CICC: Overseas construction machinery demand exceeds expectations, overseas construction terminal demand is expected to continue to strengthen

The Zhitong Finance App learned that CICC released a research report saying that global construction machinery OEMs recently released 2Q26 results. Currently, domestic construction machinery OEMs account for about 60% of overseas revenue. The bank believes that demand for overseas construction terminals is expected to continue to strengthen in the future. Specifically, demand for data centers and leasing will drive demand in North America, while Latin America is mainly driven by public investment. It is recommended to focus on Sany Heavy Industries (600031.SH), Xugong Machinery (000425.SZ), Hengli Hydraulic (601100.SH), Zhonglian Heavy Industries (000157.SZ), and Caterpillar to keep profit forecasts, ratings and target prices unchanged.

CICC's main views are as follows:

Carter: Revenue exceeds expectations, and demand in the Americas has clearly recovered

2Q26 construction business revenue was US$8.346 billion, up 35% year over year. Total user sales increased for the sixth consecutive quarter, by 22%, and dealer inventory increased by $400 million. The 2Q26 construction business segment made a profit of US$1,947 million, up 57% year over year. 2Q26 Resources revenue was US$4.648 billion, up 20% year on year, and segment profit was US$693 million, up 23% year on year. Due to the high order rate, the company expects user sales to continue to grow throughout the year. From a regional perspective, there is a marked recovery in North America and Latin America.

Komatsu: Revenue growth is good, improving guidance for the whole year

Revenue from the construction equipment business was 502.6 billion yen, up 15.3% year on year. Excluding exchange rate effects, it increased 5.3% year over year. Africa, Oceania, America, and Europe performed well. Mining business revenue was 462.4 billion yen, up 13.8% year on year. Excluding exchange rate effects, it increased 2% year over year. The company increased sales volume of the Construction, Mining and Utilities Division's seven major products from -5%-0% expected in April 2026 to an increase of 0%-5%.

Downstream demand outlook

Construction demand: The bank believes that demand for overseas construction terminals is expected to continue to strengthen in the future. Specifically, demand for data centers and leasing will drive demand in North America. Latin America is mainly driven by public investment. Mining demand: Despite weak demand for coal, sales in Indonesia declined significantly. Thanks to strong demand for gold and copper, Latin America and Africa are growing significantly, and we are optimistic that mining demand will continue in the future.

risk

Downstream demand falls short of expectations; tariff risk.