The Zhitong Finance App learned that construction machinery stocks have continued to decline recently. As of press release, Sinotruk (03808) fell 4.66% to HK$11.04; Morimatsu International (02155) fell 3.77% to HK$6.9; Zhonglian Heavy Industries (01157) fell 3.43% to HK$3.66; and Sany International (00631) fell 0.38% to HK$10.46.

According to the news, Damo 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, and channel inventory removal and construction activity slowed down, mainly due to real estate construction. Although infrastructure funding is gradually improving, it is still tense. 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 somewhat. The bank expects that the industry's heavy truck sales in the second quarter may drop to 200,000 units from 241,000 units in the first quarter, but this still means a 35% year-on-year increase, mainly due to the very low base for the second quarter last year.