The Zhitong Finance App learned that heavy machinery stocks generally fell today. As of press release, China Longgong (03339) fell 3.57% to HK$1.35; Zhonglian Heavy Industry (01157) fell 1.79% to HK$3.84; Sany International (00631) fell 1.11% to HK$10.66; and Morimatsu International (02155) fell 1.05% to HK$7.52.

According to the news, according to statistics from the China Construction Machinery Industry Association, in April 2023, major excavator manufacturers sold 18,772 excavators of various types, a year-on-year decrease of 23.5%. Among them, 9513 were in China, a year-on-year decrease of 40.7%. From January to April 2023, a total of 76,243 excavators were sold, a year-on-year decrease of 25%; of these, 38,341 were sold in China, a year-on-year decrease of 43.5%.

Da Mo released a research report saying that demand for mainland construction machinery stocks was still weak in the mainland market in the first half of the year. Channel inventory removal and construction activity slowed down, mainly due to real estate construction. Although infrastructure funding is gradually improving, it is still tight. The bank expects that the weak demand situation may continue until the second half of this year, but the year-on-year decline may narrow.