Two Sessions Release Policy Signals on Equipment Upgrades and Infrastructure Acceleration, Noda Machinery Surges to Daily Limit

(Source: Caixin)

Southern Road Machinery has explicitly stated in investor Q&A that the national push for large-scale equipment upgrades will have a positive impact on multiple product lines, especially in the three major sectors: engineering mixing equipment, material handling equipment, and solid waste treatment equipment.

The 2026 National Two Sessions have successfully concluded. As an annual “weather vane” for economic work, the policy signals released by the meetings are injecting new vitality into the capital markets.

Among the key topics mentioned during the meetings—large-scale equipment upgrades, increased infrastructure investment, and green low-carbon initiatives—are opening further growth opportunities for the construction machinery and building materials equipment industry.

On March 13, Southern Road Machinery (603280.SH) hit the daily limit. Clearly, in the market’s view, as one of the few industry players capable of providing comprehensive solutions across the entire engineering mixing industry chain, Southern Road Machinery is expected to be a significant beneficiary of this round of policy dividends.

For Southern Road Machinery, the large-scale equipment upgrades discussed at this year’s Two Sessions are likely to serve as a core growth engine for the company’s development.

On March 5, Premier Li Qiang of the State Council mentioned in the government work report that efforts will continue to upgrade key industries, with a new batch of major technological transformation and upgrade projects planned. Additionally, 200 billion yuan in ultra-long-term special government bonds will be allocated to support large-scale equipment upgrades.

In January this year, the National Development and Reform Commission disclosed that the first batch of 93.6 billion yuan in ultra-long-term special bonds supporting equipment upgrades had already been allocated, driving total investments exceeding 460 billion yuan.

Industry insiders believe that the construction machinery sector naturally experiences an 8-10 year replacement cycle. Coupled with strong policy support, the demand for updating and renovating existing equipment is accelerating.

Previously, Southern Road Machinery explicitly stated in investor Q&A that the national push for large-scale equipment upgrades will positively impact multiple product lines, especially in engineering mixing equipment, material handling equipment, and solid waste treatment equipment. Overall, with continued national efforts on equipment renewal, along with the company’s advantages in technology R&D, product quality, and after-sales service, it is expected to bring substantial business growth opportunities.

In addition to large-scale equipment upgrades, increased infrastructure investment is also a key focus of this year’s Two Sessions.

The government work report emphasized supporting the construction of major projects, including 23 initiatives related to the national comprehensive three-dimensional transportation network, new energy systems, new infrastructure, and foreign open platforms, aiming to build a modern infrastructure system. This suggests that large infrastructure projects such as ultra-high voltage power transmission, hydropower, and transportation may continue to advance.

Public information shows that Southern Road Machinery has established its own unique advantages in large-scale infrastructure. Previously, intelligent equipment developed and transferred by Southern Road Machinery has been successfully used in national strategic projects such as the Hong Kong-Zhuhai-Macau Bridge, Shenzhen Greater Bay Area construction, China General Nuclear Power Corporation’s nuclear power projects, the Shenzhong Channel, and the Jingxin Expressway (the longest desert highway), all of which have strict quality requirements for construction machinery. Notably, China General Nuclear Power’s nuclear projects marked the entry of domestically自主品牌搅拌站 into the nuclear power field. In the Hong Kong-Zhuhai-Macau Bridge project, Southern Road Machinery’s shaping and sand-making equipment was used for aggregate production lines required for bridge deck paving, demonstrating industry-leading aggregate processing technology.

Furthermore, the government work report mentions that continuing to promote green and low-carbon transformation in key areas is one of the main goals during the “14th Five-Year Plan” period. The “14th Five-Year Plan” outline also emphasizes “accelerating the development of green and low-carbon modes” and “carrying out全民绿色低碳行动” as priorities.

Southern Road Machinery is a provider and service provider of construction waste resource utilization solutions. As early as 2010, the company officially entered the construction solid waste treatment industry, addressing coarse aggregate crushing issues. In 2012, it developed dry-type sand-making equipment to solve fine aggregate processing problems, replacing river sand with high-quality manufactured sand. By the end of that year, Southern Road Machinery assembled a team dedicated to research and production of construction waste recycling systems. Currently, the company has formed a full industry chain and multi-layered product system covering “raw aggregate processing equipment—engineering mixing equipment—aggregate resource regeneration equipment,” with multiple construction waste resource utilization projects and recycling industry parks in operation. The company provides decarbonization pathways for industries such as mining, building materials, infrastructure, and construction, helping these sectors achieve carbon reduction targets.