Orient Securities has released a research report stating that the competitiveness of Chinese construction machinery companies going global continues to strengthen, driven primarily by product advantages and solution service advantages, rather than simple policy influences. Moreover, Chinese companies are continuously enhancing their overseas localized sales and service systems, and the firm believes that corporate competitiveness will continue to support market share gains, maintaining a positive outlook on the medium-to-long-term investment opportunities in the sector's overseas expansion. The main views of Orient Securities Company Limited (600958) are as follows:
Trade policy concerns are expected to have limited impact on the overseas competitiveness of construction machinery. Due to previous international trade disruptions, the market has formed concerns about the sustainability of construction machinery exports, but the firm believes that the overall competitiveness of Chinese equipment going global will be limitedly impaired. Previously, the market witnessed international trade changes and disturbances, including the Ministry of Finance lowering the export tax rebate rate for new energy vehicle value-added tax, and China and Europe reaching a consensus on hybrid and electric vehicle trade; meanwhile, China's excavator and other construction machinery exports account for a large proportion and contribute significantly to overall growth (in September 2026, excavator domestic sales were 9,911 units, up 7.16% year-on-year, while exports were 12,800 units, up 20.7% year-on-year), so concerns about the competitiveness of construction machinery exports have marginally increased. However, the firm believes that the main driving force behind China's construction machinery going global comes from product and solution competitiveness, and even if minor policy adjustments occur, the firm expects the impact to be limited, potentially bringing medium-to-long-term investment opportunities.
The overseas share of construction machinery continues to rise, mainly relying on product and solution advantages rather than simple policy support. China's construction machinery exports continue to grow rapidly, and overseas market share continues to increase, which the firm believes is fundamentally due to product and solution capabilities. From a product perspective, China's construction machinery has made significant progress in electrification and intelligentization, and there is a high cost-performance ratio in price differences among similar products. From a solution capability perspective, China's construction machinery going global will undergo precise modifications according to special overseas environments; for example, in Africa, where working conditions involve high temperatures, heavy dust, and poor road conditions, domestic construction machinery companies can quickly modify and launch adapted machines; for example, in Brazil, by establishing local banks to solve dealer financing problems and shorten equipment transaction cycles. The firm believes that the competitiveness of China's construction machinery is rooted in complete supply chain cost advantages, customized working condition solutions, and localized service combinations, and overseas policies are not the core conditions for capturing overseas market share.
The competitive barriers for equipment going global continue to rise, with strong resilience to shocks. Domestic construction machinery currently already has a foundation of market stickiness, and the firm believes that its comprehensive advantages in going global possess a strong moat. The firm observes that in this round, construction machinery companies, while gaining overseas market share, are also advancing localized sales and service systems, such as establishing local subsidiaries, service stations, and warehousing centers, and building localized after-sales, maintenance, and spare parts supply systems to quickly respond to customer needs and equipment operation and maintenance requirements. The firm believes that Chinese equipment companies continue to bind overseas customers and strengthen customer stickiness, and their competitiveness has formed a strong barrier, with export share expected to continue rising.
Risk warnings: macroeconomic fluctuations leading to investment falling short of expectations, overseas high interest rates dragging down demand, intensified overseas trade frictions, rising raw material prices dragging down corporate profits, exchange rate fluctuations, and changes in overseas policies.
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