HK Stock Market Move | MORIMATSU INTL (02155) rises over 14% again, CMI index continues to expand, institutions say that the demand for engineering machinery is improving marginally.

MORIMATSU INTL (02155) rose by more than 14% again, with a cumulative increase of over 30% in the past five trading days. As of the time of publication, it has risen by 14.55% to HK$6.77, with a turnover of HK$178 million. Shanghai Securities released a research report stating that according to data from the China Construction Machinery Index (CMI) public account, the Chinese construction machinery market index in February 2025 was 106.68, a year-on-year increase of +13.53% and a month-on-month increase of +5.44%. The year-on-year growth rate increased by 10.26 percentage points, and the month-on-month growth rate increased by 8.77 percentage points. The improvement in data indicates that most domestic markets have gradually improved in terms of project commencement after the Spring Festival holiday. The gradually warming construction demand has led to a rapid increase in overall equipment utilization rate and working hours, and the market is gradually entering a phase of unexpected rebound. Bohai Securities pointed out that according to statistics from the China Construction Machinery Industry Association, excavator sales in January 2025 were 12,500 units, a year-on-year increase of 1.10%. This marks ten consecutive months of year-on-year growth, indicating a clear recovery trend. In terms of specific markets, domestic sales in January decreased slightly by 0.30% year-on-year due to the Spring Festival holiday, while exports increased by 2.19% year-on-year. The bank believes that with the low base effect in February, excavator sales data is expected to improve significantly. They recommend paying attention to the improvement of domestic downstream funds and the marginal improvement in demand for construction machinery under the expectation of global demand recovery.