Greater China Industrials (H/A): Virtual forum takeaways: CM, automation, HDT all in upcycle

Research evidence excerpt

Greater China Industrials (H/A): Virtual forum takeaways: CM, automation, HDT all in upcycle

Construction machinery

Construction machinery expert

Domestic excavator sales to grow 10-20% YoY in 2H26

The construction machinery expert, Yu Ailing of Construction Machinery Magazine,

estimates domestic excavator sales volume to increase 10-20% in 2H26. Across

products, Ailing saw stronger growth in medium-sized excavators in 1H26, mainly from

replacement demand. Meanwhile, Ailing expects the excavator replacement upcycle to

expand to loaders, cranes, and concrete machinery going forward.

Pricing more likely to stabilize

Regarding leading OEMs’ price-increase plans, Ailing believes large-scale

implementation will be difficult, given still-weak end-market demand. On the other hand,

Ailing estimates price competition among OEMs to ease and expects excavator prices to

be more stable.

Penetration rate of electric excavators to reach 2-3% in 2027

Ailing is positive about the development of electric excavators and forecasts penetration

to reach 2-3% in 2027 (vs. 0.2-0.3% currently). Across products, Ailing sees more

opportunities in small excavators.

Hangcha

Revenue growth still on track

Management believes its revenue growth in 1H26 remains on track, mainly thanks to

solid export growth (likely double digits). Across regions, the company achieved stronger

growth in Europe. Regarding FX loss, the company targets offsetting the impact through

more cost-control measures.

Proactive on intelligent logistics

Management targets 30% YoY growth for its existing intelligent logistics business in

2026. The company will introduce new intelligent logistics products during its

Technology Day in Hangzhou on 22 July.

Hengli Hydraulic

Strong momentum for hydraulic business