The most optimistic sector in infrastructure is construction machinery, with three main reasons.

The first reason is that domestic construction machinery companies rapidly grew during the major infrastructure period of the last 20 years and have entered the global second tier. The technological gap is not large, but the prices are much lower than those in the first tier, providing a high cost-performance ratio compared to the world's top construction machinery companies, which adds a lot of leverage for exports. Compared to other infrastructure industries (steel, cement, etc.), the elasticity and risk resistance are stronger.

The second reason is that large domestic infrastructure projects are successively starting, and construction machinery is a prerequisite demand. This means that performance will improve more quickly. From a funding perspective, construction machinery is the first choice.

The third reason is that global geopolitical conflicts are gradually easing, and reconstruction projects are increasing. Our country is known for its infrastructure prowess; as infrastructure develops, it will also promote domestic construction machinery to go global, and this incremental growth cannot be ignored.

The combination of these three factors makes the logic of construction machinery more multidimensional.

This is how major cyclical industries work; they are silent when they are sluggish and come on strong when they return. $Sany Heavy Industry (SH600031)$