Citigroup: Competition in the mainland's large excavator market intensifies, favors Sany Heavy Industries (06031), etc.

The Zhitong Finance App learned that Citi released a research report saying that yesterday (16th), the China Construction Machinery Industry Association released more construction machinery shipment data for November this year. Among the main types of construction machinery, crawler cranes are in the strongest demand in the Chinese market. Shipments increased 102% year on year in November. Citi believes this is driven not only by demand for equipment replacement, but also by strong demand in renewable energy sectors such as wind energy.

In contrast, the bank said that the year-on-year decline in tower crane shipments in the Chinese market increased from 17% in October to 49% in November. The Association pointed out that the market share of the top four large excavator manufacturers dropped by 1 percentage point from 59.7% in 2024 to 58.7% in the first nine months of this year, which means competition among Chinese machinery manufacturers is intensifying. Citi's preference ranking for the mainland construction machinery industry remains unchanged, with Hengli Hydraulic (601100.SH), Sany Heavy Industries (06031) H shares, Sany Heavy Industries (600031.SH) A shares, Zoomlion Heavy Industries (01157), and finally construction machinery (600984.SH).