In-Depth Analysis of Investment Value of Leading Enterprises in the Concrete Pumping Industry

Concrete pumping equipment, as one of the core segments of engineering machinery, benefits from the continuous advancement of infrastructure investment, real estate construction, and commercial construction projects. According to industry data, the Chinese concrete pump truck market presents a highly concentrated competitive landscape,

, followed closely by Zoomlion. Together, the two companies dominate the market[1][2].

: The concrete pumping industry is highly correlated with macroeconomic conditions and fixed-asset investment, exhibiting typical cyclical fluctuations. Since the second half of 2024, the industry has experienced a cyclical recovery, with equipment operating hours continuing to rise, and a new growth cycle has gradually begun[3][4].

: Leading enterprises maintain high R&D investment intensity (R&D expense ratio typically ranges from 5% to 8%), and the localization of core components is accelerating, continuously improving the industry’s ability to achieve independent and controllable industrial chains[2].

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Financial Indicator	Value	Industry Position
Market Capitalization	190.54 billion USD	Industry No.1
Q3 2025 Revenue	21.32 billion USD (4.49% above expectations)	Sustained Growth
Q3 EPS	0.23 USD (8.44% above expectations)	Earnings Exceed Expectations
Net Profit Margin (TTM)	9.57%	Industry Leading
Operating Profit Margin (TTM)	11.31%	Stable
ROE	11.23%	Excellent
Current Ratio	1.59	Strong Short-Term Solvency

:

1. Significant Scale Effects
   : As the industry leader, Sany Heavy Industry enjoys notable cost advantages in procurement, production, and sales
2. Optimized Product Structure
   : The proportion of high-margin products (such as large-tonnage pump trucks and intelligent equipment) continues to increase
3. Overseas Market Expansion
   : Global layout effectively mitigates cyclical fluctuations in single markets, with the proportion of overseas revenue steadily increasing
4. Digital Transformation
   : The construction of lighthouse factories improves production efficiency and reduces unit costs[2]

Financial Indicator	Value	Industry Position
Market Capitalization	78.63 billion USD	Industry No.2
Q3 2025 Revenue	12.30 billion USD (41.23% above expectations)	Strong Recovery
Q3 EPS	0.13 USD (32.02% above expectations)	Substantially Exceed Expectations
Net Profit Margin (TTM)	8.92%	Stable
Operating Profit Margin (TTM)	10.19%	Good
ROE	7.45%	Above Average
Current Ratio	1.90	High Financial Safety Margin

:

1. Leading Technology in High-End Cranes
   : All-terrain cranes break foreign monopolies, with deep technical barriers
2. Improved Accounts Receivable Management
   : Historical burdens are gradually digested, and cash flow continues to improve
3. Layout of Hybrid Mining Trucks
   : Strong technical accumulation in the new energy track, leading the industry in driving range[1][4]

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The current engineering machinery industry is in a critical stage of

:

Cycle Stage	Time Window	Core Characteristics
Recovery Period	2024-2025	Equipment replacement cycle starts, infrastructure investment increases, sales growth turns positive
Expansion Period	2025-2027E	Excavators, cranes, and concrete machinery recover in sequence, and industry prosperity continues to rise
Peak Period	2027-2028E	Equipment replacement demand is released in concentrated batches, and industry profits reach a stage high
Adjustment Period	2028-2030	Demand digestion period, growth slows but remains at a relatively high level[3][4]

In accordance with project construction rhythms, recovery spreads along the following path:

1. Early Stage
   : Excavator sales rebound first (verified in 2024)
2. Mid Stage
   : Crane sales take over growth (lags behind excavators by 3-4 months)
3. Late Stage
   : Demand for concrete machinery (including pump trucks) is released[4]

[3].

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Driving Factor	Weight	Impact Logic
Equipment Replacement Cycle	25%	Equipment deployed during the 2018-2021 peak period enters the replacement cycle
Continuous Efforts of Special Bonds	22%	Fiscal policy support ensures funding sources for infrastructure
“Two Major” Construction Policies	20%	Intensive implementation of national major strategic projects
Overseas Demand from “Belt and Road” Initiative	18%	Strong infrastructure demand in Southeast Asia, the Middle East, and Africa
New Energy Infrastructure Demand	15%	Construction of photovoltaic and wind power bases drives demand for special equipment[2][3]

Six ministries jointly issued the Work Plan for Stabilizing Growth in the Machinery Industry (2025-2026), which clearly states:

• By 2026, operating revenue of the machinery industry will exceed 10 trillion yuan
• Accelerate the advancement of major projects under the 14th Five-Year Plan
• Promote urban village renovation, urban renewal, and new infrastructure construction[3]

The 2025 Central Economic Work Conference emphasized “improving capital utilization efficiency”, with the pace of special bond issuance accelerating. The funding disbursement situation for infrastructure projects has significantly improved, providing certain support for engineering machinery demand[2][4].

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Valuation Scenario	Intrinsic Value	Comparison with Current Price	Assumptions
Conservative Scenario	$13.97	-38.2% (Overvalued)	Zero revenue growth, EBITDA margin 12.2%
Base Scenario	$16.70	-26.2% (Overvalued)	5.9% revenue decline, EBITDA margin 12.8%
Optimistic Scenario	$25.88	+14.4% (Undervalued)	Zero revenue growth, EBITDA margin 13.5%
Probability-Weighted	$18.85	-16.7% (Overvalued)	Comprehensive probabilities of the three scenarios

:

• WACC: 10.4% (Beta 0.96, risk premium 7.0%)
• Terminal Growth Rate: 2.0%-3.0%
• Impact of cost changes on valuation is approximately 15%-20%[0]

Indicator	Sany Heavy Industry	Zoomlion	Industry Average
P/E (TTM)	23.25x	17.71x	~20x
P/B (TTM)	2.61x	1.31x	~1.8x
EV/OCF	9.86x	26.89x	~15x

:

• Sany Heavy Industry enjoys a leader premium, with a higher proportion of overseas business and stronger growth
• Zoomlion has a relatively low valuation, with a P/B ratio of only 1.31x, providing a high safety margin[0]

:

• Current Price: $22.62
• Trading Range: [$21.30, $22.89]
• Technical Signals: Sideways consolidation, bullish MACD, KDJ overbought warning
• Beta: 0.96, high correlation with the broader market[0]

:

• Current Price: $8.81
• Trading Range: [$8.55, $8.92]
• Technical Signals: Sideways consolidation, bullish MACD, neutral KDJ
• Beta: 0.63, low correlation with the broader market, strong anti-fall capability[0]

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Strategy Dimension	Specific Measures	Effect
Cost Control	Digital production in lighthouse factories to reduce costs and increase efficiency	Production efficiency improved by 15%-20%
Product Upgrade	Increase proportion of high-margin products, R&D of intelligent equipment	Gross margin increased by 1-2 percentage points
Global Layout	Localized production overseas, construction of sales channel networks	Overseas revenue proportion increased to over 30%
Electrification Transformation	R&D of electric excavators, mining trucks, and other products	Penetration rate of new energy products increased
After-Sales Market Services	Equipment leasing, remanufacturing, and spare parts supply	Proportion of service revenue increased[2][4]

• Increasing Market Concentration
  : The market share of CR5 (top 5 enterprises) continues to expand, with small and medium-sized manufacturers exiting the market at an accelerated pace
• Expanding Advantages of Leading Enterprises
  : Barriers in technology, capital, and channels are raised, and the market share of leading enterprises is expected to increase from the current approximately 70% to over 80%[4]

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1. Strong Profit Resilience
   : Both Sany Heavy Industry and Zoomlion delivered earnings that exceeded expectations in Q3 2025, demonstrating the anti-cyclical capabilities of industry leaders
2. Favorable Cycle Position
   : The industry is transitioning from recovery to expansion, and demand is expected to continue improving
3. Significant Valuation Divergence
   : Sany Heavy Industry enjoys a leader premium (PE 23.25x), while Zoomlion has a relatively low valuation (PE 17.71x, P/B 1.31x)
4. Clear Policy Support
   : “Two Major” construction policies and equipment replacement policies provide certain demand support for the industry

Risk Type	Specific Content	Impact Level
Macroeconomic Risk	Sustained downturn in real estate investment, slowdown in infrastructure growth	Medium-High
Geopolitical Risk	EU anti-dumping investigation against Chinese engineering machinery, trade frictions	Medium
Policy Risk	Special bond issuance falls short of expectations, fiscal tightening	Medium
Technical Risk	Accelerated iteration of new energy technology, pressure on some product lines	Medium-Low

Company	Investment Rating	Core Logic	Risk Warning
Sany Heavy Industry	Cautious Overweight	Industry leader, growing overseas business, earnings exceeding expectations	Current valuation is relatively high (DCF shows 16.7% overvaluation)
Zoomlion	Accumulate on Dips	High valuation safety margin (P/B 1.31x), improved financials	Need to monitor the progress of accounts receivable processing

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[1] Zhongyan Puhua - In-Depth Analysis of the Concrete Pump Truck Market

[2] 15th Five-Year Research Report on the Engineering Machinery Industry

[3] China Construction Machinery Association - Industry Trends and Market Analysis

[4] 2026 Engineering Machinery Industry Development Outlook

[0] Jinling AI Financial Database - Corporate financial data, market data, and technical analysis