-speaking region/India increasing by +102% / +20% / +31% / +23% / 108% / +3% respectively. This may indicate that demand in the major overseas regions is improving overall. The bank continued to point out that the industry's export performance is expected to continue to improve in the second half of 2024, with leading companies likely to achieve better export growth in the second half of the year. In the long term, as Chinese construction machinery companies deepen their overseas presence, they are expected to gradually break into the high-end markets of Europe and the United States. For example, Sany Heavy Industry recently appointed former Caterpillar senior executive David Nicole as its new CEO in the United States, which may help Sany Heavy Industry break through in the US market.