Greater China Industrials (H/A): 2026 BofA China Conference: key takeaways from China Industrial

Research evidence excerpt

Greater China Industrials (H/A): 2026 BofA China Conference: key takeaways from China Industrial

Construction machinery

Anhui Heli (600761 CH)

Solid growth from Europe market

In 1Q26, the company’s revenue from Europe increased by >40% YoY. Management

stated that this was mainly driven by 1) rising demand; 2) penetration of lithium battery

products; 3) Heli’s enhancing sales network in Europe; and 4) Heli’s enhancing R&D for

more localized products.

Intelligent logistics: target to penetrate more in overseas market

Management estimates revenue from intelligent logistics will reach c.RMB1.4bn (vs.

c.RMB1bn in 2025) on the back of sufficient orders on hand. Looking ahead, Heli targets

to focus more on penetration into overseas markets for its intelligent logistics products.

Export revenue to grow by >20% YoY in 2026E

Management estimates revenue from the overseas market will increase by >20% YoY in

full-year 2026, vs. single-digit growth in domestic revenue.

Hengli Hydraulic (601100 CH)

Solid growth from hydraulic components with rising demand & share gain

According to the company, demand for cylinders, pump & valves has been resilient in

2026 YTD, with its hydraulic components factories already running at full capacity. The

company is actively working on capacity expansion to meet the rising demand. Across

different customers, the company is actively penetrating into overseas leading

construction machinery manufacturers for pump & valves and sees strong growth for its

revenue from global OEMs in 2026 (likely to double).

New business ramping up; ready for capacity

Management estimates its revenue from ball screw & linear guide for new business will

ramp up significantly in 2H26. The company has been well prepared for its capacity