According to Zhitong Finance APP, The Pacific Securities Co., Ltd. (SSE: 601099) released a research report stating that in September, domestic excavator sales continued to rise year-on-year, while exports maintained a relatively high growth rate. The firm remains optimistic that market conditions at home and abroad will continue to improve, and it continues to favor the construction machinery sector.
Event: Recently, the China Construction Machinery Association released its September 2026 preliminary report on sales of major products in the construction machinery industry. The main views of The Pacific Securities Co., Ltd. (SSE: 601099) are as follows.
September Excavator Domestic Sales Continue to Rise Year-on-Year, Exports Maintain Relatively High Growth
The Construction Machinery Industry Association released September excavator sales data. In September 2026, a total of 22,717 units of various excavators were sold, up 14.4% year-on-year. Of these, 9,911 units were sold domestically, up 7.16% year-on-year, continuing to rise on a year-on-year basis, with the growth rate up 3.24 percentage points from August. Export sales reached 12,806 units, up 20.7% year-on-year, continuing to maintain a relatively high growth rate.
Domestic Sales Continue to Rise Year-on-Year, Domestic Demand Expected to Keep Improving
In September, domestic excavator sales reached 9,911 units, up 7.16% year-on-year, continuing to rise on a year-on-year basis, with the growth rate up 3.24 percentage points from August. Excavator demand itself is currently in an upward cycle. The previous upward cycle for the construction machinery industry was 2016-2020. Based on an average equipment lifespan of about eight years, the industry is now in a period of replacement demand for existing equipment. Looking ahead, the firm believes that with the continued advancement of favorable policies and combined with the construction machinery replacement cycle, domestic demand is expected to continue improving.
Exports Maintain Relatively High Growth, Overseas Demand Remains Robust
In September, export sales reached 12,806 units, up 20.7% year-on-year, continuing to maintain a relatively high growth rate, with overseas demand remaining robust. The firm believes that despite high oil prices and a high base overseas, exports still achieved relatively high growth, a standout performance. Looking ahead, the firm believes that as overseas market conditions continue and domestic brands further deepen their presence across various overseas regional markets, the share of domestic brands overseas will also continue to rise, and exports are expected to continue delivering solid results.
Investment Recommendation
Continue to favor the construction machinery sector. (The original text did not name specific targets and did not provide ratings or target prices.)
Risk Warnings
Domestic downstream construction activity may fall short of expectations; overseas market expansion may fall short of expectations, among other risks.
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