The construction machinery sector had a strong intraday trend on the 2nd. As of press time, Xiamen Industrial Group Co., Ltd., national machinery heavy equipment, Sany Heavy Industry, Zoomlion and other industries rose by the limit, Hengli hydraulic approached the limit, and Anhui Heli, Shanhe intelligence, Tiandi technology and Liugong increased by more than 8%. Pacific Securities pointed out that the recent explosion of large-scale excavation demand is mainly due to the sharp increase in coal demand and tight coal supply. In view of this situation, various departments require to ensure the supply of coal and ensure the demand for coal. About 50% of large-scale excavation is used for coal mining, and various restrictions have been eliminated. Since this year, the issuance of special bonds in many places has been accelerated to promote the construction of various projects, make up for shortcomings, benefit people's livelihood, stabilize investment and promote development. In addition, the steel price continued to rise in the first half of this year and reached a record high in mid May. However, with the proposal of the policy of "ensuring supply and stabilizing price", the steel price gradually decreased and returned to a reasonable range. The decline of raw material prices reduced the construction cost of various projects, improved the construction enthusiasm of the construction party, accelerated the construction speed and improved the construction demand. At present, the overall sales volume of excavators in July will continue to improve year-on-year. With the implementation of infrastructure, real estate and other projects, the demand for excavators in the peak season from September to October may exceed expectations. We are optimistic about the leading companies in the construction machinery industry, and focus on Sany Heavy Industry, which has a high market share, as well as Hengli hydraulic, Zoomlion, XCMG machinery, etc.