CITIC Securities: Chinese mining machine companies are expected to catch up with overseas mining machine companies in scale and achieve rapid growth.

CITIC Construction Investment pointed out that, with the increasing trend of capital expenditure in the global mining industry, the prosperity of the mining machinery industry has increased, and overseas mining machinery companies have maintained high levels of revenue and orders. With the nurturing of the trillion-dollar market, mining machine companies with revenues exceeding tens of billions of dollars such as Caterpillar and Komatsu have emerged. Against this background, Chinese mining machine companies are accelerating their efforts to catch up, actively responding to the upward trend of mining capital expenditure through methods such as sending service teams overseas, setting up supporting warehouses and logistics overseas, and expanding production capacity overseas. By continuously improving their product competitiveness, they are accelerating the acquisition of overseas market share and breaking through the development bottleneck caused by the limited mining resources in China, thereby gaining a foothold in the high-end market, which was previously dominated by overseas mining machinery companies. In the long term outlook, the trend of mining machinery going global is promising. With the support of ample market space, Chinese mining machine companies are expected to catch up with overseas mining machine companies in terms of scale and achieve rapid growth.