Bohai Securities pointed out that in terms of construction machinery, sales of excavators from January to February 2021 increased by 149.2% year-on-year. Judging from the main downstream application industry data in the first two months, the cumulative growth rate of infrastructure and real estate investment has both achieved substantial growth. The cumulative growth of infrastructure investment has increased by 34.95% year-on-year, and the cumulative amount of real estate development investment has increased by 38.3% year-on-year. The boom in construction machinery has continued to rebound. In terms of policies, the National Fourth Emission Standard for non-road mobile machinery is determined to be implemented at the end of 2022. The replacement of inventory equipment superimposed on the previous round of industry peaks has entered the peak period, which is expected to continue to drive the demand for construction machinery renewal. In addition, with the gradual relief of the global epidemic after the popularization of vaccines in the future, the export data of excavators is expected to maintain a steady recovery trend. In summary, we expect that the overall sales of excavators in 2021 are expected to maintain a growth of about 10%. Under this expectation, it is recommended to focus on construction machinery leader Sany Heavy Industry, construction machinery, and core component manufacturer Hengli Hydraulics.
