[Great Wall Machinery Deng Yuliang] Construction Machinery: Heavy Punch from Low Position

English summary

# For certain opportunities, place heavy bets; 50% in half a year: short-term data validation, mid-term earnings acceleration, long-term logic unchanged. 1. Short term: Marginal data is very good. March, April, May, and June data beat expectations every month. 2. Medium term: Q2 revenue growth and profit growth are both better than Q1. With a low forex base in Q3, Q3 will be better than Q2. 3. Long term: The logic for construction machinery will not change because of a war. It remains a sector with upward demand and room for market share improvement. Domestic replacement has resilience. Overseas demand in Africa, South America, and Southeast Asia is good, and the space is really large. For example, Africa has a larger population and area than China, but Africa only sold 20,000 excavators last year, while China has sold up to 300,000 excavators.