XCMG Constr Machinery (000425 CH) Buy: Anticipating better profitability

研报英文原文证据摘录

XCMG Constr Machinery (000425 CH) Buy: Anticipating better profitability

14 May 2026

Equity Research Report

XCMG Constr Machinery EquitiesMachinery

(000425 CH)

Buy: Anticipating better profitability China

◆ We are positive on gross margin improvement from product MAINTAIN BUY

mix optimisation and rising export contribution

TARGET PRICE (CNY) PREVIOUS TARGET (CNY)

◆ OEMs hike prices aiming to stabilise domestic pricing

12.40 13.50 competition

SHARE PRICE (CNY) UPSIDE/DOWNSIDE◆ Maintain Buy; trim TP to RMB12.40 from RMB13.50

10.97 +13.0%

OEMs hiking prices. According to China Construction Machinery Association, in April (as of 11 May 2026)

domestic excavator sales volume jumped 35% y-o-y on low base, and export momentum MARKET DATA

remained strong at 23% y-o-y, driven by robust demand for mid/large excavators in the Market cap (CNYm) 128,472 Free float 0%

Market cap (USDm) 18,907 BBG 000425 CH

African market. At its 1Q26 earnings briefing, XCMG management retains its positive 3m ADTV (USDm) 171 RIC 000425.SZ

view on high-growth markets for the year including Africa (mining, port construction),

FINANCIALS AND RATIOS (CNY)

South America (mining, property and infrastructural projects) and Australia (mining) Year to 12/2025a 12/2026e 12/2027e 12/2028e

(Conference call takeaways, 20 Mar 2026). The company targets to lift 2026 overall gross HSBC QH EPS 0.56 0.76 0.94 1.15

HSBC QH EPS prev 0.62 0.83 1.05 na

margin by 2ppt through optimising export and product mix, and strengthening price Change (%) -10.3 -8.8 -10.1 na

guidance and supervising in the domestic market. On 8 May, XCMG excavator business Consensus EPS 0.62 0.77 0.96 1.37

PE (x) 19.6 14.4 11.6 9.5

announced a price hike of 3-5% effective 1 June amid increasing raw material prices Dividend yield (%) 2.5 3.5 4.3 5.2