Hong Kong stock concept tracking | In February, sales of various types of excavators in enterprises increased by 52.8% year-on-year. The recovery cycle of the construction machinery industry is accelerating (with concept stocks).

According to the statistics of the China Construction Machinery Industry Association on the main manufacturers of excavators, in February 2025, sales of various types of excavators reached 19,270 units, a year-on-year increase of 52.8%. Domestic sales totaled 11,640 units, a year-on-year increase of 99.4%; exports reached 7,630 units, a year-on-year increase of 12.7%. In the period of January to February 2025, a total of 31,782 excavators were sold, a year-on-year increase of 27.2%; domestic sales amounted to 17,045 units, a year-on-year increase of 51.4%; and exports totaled 14,737 units, a year-on-year increase of 7.37%. Soochow research report indicates that the construction machinery sector is experiencing a clear spring frenzy, with a significant upward trend expected in March-April. Soochow believes that against the backdrop of the recovery in domestic excavator sales in 2025, there is potential for a significant spring frenzy. The spring frenzy is mainly driven by policy guidance, with the construction machinery sector entering a season of booming construction and sales. Influenced by factors such as budget release, resumption of work after the Spring Festival, favorable weather, policy support after the Two Sessions, and market promotions, the first quarter is generally a peak season for the construction machinery sector. Soochow also points out that the fundamentals of the construction machinery sector in 2025 are better than in 2024, with resonance both domestically and internationally, and under the backdrop of a quickly recovering cycle, it is optimistic about the improvement in profitability brought about by economies of scale. Hong Kong-listed companies related to construction machinery include: ZOOMLION (01157), LONKING (03339), FIRST TRACTOR (00038), SANY INT'L (00631), Zhengzhou Coal Mining Machinery Group (00564), Sinotruk Jinan Truck (03808), Weichai Power (02338), MORIMATSU INTL (02155), etc.