China Galaxy Securities: Domestic and international excavator sales in February decreased by 42% and increased by 37% respectively. Going overseas and mining will become the growth highlights of China's engineering machinery industry in 26 years.

China Galaxy Securities released a research report stating that, on the domestic demand side, monthly data showed that sales of non-excavator cranes/truck cranes have seen double-digit growth for 6 and 8 consecutive months, respectively. The recovery of non-excavators continues to improve, with domestic sales of tower cranes in January also turning positive (+7%), despite the impact of the Chinese New Year, signaling potential positive signs. This year, major engineering projects, new urbanization, and equipment updates are expected to support domestic demand. On the overseas front, excavator and loader exports in January-February have both seen high growth, with the prices of gold, copper, and other metal ores trending upward and remaining high. Going abroad and into the mining sector will continue to be bright spots for growth in China's construction machinery industry for the 26th year. Main points from China Galaxy Securities: - Domestic and foreign sales of excavators in February were -42% and +37% respectively. - According to the association, (1) excavators: various types of excavators sold 17,226 units in February, a 10.6% year-on-year decrease. Among them, domestic sales decreased by 42%, while exports increased by 37.2% year-on-year. Cumulative excavator sales in January-February increased by 13.1% year-on-year, with domestic sales decreasing by 9.19% and exports increasing by 38.8% year-on-year. The bank believes that major projects, new urbanization, and equipment updates will support stable growth in domestic demand for the 26th year, with continued prosperity in exports and mining equipment. (2) loaders: in February, domestic sales of loaders decreased by 14.3% year-on-year, while exports increased by 34.4%. Cumulative sales of loaders in January-February increased by 27.9% year-on-year, with domestic sales increasing by 11.5% and exports by 43.9% year-on-year. The electrification rate in February was 22.45%, down 3 percentage points from the previous month. Other products: - Sales of car/truck cranes have seen double-digit growth for 6 and 8 consecutive months. Sales data for January show: overall car cranes +29%/domestic sales +55%/exports +9.6%; crawler cranes +73%/dom...