According to "The Big Banks," Huayan Research expects that domestic excavators will benefit from the rising cycle of the mining industry and electrification, raising the target price for Zoomlion to 12 yuan

HSBC Research published a report stating that with the rise of the mining industry and the push for electrification, domestic excavator brands can further capture market share and expand profits. The bank expects that by 2026, China's excavator exports and domestic sales will grow by 15% and 6% respectively, driven by mining and infrastructure demand from regions such as the Middle East and Africa; even with intensified overseas price competition, the increase in export sales proportion will still improve the profit margins of Chinese brands, as the gross profit margin for exports is 10 percentage points higher than that of the domestic market.

At the same time, the bank believes that the recovery of the domestic market is mainly driven by replacement demand, large projects, and a low base, with domestic large projects tending to adopt large, electric, and intelligent equipment, which will benefit leading Chinese brands.

In terms of stock selection, the bank is optimistic about Caterpillar (CAT.US) and XCMG (000425.SZ), as they can capture opportunities in the rising mining industry; they set target prices of $850 and RMB 13.5 respectively, with a rating of "Buy." Additionally, the bank is also optimistic about JSHL (601100.SH), due to the increase in market share of its hydraulic products among overseas customers and its humanoid robot concept, with a target price of RMB 131 and a rating of "Buy."

As for Zoomlion (01157.HK), the bank is optimistic about its export growth and humanoid robot concept, reinitiating coverage with a "Buy" rating, raising the target price for Zoomlion's H shares from HKD 8.3 to HKD 12, and for Zoomlion's A shares (000157.SZ) from RMB 9.4 to RMB 12.4