Machinery & HDT May review: expert meeting and GCS takeaways underscore replacement cycle, channel upgrades, and global expansion

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Machinery & HDT May review: expert meeting and GCS takeaways underscore replacement cycle, channel upgrades, and global expansion

Asia Pacific Equity Research

08 June 2026

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Machinery & HDT

May review: expert meeting and GCS takeaways

underscore replacement cycle, channel upgrades, and

global expansion

May data and Global China Summit discussions reinforce a bullish outlook for Infrastructure, Industrials &

China’s construction machinery and HDT sectors, with the recovery broadening Transport

ACand deepening across multiple fronts. The latest industry expert readouts point to a Karen Li, CFA

steadily improving domestic excavator market, with YTD demand trending better (852) 2800-8589

than expected, and domestic OEMs consolidating share to c.88% as utilization and karen.yy.li@jpmorgan.com

operating rates trend higher. The replacement cycle is emerging as the core Mufan Shi

incremental driver, supported by accelerating retirement of older equipment, (852) 2800-8502

tightening compliance, and a shrinking installed base, while channel restructuring mufan.shi@jpmorgan.com

and product localization are further strengthening the competitive position of local Jenny Qiu, CFA

leaders. End-use demand remains anchored in steady-state civil work—municipal, (852) 2800 8503

jenny.qiu@jpmorgan.com

infrastructure, and water conservancy—while property-related drag is fading at

Sunny Su

the margin and mid-sized excavator sales are improving. (852) 2800 8551

sunny.su@jpmorgan.com