Pacific Securities: High demand for excavators in May, domestic and foreign sales both see significant year-on-year growth.

The Pacific Securities released a research report stating that recently, the China Construction Machinery Industry Association released the May 2026 Engineering Machinery Industry Major Product Sales Quick Report One, selling a total of 24,794 excavators of various types, a year-on-year increase of 36.2%, with 11,628 sold domestically and 13,166 sold for export. In May, excavator demand was high, with both domestic and export sales increasing year-on-year. The company remains optimistic about the future prospects of the domestic and international markets, and continues to see potential in the construction machinery sector. Key points from Pacific Securities: High demand for excavators in May, with both domestic and export sales increasing year-on-year. The Construction Machinery Industry Association released sales data for excavators in May, with a total of 24,794 sold, a year-on-year increase of 36.2%. Domestically, sales reached 11,628, a 38.6% year-on-year increase, marking a 3.7 percentage point increase from the previous month, while export sales reached 13,166, a 34.2% year-on-year increase, up by 11 percentage points from the previous month. High year-on-year growth in domestic sales, continued optimism for domestic demand. In May, domestic excavator sales reached 11,628 units, a 38.6% year-on-year increase, with the growth rate continuing to rise compared to April. The main reasons include: 1) The demand for excavators is currently in an upward cycle, as the previous upward cycle for the construction machinery industry was from 2016 to 2020. On average, equipment has a lifespan of about 8 years, and many units are now due for replacement; 2) Sales were negative in the same period last year, with a very low base. In May 2025, domestic excavator sales were 8,392, a year-on-year decrease of 1.48%; 3) Major equipment manufacturers collectively announced price increases, providing a short-term boost to demand. Leading domestic companies such as Sany, XCMG, and Guangxi Liugong Machinery have recently announced price increases, with Sany raising prices by 5% for excavators starting from May 15, XCMG raising prices by 3-5 percentage points for different models starting from June 1, and Guangxi Liugong Machinery raising prices by 5% for all excavator products starting from May 20. Looking ahead, the company believes that with continued policy support and the ongoing construction machinery replacement cycle, domestic demand will continue to rise. High growth in export sales, overseas demand exceeding expectations. In May, export sales reached 13,166 units, a year-on-year increase of 34.2%, with an increase of 11 percentage points from the previous month. Overseas demand exceeded expectations, with the company believing that despite high oil prices and a high base, exports continued to grow rapidly. Looking ahead, as overseas economic conditions remain favorable and Chinese brands continue to expand their market share in various regions, the market share of Chinese brands overseas is expected to continue to increase, with exports expected to continue to perform well. Risk factors: Unexpected delays in downstream domestic construction projects; slower-than-expected development of overseas markets, etc.