Asia Essentials - 09 Jun 2026

Research evidence excerpt

Asia Essentials - 09 Jun 2026

Macquarie Equity Research

08 June 2026

Industrials

ChinaChina Construction Engineering

May-26: Strength continues in domestic and

exports Daisy

Zhang, CFA

Key Points

• May-26 excavator sales rose 36.2% YoY on domestic growth of 38.6% Figure 1 - China construction stocks,

YoY, while exports remained strong at 34.2% YoY. in order of preference

• Sany, XCMG and Liugong announced 3–5% excavator price hikes, driven

by raw-material cost hike & improving domestic demand. Company Ticker Rec TP CP TSR

Zhejiang Dingli 603338 CH OP 70.50 52.40 37.0%

Sany Heavy - A 600031 CH OP 26.50 18.65 45.1%• We expect steady domestic excavator demand & solid overseas

demand. Our pecking order: Dingli>Sany Heavy>Hengli Hydraulic (all Sany Heavy - H 6031 HK OP 28.90 19.91 48.4%

OPs). Jiangsu Hengli 601100 CH OP 133.30 117.20 14.6%

Source: Bloomberg, Macquarie Research, June 2026,

Prices as of 05-June-2026.

• May-26 sales: Overall excavator sales rose 36.2% YoY, driven by strong Figure 2 - Related-stock valuations domestic demand at 38.6% YoY, while exports maintained solid growth

at 34.2% YoY. 5M26 sales increased 24.7% YoY, with domestic/export Company 2026E P/E2027E(x) 2028E EPS CAGR25-28E(%)

volumes up 18.5%/32.9% YoY. Sany, XCMG (000425 CH, NR) and Liugong Zhejiang Dingli 12.1 10.4 9.4 14.2%

(000528 CH, NR) have recently raised excavator prices by 3–5%, led by SanySany HeavyHeavy -- AH 16.515.2 14.113.0 11.810.9 17.9%17.9%

raw-material cost hike & improving domestic demand. Average monthly Jiangsu Hengli 47.2 39.6 34.7 18.2%

working hours for excavators were 63.3 in May, -12.8% YoY. Source: Macquarie Research, priced 05 June, 2026

• Excavators: domestic market. For Jan-26 (latest data available), Relevant reports: