SANY HEAVY IND (ASX: 06031) shares surged more than 5% during the session. At the time of writing, the stock was up 4.77% to HK$20.86, with a turnover of HK$141 million.

Recently, Jefferies published a research report stating that sales of mainland engineering machinery in April saw significant growth driven by replacement and electrification demand. Exports in the first four months of 2026 have already surpassed the full-year 2025 level, with strong performance in African, Oceanian, and Latin American markets, and improvements in EU and US markets. Jefferies reiterated its positive view on the sector. It lowered profit forecasts for SANY HEAVY IND and XCMG for this year and next to reflect weak performance in 2025 and the first quarter of this year, but raised forecasts for Zoomlion Heavy Industry Science and Technology Co., Ltd. (ASX: 01157, 000157.SZ) to reflect its strong revenue last year.

Based on valuation considerations, the firm upgraded its rating for Zoomlion's H-shares and A-shares to "Buy." The target price for Zoomlion H-shares was raised from HK$6.3 to HK$10.9. It maintained a "Buy" rating for SANY HEAVY IND A-shares and initiated coverage on the H-shares with a "Buy" rating and a HK$24 target price. Due to weak earnings, it downgraded XCMG to a "Hold" rating.