Continuous Positive Signals Released: Shanghai Engineering Machinery Industry "Rekindles" Signs of Recovery

The newspaper reported (Reporter Mao Yirong): “Recently, the engineering machinery industry has shown strong signs of bottoming out and rebounding, with continuous improvement in the previously sluggish industry trend. Since the beginning of this year, the company has had sufficient orders on hand.” On March 3, Yantai Aidi Precision Machinery Co., Ltd. (hereinafter referred to as “Aidi Precision”) responded on the interactive platform. According to the company’s previous earnings forecast, it is expected to achieve operating revenue of 3.14 billion to 3.26 billion yuan in 2025, a year-on-year increase of 15.24% to 19.64%; net profit attributable to the parent is expected to reach 379 million to 395 million yuan, a year-on-year increase of 10.13% to 14.78%.

In fact, multiple signals indicate that under the resonance of device renewal cycles and expansion into overseas markets, positive factors in the Shanghai stock market engineering machinery industry continue to accumulate, and the recovery is becoming more evident.

Overall industry data are positive, with both domestic and foreign sales increasing. According to data released by the China Construction Machinery Industry Association, in January 2026, excavator sales reached 18,708 units, a year-on-year increase of 49.5%. Among them, domestic sales were 8,723 units, up 61.4% year-on-year, and export sales were 9,985 units, up 40.5%. With exports accounting for more than half and sales growth approaching 50%, this demonstrates a strong rebound trend in the engineering machinery industry.

Several securities firms recently pointed out in their research reports that the engineering machinery industry is entering a period of “simultaneous resonance of domestic and foreign demand.” On one hand, domestic demand is driven by the concentrated release of device renewal cycles; on the other hand, overseas markets continue to grow in demand for high-end equipment, green construction machinery, and intelligent solutions. The latest news shows that the largest North American engineering machinery exhibition — the Las Vegas Construction Equipment Show — opened on March 3, with over 400 Chinese companies participating, including industry leaders such as Sany Heavy Industry Co., Ltd. (hereinafter “Sany”). This presents new opportunities for deepening international layout and expanding overseas markets.

Leading companies are optimistic about the future. Sany told reporters that by 2025, the engineering machinery industry will have completed its cycle crossing. Domestically, market demand is bottoming out and rebounding, with accelerated penetration of new energy products. The company’s main products—excavators, concrete machinery, and cranes—have all achieved positive growth domestically. Overseas, driven by rising demand in mining, infrastructure construction, and other areas, the overseas market is accelerating growth.

A relevant person from Sany stated: “Looking ahead, the engineering machinery industry has entered a full upward cycle, with product structures continuing to upgrade towards green and high-end. As Chinese engineering machinery companies continue to enhance product competitiveness and deepen global expansion, their global market share is expected to keep increasing.”

Currently, Sany’s buyback plan is about to expire. The company plans to repurchase between 1 billion and 2 billion yuan from April 3, 2025, to April 2, 2026. According to the progress announced on March 2, the company has already repurchased nearly 72.68 million shares, amounting to over 1.35 billion yuan.

From the industry chain perspective, core component companies are operating steadily. Besides Aidi Precision’s forecast of annual performance growth, Jiangsu Hengli Hydraulic Co., Ltd. (hereinafter “Hengli Hydraulic”) achieved revenue of 7.79 billion yuan in the first three quarters of 2025, up 12.31% year-on-year, and net profit attributable to the parent of 2.087 billion yuan, up 16.49%, both hitting historical highs for the same period. Hengli Hydraulic stated that as the cycle of the engineering machinery industry recovers, the company’s share of hydraulic pumps and valves for excavators continues to increase. Additionally, Hengli Hydraulic’s “diversification” strategy has been effective; its hydraulic product lines for non-excavator industries are continuously expanding, further increasing market share in aerial work platforms, loaders, and other fields. “Since the beginning of 2026, benefiting from the recovery in medium and large excavator demand and increased market share domestically and internationally, our production has remained at full capacity,” a relevant person from Hengli Hydraulic told reporters.

Under multiple positive signals, the logic for steady development of the A-share engineering machinery industry in 2026 is clear. Driven by multiple favorable factors such as domestic demand renewal and expansion of foreign demand, the industry is expected to enter a prosperous cycle.

(Edited by He Fan)