External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>What’s new? China Construction Machinery Association (CCMA) released last night (12 Oct) the data for earth-moving machinery sales in Sep.</li><li>Exports of both excavators and loaders grew 21% YoY. Domestic sales of excavators grew 7% YoY, improving from ~4% growth in Jul and Aug.</li><li>Domestic sales of wheel loaders grew 14% YoY in Sep, with growth rate similar to that in Aug. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

What’s new? China Construction Machinery Association (CCMA) released last night (12 Oct) the data for earth-moving machinery sales in Sep.Exports of both excavators and loaders grew 21% YoY. Domestic sales of excavators grew 7% YoY, improving from ~4% growth in Jul and Aug.Domestic sales of wheel loaders grew 14% YoY in Sep, with growth rate similar to that in Aug. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Capital Goods - Decent Export Growth of Earth-Moving Machinery in Sep...

<ul><li>China Construction Machinery Association (CCMA) released the non-earthmoving machinery sales data for Aug 2026.</li><li>Exports of truck cranes/ crawler cranes grew 25%/5% YoY, but crane sales declined in China due to the weak domestic investment.</li><li>Looking into 4Q26, we expect the overall machinery growth trend to diverge, with overseas/mining-related machinery to deliver better growth while domestic construction-related machinery to remain sluggish. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Construction Machinery Association (CCMA) released the non-earthmoving machinery sales data for Aug 2026.Exports of truck cranes/ crawler cranes grew 25%/5% YoY, but crane sales declined in China due to the weak domestic investment.Looking into 4Q26, we expect the overall machinery growth trend to diverge, with overseas/mining-related machinery to deliver better growth while domestic construction-related machinery to remain sluggish. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Capital Goods - Weak crane sales in Aug due to sluggish China demand

Equity Bottom-Up

<ul><li>As discussed in our 2026 sector outlook published today (link), we see largesize mining excavators in overseas as well as emerging markets as key growth areas in 2026E.</li><li>In China market, we believe drivers will come from (1) the replacement-driven upcycle of excavators, and (2) an early stage of crane demand recovery.</li><li>We revise up SANY’s 2025E-27E earnings forecast by 2- 5%, after incorporating higher sales volume and finance income following the recent HK IPO. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

As discussed in our 2026 sector outlook published today (link), we see largesize mining excavators in overseas as well as emerging markets as key growth areas in 2026E.In China market, we believe drivers will come from (1) the replacement-driven upcycle of excavators, and (2) an early stage of crane demand recovery.We revise up SANY’s 2025E-27E earnings forecast by 2- 5%, after incorporating higher sales volume and finance income following the recent HK IPO. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANY Heavy (6031 HK/600031 CH) - Clear Target on Mining Excavator Growth

<ul><li>We forecast SANY Heavy / Zoomlion to deliver net profit growth (excluding FX change) of 40% YoY / 30% YoY in 2Q26, driven by strong machinery sales in general.</li><li>For SANY International (SANYI), we expect a moderate net profit decline (-10% YoY) in 2Q26, with the rate of decline improving from 1Q26’s -20%.</li><li>Meanwhile, given that RMB continued to appreciate against the major currencies in 2Q26 (+6% YoY vs USD; +4% YoY vs EUR), we expect FX loss to be recognized for most of the construction machinery companies, with the actual loss subject to their regional sales breakdown and hedging strategies.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We forecast SANY Heavy / Zoomlion to deliver net profit growth (excluding FX change) of 40% YoY / 30% YoY in 2Q26, driven by strong machinery sales in general.For SANY International (SANYI), we expect a moderate net profit decline (-10% YoY) in 2Q26, with the rate of decline improving from 1Q26’s -20%.Meanwhile, given that RMB continued to appreciate against the major currencies in 2Q26 (+6% YoY vs USD; +4% YoY vs EUR), we expect FX loss to be recognized for most of the construction machinery companies, with the actual loss subject to their regional sales breakdown and hedging strategies.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Capital Goods - Machinery: 2Q26 earnings preview

<ul><li>Hong Kong market has been under pressure over the past two weeks on concerns over liquidity.</li><li>In order to have a closer look at the fund flows in our coverage universe, we analysed close to 20,000 data points of shareholdings in CCASS (on T+2 basis) between 9 and 23 Jun for five HK-listed names under our coverage, namely Weichai Power-H (2338 HK, BUY), Zoomlion-H (1157 HK, BUY), SANY International (631 HK, BUY), SANY Heavy-H (6031 HK, BUY) and Sinotruk (3808 HK, BUY).</li><li>Our results show a clear trend: US brokers were the major sellers while the Stock Connect was the main buying force.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hong Kong market has been under pressure over the past two weeks on concerns over liquidity.In order to have a closer look at the fund flows in our coverage universe, we analysed close to 20,000 data points of shareholdings in CCASS (on T+2 basis) between 9 and 23 Jun for five HK-listed names under our coverage, namely Weichai Power-H (2338 HK, BUY), Zoomlion-H (1157 HK, BUY), SANY International (631 HK, BUY), SANY Heavy-H (6031 HK, BUY) and Sinotruk (3808 HK, BUY).Our results show a clear trend: US brokers were the major sellers while the Stock Connect was the main buying force.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Capital Goods - Who Are Trading the Sector? Implications from CCASS Data (9-23 Jun)

China

Sany Heavy Industry is a Chinese multinational heavy equipment manufacturing company that specializes in manufacturing and marketing construction machinery. Its product range includes concrete machinery, excavators, cranes, road construction machinery, and piling machinery. The company is headquartered in Changsha, Hunan, China, and was founded in 1994.

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Sany Heavy Industry (6031 HK)

Capital Goods - Decent Export Growth of Earth-Moving Machinery in Sep...

What’s new? China Construction Machinery Association (CCMA) released last night (12 Oct) the data for earth-moving machinery sales in Sep.

CMB International

Capital Goods - Weak crane sales in Aug due to sluggish China demand

Exports of truck cranes/ crawler cranes grew 25%/5% YoY, but crane sales declined in China due to the weak domestic investment.

CMB International

SANY Heavy (6031 HK/600031 CH) - Clear Target on Mining Excavator Growth

As discussed in our 2026 sector outlook published today (link), we see largesize mining excavators in overseas as well as emerging markets as key...

CMB International

Capital Goods - Machinery: 2Q26 earnings preview

We forecast SANY Heavy / Zoomlion to deliver net profit growth (excluding FX change) of 40% YoY / 30% YoY in 2Q26, driven by strong machinery sales...

CMB International

Capital Goods - Who Are Trading the Sector? Implications from CCASS Data (9-23 Jun)

In order to have a closer look at the fund flows in our coverage universe, we analysed close to 20,000 data points of shareholdings in CCASS (on...

CMB International

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