Construction machinery: in the bottom range, awaiting a rebound in expectations for new real estate construction. From macro data, infrastructure investment remains high, and real estate sales and new construction are rebounding, but the foundation for recovery is still not solid; from a micro perspective, excavator sales in November were slightly above seasonal characteristics.

The leading indicator of construction machinery sales—infrastructure investment—remains high; meanwhile, the investment logic hourglass of construction machinery has shifted from infrastructure to real estate. We need to closely monitor changes in real estate sales, inventory, and new real estate construction. If positive signals appear in real estate, the probability of construction machinery emerging from the trough will increase.