image credit: Bamboo Works
Key Takeaways:
Heavy equipment maker Shantui Construction has filed to list in Hong Kong, reporting its profit climbed 9% last year
The company's overseas operations boast much higher gross margins than its domestic business, while its excavator sales are expanding rapidly
Data centers and cloud services aren't the only beneficiaries of a recent building boom for AI infrastructure. Another group reaping business from the boom is companies providing the machinery used to build those centers. Now, one of those, construction machinery maker Shantui Construction Machinery Co. Ltd. (000680.SZ), has applied to list in Hong Kong. The company is already listed in Shenzhen, and its Hong Kong IPO joins a recent tide of Chinese companies seeking such second listings to broaden their investor bases.
Formerly known as Shandong Dozer General Factory, Shantui Construction is a vital piece of the larger Shandong Heavy Industry Group, whose portfolio also includes other dual-listed companies like Weichai Power (000338.SZ, 2338.HK) and Sinotruk (000951.SZ, 3808.HK). The parent is currently Shantui Construction's largest shareholder, directly holding 24.29% of the company, while it indirectly owns additional shares through Weichai Power's 15.78% stake.
Carried by bulldozers
Shantui Construction's products cover two primary segments: construction machinery and components. The construction machinery segment spans bulldozers, excavators, loaders, road machinery, mining trucks and concrete machinery. Components primarily focus on undercarriages and transmission parts.
The bulldozer segment was historically the company's cash cow. In 2025, Shantui Construciton commanded 10.2% of the global bulldozer market, ranking third worldwide. It is China's undisputed leader in that area with 63% of the market, continuously holding the top spot since 2004. The bulldozer business generated 1.32 billion yuan ($194 million) in gross profit for the company last year, representing 43.5% of its total gross profit of 3.03 billion yuan.
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