Construction Machinery Industry Recovery, Shantui Shares 2025 Overseas Revenue Increases 17.94%, Divergence Between Domestic and Foreign Markets Intensifies

Ask AI · What are the overseas revenue targets for 2026 at 10.5 billion yuan, and how is Shantui Co., Ltd. planning to hedge against exchange rate risks?

By Li Beibei, Shanghai Report

On the evening of March 15, among leading construction machinery companies, “the king of bulldozers” Shantui Construction Machinery Co., Ltd. (hereafter “Shantui Co.”) (000680.SZ) announced its 2025 annual report ahead of others. The financial report shows that in 2025, the company achieved total revenue of 14.62 billion yuan, a year-on-year increase of 2.82%; net profit attributable to the parent was 1.211 billion yuan, up 9.86%.

Notably, in 2025, the company’s domestic and international market performances diverged significantly, with overseas revenue reaching 8.741 billion yuan, a 17.94% increase. However, rapid expansion into overseas markets also brought certain cost pressures. Due to exchange rate fluctuations causing foreign exchange losses, financial expenses increased by 268.32% year-on-year.

In 2026, Shantui Co. plans to achieve operating revenue of 16.1 billion yuan, with overseas revenue targeted at 10.5 billion yuan, continuing to focus on overseas market deployment. Whether the company can balance overseas investments with profitability, respond to industry cycle fluctuations, and advance its subsequent Hong Kong listing plan have become key market concerns. When contacted on the morning of March 17, a securities department staff member of Shantui Co. stated, “We cannot respond.”

Revenue of 14.62 billion yuan, net profit up 9.86%

The annual report indicates that in 2025, due to the high plateauing trend in the construction machinery industry, steady progress, and improved sales, along with rapid growth in foreign trade, the company demonstrated strong resilience. Against this backdrop, Shantui Co. “seized the structural growth opportunities in the domestic industry and strategic export markets, withstood challenges from intensified competition and significant declines in some markets, and maintained continuous improvement in operational performance and business structure.”

In 2025, the company’s core operational data remained solid, with total revenue of 14.62 billion yuan, a slight increase of 2.82% year-on-year; net profit attributable to the parent was 1.211 billion yuan, up 9.86%; and net profit after deducting non-recurring gains and losses attributable to the parent was 1.187 billion yuan, a 20.28% increase. As of the end of Q4 2025, Shantui Co.'s total assets reached 19.057 billion yuan, a 4.20% increase from the previous year.

Shantui Co.'s main business revenue mainly comes from the production and sales of bulldozers, excavators, rollers, graders, pavers, milling machines, concrete machinery, loaders, and core components such as crawler chassis assemblies and transmission parts.

During the reporting period, the company’s main business revenue was 13.618 billion yuan, a 5.49% increase, accounting for 93.14% of total revenue, further rising from 90.79% in 2024. In terms of profitability, the company’s gross profit margin for main business increased by 1.43 percentage points year-on-year to 21.71%, with the gross margin of construction machinery main products rising by 1.68 percentage points to 24.80%.

By industry, in 2025, Shantui Co.'s sales revenue from industrial products was 13.339 billion yuan, up 7.75%; but sales from commercial products dropped sharply by 47.34% to 279 million yuan. Breaking down by product, sales of construction machinery main products reached 10.95 billion yuan, a 12.15% increase, accounting for 74.90% of total revenue; sales of construction machinery parts and other products totaled 2.667 billion yuan, down 15.18%.

It is worth noting that the company’s performance in domestic and overseas markets diverged significantly. During the reporting period, overseas revenue was 8.741 billion yuan, a 17.94% increase from 2024, accounting for nearly 60%; meanwhile, domestic revenue declined by 11.29% to 4.876 billion yuan.

The rapid growth of overseas business is closely linked to the company’s ongoing global market deployment. In 2025, overseas warehouses in Indonesia and training centers in Peru were established, subsidiaries in Indonesia and Australia were inaugurated, and the number of overseas subsidiaries reached 13, further improving the overseas operational system. However, overseas expansion also directly increased costs, with sales expenses rising by 5.01% mainly due to increased overseas sales staff salaries; financial expenses soared to 74.1159 million yuan, a 268.32% increase, primarily due to exchange rate fluctuations causing significant foreign exchange losses.

From a financial perspective, in 2025, Shantui Co.'s net operating cash flow was 780.1 million yuan, up 51.64%, showing excellent performance. However, net cash flow from investing activities was 310 million yuan, a decrease of 43.4 million yuan from the previous year, a 349.18% decline, mainly due to increased capital injection into Shandong Heavy Industry Financial Company. Regarding debt structure, both short-term and long-term borrowings decreased year-on-year, making the financial structure more stable.

Additionally, the acquisition of 100% equity of Shandong Heavy Industry Construction Machinery Co., Ltd. (“Shandong Heavy Machinery”) completed in November 2024 proved highly effective in 2025. According to the performance commitment at the time, Shandong Heavy Machinery was expected to achieve a net profit after deducting non-recurring gains and losses attributable to the parent of no less than 125.905 million yuan in 2025; it actually achieved 355.807 million yuan, with a performance completion rate of 282.60%, far exceeding the target.

2026 overseas market plan aims for 10.5 billion yuan in revenue

“2026 marks the beginning of the ‘14th Five-Year Plan,’ with both opportunities and challenges for the construction machinery industry,” Shantui Co. stated in its annual report. The industry is investment-driven, cyclical, and heavily influenced by fixed asset investment, macro-control policies, exchange rates, and raw material prices. The company’s bulldozers, excavators, loaders, and rollers are mainly used in infrastructure projects such as earthworks, while concrete machinery is used in high-speed rail, bridges, water conservancy, hydropower, and high-rise buildings. Future performance will be more affected by infrastructure development.

Therefore, “it is also clear that external environmental changes impacting the development of the construction machinery industry are deepening, with increased risks and challenges.” Shantui Co. emphasized.

Based on industry and market environment assessments, the company set its 2026 operational goal of achieving 16.1 billion yuan in revenue, about a 10% increase. Overseas markets remain a key focus, with a target of 10.5 billion yuan in revenue.

Specifically, in 2026, Shantui Co. will adopt a “domestic and international” development strategy. It will stabilize the domestic market, increasing both volume and value, while continuing to expand international business, increasing overseas resource investment and key market deployment, and focusing on product differentiation to strengthen core competitiveness. The company will also broaden financial channels, strengthen risk control, actively cooperate with overseas financing channels, and reduce accounts receivable.

Despite clear strategies for “internal and external” development, the increasingly fierce global competition in construction machinery and industry cycle fluctuations pose uncertainties. The annual report candidly states that as the company’s international business develops and the internationalization process deepens, with an expanding overseas sales system, fluctuations in international balance of payments, foreign exchange reserves, political situations, and RMB exchange rates could lead to discrepancies between settlement or collection amounts and contract values, resulting in potential losses.

In response to geopolitical, exchange rate, and industry cycle risks, Shantui Co. has also outlined countermeasures. According to the financial report, in 2025, the company actively promoted strategies in mining, AI, and new energy, and advanced digital and intelligent transformation. Notably, on June 18, 2025, the company launched its global AI brand strategy, integrating artificial intelligence deeply into R&D, manufacturing, procurement, marketing, and service throughout the industry chain to empower industry upgrading.

Based on Shantui Co.'s performance in 2025, several rating agencies have issued optimistic forecasts for 2026–2028. For example, a report from China Post Securities predicts that Shantui Co.'s revenue will reach 16.144 billion yuan, 17.777 billion yuan, and 19.516 billion yuan in 2026–2028, with year-on-year growth rates of 10.43%, 10.11%, and 9.78%, respectively; net profits attributable to the parent are expected to be 1.499 billion yuan, 1.829 billion yuan, and 2.156 billion yuan, with growth rates of 23.77%, 22.04%, and 17.85%.

责任编辑：张蓓 主编：张豫宁