Strong sales momentum continued for truck cranes & crawler cranes in Dec 2025

Strongsalesmomentum continuedfortruck cranes&crawler cranesin Dec 2025 China Construction Machinery Association (CCMA)releasedthefull set ofconstruction machinery sales data forDec2025.Strong growth momentum ofdomestic sales of truck cranes and crawler cranes continued in Dec(+39%/+96% YoY), which we believe were driven by wind power installationand other energy projects. Exports inDecwere strong across different types ofmachineries(excepttowercranes).We expecttheupcycleof non-earth-movingmachinery demandto extend to 2026, which willcontinue toserve as a sectorcatalyst.Our key pick isZoomlion (1157 HK / 000157 CH, BUY),followed byJiangsu Hengli (601100 CH, BUY)andSANY Heavy (6031 HK /600031 CH,BUY).Meanwhile,we remain cautious onZhejiang Dingli (603338 CH, HOLD)due tosluggish(though improving)AWP industry salesvolume(-8% YoY inDec). China Capital Goods Sector Wayne FUNG,CFA(852) 3900 0826waynefung@cmbi.com.hk Highlights on non-earth-moving machinery inDec2025:Truck crane: +38% YoY. Domestic sales grew39% YoY inDec,vs+26% YoYin Nov and +42%YoY in Oct.Exports grew 37% YoY in Dec,significantly accelerating from +8.5% in Nov and-4.5% in Oct. For the fullyear in 2025, both domestic sales and exportsgrew 1.4% YoY. Crawler crane:+68% YoY. Domestic sales surged 96% YoY in Dec(slightlydecelerated from +102% inNov), representing YoY growth forsevenconsecutive months.Exports grew 57%YoY in Dec,slightlyaccelerating from53% YoY inNov.For the full year in 2025, domestic sales/exportsgrew33%/ 29%YoY. Forklift:unchanged YoY.Domestic sales dropped 5% YoY in Dec,significantlyslowingfrom+24% YoY inNov. Exports remained resilient,growing8% inDec(accelerated from 1% YoY inNov).For the full year in2025, both domestic sales and export grew 13% YoY. Related reports:Zoomlion–Expect accelerated salesgrowth in Nov–5 Dec 2025 (link) Capital Goods–Keythemes in 2026;Focus on Mining equipment + Powerfor data centres + Replacement cycle–1 Dec 2025(link) Tower crane:-31% YoY.Dragged by weak property investment,domesticsalesdeclined46%YoYinDec(improved from-49% YoY inNov butdeterioratedfrom-17%in Oct).Exports dropped 10%YoY in Dec,worseningfromthe positive growth trend(YoY)between Jul and Nov.Forthe full year in 2025,domestic sales declined 50% YoY while exportsgrew20% YoY. Zoomlion–Full range of products toexpand globally–1 Dec 2025 (link) SANY Heavy–Clear target on miningexcavator growth–1 Dec 2025 (link) Weichai Power–Expect HDT enginesgrowth to slow in 2026E; Eyes onbackup power for data centres–1 Dec2025 (link) Source:CCMA, CMBIGM Source: CCMA, CMBIGM Source:Komatsu, CMBIGM Source:Komatsu, CMBIGM Source: Komatsu, CMBIGMestimates Source: CCMA, CMBIGM estimates Source:CCMA, CMBIGM Source: CCMA, CMBIGM Source: CCMA, CMBIGM estimates Source:CCMA, CMBIGM Source:CCMA, CMBIGM Source: CCMA, CMBIGM Source:CCMA, CMBIGM Source: CCMA, CMBIGM Source:CCMA, CMBIGM Source: CCMA, CMBIGM Source:CCMA, CMBIGMestimates Source: CCMA, CMBIGM estimates Disclosures& Disclaimers Analyst CertificationThe research analyst who is primary responsible for the content of this researchreport, in whole or in part, certifies that with respect to the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and FuturesCommission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3) serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next 12 months: Stock with potential return of +15% to-10% over next 12 months: Stock with potential loss of over 10% over next 12 months: Stock is not rated byCMBIGM HOLDSELLNOT RATED :Industry expected to outperform the relevant broad market benchmark over next 12 months:Industry expected to perform in-line with the relevant broad market benchmark over next 12 months:Industry expected to underperform the relevant broad market benchmark over next 12 monthsCMB InternationalGlobal MarketsLimited Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852)3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank) Important D