First Read: XCMG Construction Machinery "Call takeaways: Core..."

研报英文原文证据摘录

First Read: XCMG Construction Machinery "Call takeaways: Core..."

nt value. Nickel/coal mining remains core source of demand,

12/27E 0.98 0.93

while bauxite/alumina are new growth drivers. Electric CM’s penetration in Indonesia is 12/28E 1.24 1.14

below 3%, despite emerging economics. Electric loaders’ payback period is two years,

while e-HDTs can largely offset the price spread in one year. However, inadequate grid Phyllis Wang

infrastructure/upfront mining capex pressure/charging-efficiency bottlenecks remain Analyst

constraints on electrification; adoption in mining scenarios notably lags municipal S1460517100001

phyllis.wang@ubs.cominfrastructure projects. Electrification is led by leading miners in mining scenarios.

+86-21-3866 8964

Overall, electrification’s core contradiction lies in its clear full-lifecycle cost advantage,

but infrastructure/scenario adaptability remain the main constraints. Grace Wang

Analyst

S1460525030001Localisation and new energy set to drive long-term growth

grace-zb.wang@ubs.com

Competition wise, Chinese brands have notable cost/delivery/service responsiveness +86-21-3866 8857

advantages, while differentiating themselves/taking share from foreign peers with new

energy products. For non-mining machinery, Chinese brands hold a 70% share (below

10% three years ago), vs c30% for Japanese/Korean brands. As a representative player,

XCMG is competitive in new equipment/aftermarket parts pricing/local service

capabilities, while accelerating localisation (new-energy plants/remanufacturing

centres). Given Indonesia's 23.90% tariff on new-energy equipment, localised

manufacturing has become a key path to reducing cost/enhancing competitiveness. In

longer term, localised manufacturing/new-energy capabilities could be core competitive