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

Research evidence excerpt

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

Construction machinery

Sany (6031 HK)

Target for 15% revenue growth in 2026E

Management forecasts total revenue growth of 15% YoY for full-year 2026, mainly

driven by export growth (i.e., 15-20%). It forecasts domestic revenue to grow 10-15%

YoY in 2026. It also sees chance for a slight improvement in net margin along with an

improvement in revenue structure and enhanced cost-control measures.

Positive on growth from Africa and US

Management forecasts its US revenue to grow >20% YoY in 2026, mainly driven by

demand recovery. In Africa, it forecasts demand to remain solid and expects 20-30% YoY

revenue growth in 2026.

Progress on electrification

The company has noticed rising demand for electric machinery (i.e., concrete machinery),

especially after the recent energy price hike. Meanwhile, it has launched >100-ton

electric excavators, which have received positive feedback from customers.

Zoomlion (1157 HK)

Target for >20%/c.10% export/domestic revenue growth

Management targets export growth rate of c.20% YoY in full-year 2026, mainly driven by

Europe, Australia & Latin America. For domestic revenue, management estimates c.10%

YoY growth in 2026. In particular, management is positive on demand from earth-

working machinery. Management also expects net margin to improve slightly YoY in full-

year 2026.

FX loss to narrow in full-year 2026.

In 1Q26, the company recorded net loss of >RMB400mn. Looking into full-year 2026,

management estimates foreign exchange (FX) loss will narrow to c.RMB200mn, mainly

due to more proactive foreign exchange management and more favorable environment

(mainly from non-USD currency).

Solid growth in mining equipment