According to a research report by China Securities, domestic sales of excavators recorded a robust 51% growth from January to February this year. Furthermore, non-excavator core varieties also exhibited strong performance, with domestic demand recovery surpassing initial expectations. In March, upstream parts and components companies are experiencing tight production schedules, indicating that the growth momentum in domestic sales of construction machinery is anticipated to persist. China Securities believes that the domestic market is poised to embark on a fresh growth cycle. In terms of cycle positioning, sales of core varieties in 2024 have declined by 70% to 80% from their peak, substantially reducing base pressure. Recently, new domestic investments have fared well, with funding, infrastructure investment, and operating hours all pointing towards a positive trend in the second half of the year. It is envisioned that demand across multiple types and regions will continue to improve in 2025. From a medium- to long-term perspective on upgrades and replacements, a new cycle has commenced, marked by a significant increase in the number of used machines being exported. Policies aimed at equipment upgrades and replacements are accelerating the phase-out of outdated models, thereby enhancing the certainty of domestic upgrade and replacement demand.