Strong export of earth-moving machinery in Feb

Strong export ofearth-moving machinery inFeb China Construction Machinery Association (CCMA) released over the weekendthedata for earth-moving machinery sales inFeb2026.Exportswere strong forboth excavators and wheel loaders (+37%/+34% YoY), which are ahead of ourexpectations. Domestic sales of excavators/wheel loaders (-42%/-14% YoY),partially affected by the CNY, were weaker than our expectations. In 2M26,excavator sales(domestic sales + exports)grew 13% YoY while wheel loadergrew 28% YoY, suggesting a strong start this year.The strongexportdatacontinue to reaffirm our positive stance on the earth-moving machinery outlookthisyear, driven by potential upside of global mining capex on the back ofelevated commodity prices, as well as Chinese machinery players’ penetrationin emerging markets.MaintainBUYonZoomlion (1157 HK / 000157 CH),SANY Heavy (6031 HK /600031 CH),Jiangsu Hengli (601100 CH)andSANYI (631 HK). China Capital Goods Sector Wayne FUNG, CFA(852) 3900 0826waynefung@cmbi.com.hk Related reports:SANY International (631 HK)-Mining truck gaining traction; Higher earningsforecast and TP–20 Feb 2026 (link) Capital Goods-Strong momentum ofnon-earth-moving machinery sales inJan–16 Feb 2026 (link) Capital Goods-A good start of earth-moving machinery sales in Jan–8 Feb2026 (link) Capital Goods-HDT sales +39% YoY inJan on low base–3 Feb 2026 (link) Capital Goods-Strong sales momentumcontinued for truck cranes & crawlercranes in Dec 2025–16 Jan 2026 (link) Zoomlion–Expect accelerated salesgrowth in Nov–5 Dec 2025 (link) Capital Goods–Key themes in 2026;Focus on Mining equipment + Power fordata centres + Replacement cycle–1Dec 2025 (link) 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: CCMA, CMBIGM estimates Source:CCMA, CMBIGMestimates Source:CCMA, CMBIGM Source: CCMA, CMBIGM Source: CCMA, CMBIGM estimates Source:CCMA, CMBIGM Disclosures& Disclaimers Analyst CertificationThe research analystwho is primary responsible for the content of this research report, 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 personalviews 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 thisreport; (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 covered in 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 withpotential 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 Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on theperformance of underlying assets or other variable market factors.CMBIGMrecommends that investors should independently evaluate particular investmentsand strategies, and encourages