First Read: XCMG Construction Machinery "Investor Day takeaways" (Buy) Wang

研报英文原文证据摘录

First Read: XCMG Construction Machinery "Investor Day takeaways" (Buy) Wang

of XCMG's overall overseas revenue now from 10% last year. XCMG UBS Cons.

names six core markets: Africa (West//East/South Africa), Southeast Asia, South 12/26E 0.76 0.76

America, Australia, Indonesia, and Central Asia. Particularly, sales from Indonesia will 12/27E 0.98 0.95

likely amount to >Rmb1bn in 2026. Overall overseas sales could surpass 50% of 12/28E 1.24 1.34

XCMG's top line, reflecting the diversified, resilient nature of its operations overseas that

keeps its accelerating globalisation intact despite near-term ME disruptions. Phyllis Wang

Analyst

S1460517100001

Domestic demand stable, with product prices up 3-5%; asset quality improving

phyllis.wang@ubs.com

In 4M26, XCMG's earthmoving machinery revenue rose nearly 20% YoY; its domestic +86-21-3866 8964

excavator ASP came in largely flat with Q425. Price hikes across product series kicked off

Grace Wang

in May, in an effort to pass through cost pressure. Along with the price increases is Analyst

product mix upgrading, with high-GPM lines (eg, new-energy loaders) ramping up S1460525030001

faster, in contrast to compressed long-tail, low-GPM ones. XCMG expects a shift from grace-zb.wang@ubs.com

scale- to profitability-driven sales growth domestically. Forex risk management: In Q126, +86-21-3866 8857

forex losses of >Rmb400m were incurred due to a depreciation in Indonesian/Indian

currencies. In Q226, XCMG eyes much narrowed losses through a combination of

'exposure reduction + local financing + use of derivatives (European options + cross-

currency hedging)'. Also, XCMG will continue to lessen off-balance-sheet mortgage

guarantee exposures chiefly by raising downpayment ratios and sharing risks with

financial institutions.