China Galaxy Securities: In July, excavator domestic and overseas sales increased by 4% and 21% year-on-year, respectively, while the penetration rate of electrical components continues to rise.

China Galaxy Securities released a research report stating that in terms of domestic demand, the year-on-year growth rate of excavator sales in July fell compared to June, affected by some demand brought forward for end-of-quarter assessments in June and the traditional off-season in July. From January to July, the cumulative year-on-year growth rates for domestic sales and exports were 18.8% and 31.7%, respectively. The ongoing equipment upgrading, new urbanization projects, and major engineering projects are expected to provide robust growth momentum for the domestic market in the medium to long term. On the export side, July saw excavator exports grow by 21.2% year-on-year, with a cumulative year-on-year growth rate of 31.7% from January to July. From a medium to long-term perspective, there is still significant potential for Chinese manufacturers to increase their market share in Europe, America, and Australia, as well as in the new energy products market. The main points from China Galaxy Securities are as follows: In July, excavator domestic and foreign sales grew by +4.13% and +21.2% year-on-year, respectively. According to the association, (1) Excavators: In July, sales of various types of excavators reached 19,521 units, a year-on-year increase of 13.9%. Among these, domestic sales/exports increased by 4.13%/21.2%. From January to July, a total of 171,841 units were sold, up by 24.8%, with domestic/export sales increasing by 18.8%/31.7%. (2) Loaders: In July, sales of various types of loaders totaled 11,774 units, a year-on-year increase of 30.8%. Domestic/export sales grew by 26.8%/34.9%. From January to July, a total of 93,826 units were sold, up by 27.2%, with domestic/export growth rates of 17.4%/38.9%. In July, the electrification rate of domestic sales of loaders was 62.8%, an increase of 2.6 percentage points. From January to July, the cumulative electrification rate for domestic sales was 58.1%, and the electrification rate for exports in July was 7.6%, up by 2.5 percentage points. Other products According to association data, the sales growth rates for June were as follows: Truck cranes overall 19%/domestic sales 15%/exports 23%; Crawler cranes overall 33%/domestic sales -4%/exports 51%; Truck-mounted cranes overall 22%/domestic sales -18%/exports -29%; Tower cranes overall 15%/domestic sales 11%/exports 20%; Forklifts overall 17%/domestic sales 18%/exports 15%; Aerial work platforms overall 38%/domestic sales 39%/exports 37%. In July, domestic working hours/rates decreased by 8.82%/6.34 percentage points year-on-year. According to association data, the average monthly working hours for major construction machinery products in July 2026 was 73.6 hours, a decrease of 8.82% year-on-year and a decrease of 0.17% month-on-month. Among these, excavators averaged 54.3 hours and loaders 98.2 hours. The operating rate for major construction machinery products in July 2026 was 49.9%, down 6.34 percentage points year-on-year and down 1.17 percentage points month-on-month, with excavators at 48.2% and loaders at 53.9%. According to Komatsu's official website, the working hours for Komatsu excavators in North America, Europe, Japan, and Indonesia in June 2026 increased year-on-year by +3.7%, +5.4%, -2.1%, and +4.4%, respectively. Industry news dynamics 1) On July 6th, Guangxi Liugong Machinery successfully delivered the 9200F super-large excavator to Jiangxi Copper Group; 2) ZOOMLION showcased its earthmoving, construction machinery, concrete machinery, high-altitude machinery, and agricultural machinery products at East Africa's largest trade fair; 3) On July 22nd, Hangcha Group held its first AIDAY, officially launching the LogiMind embodied large model and its full range of forklifts from Siasun Robot & Automation; 4) On July 27th, XCMG shipped nearly 300 crawler cranes to Southeast Asia, setting a record for the region; 5) On July 27th, XCMG's first overseas new energy factorythe Indonesia New Energy Manufacturing Baseofficially commenced production. Risk warning: Risks of macroeconomic performance being below expectations, risks of policy advancement not meeting expectations, risks of intensified industry competition, risks of export trade disputes, and risks of exchange rate fluctuations.