Investment Rating - The industry is rated positively, with expectations of overall returns exceeding the CSI 300 Index by more than 5% in the next six months [7]. Core Insights - The report highlights a significant growth in both domestic and export sales of construction machinery in January, indicating a strong upward trend in demand [4][5]. - Domestic sales of key products such as excavators and loaders saw substantial year-on-year increases, with excavator sales reaching 8,723 units, up 61.4%, and loader sales at 5,293 units, up 42.8% [4]. - Export sales also showed robust growth, with excavator exports at 9,985 units, a 40.5% increase, and loader exports at 6,466 units, up 53.4% [5]. - The report anticipates continued improvement in the industry driven by favorable policies in real estate and infrastructure, alongside a renewal cycle for construction machinery [4]. Summary by Sections Domestic Sales Performance - In January, domestic sales of construction machinery experienced high growth, with notable increases in excavators (61.4%) and loaders (42.8%) [4]. - The overall domestic market is expected to continue its upward trajectory due to improved funding and supportive policies [4]. Export Sales Performance - All categories of machinery exports showed year-on-year growth in January, with excavators and loaders seeing increases of 40.5% and 53.4%, respectively [5]. - The report suggests that as overseas market conditions improve, domestic brands will gain further market share internationally [5]. Investment Recommendations - The report recommends a positive outlook for the construction machinery sector, highlighting companies such as SANY Heavy Industry, Hengli Hydraulic, and LiuGong as key investment opportunities [5].

Investment Rating - The report maintains an "Outperform" rating for the engineering machinery sector [1]. Core Insights - January 2026 saw strong sales growth in excavators and loaders, driven by a combination of replacement cycles and external demand. The outlook for 2026 is positive, supported by proactive fiscal policies, stabilization in the European construction sector, and sustained high demand in emerging markets. The report emphasizes the importance of focusing on domestic demand renewal and overseas expansion strategies [5][11]. - The engineering machinery index rose approximately 0.15% in January 2026, underperforming the Shanghai Composite Index by 3.61 percentage points [11]. - Excavator sales in January 2026 reached 18,708 units, a year-on-year increase of 49.5%, with domestic sales at 8,723 units (up 61.4%) and exports at 9,985 units (up 40.5%) [16]. - Loader sales for the same month totaled 11,759 units, reflecting a 48.5% year-on-year increase, with domestic sales of 5,293 units (up 42.8%) and exports of 6,466 units (up 53.4%) [16]. Summary by Sections Market Review - The engineering machinery index in January 2026 increased by about 0.15%, lagging behind major indices such as the Shanghai Composite and CSI 300 [11]. - The performance of different segments showed mixed results, with the average price-to-earnings (PE) ratios for complete machine manufacturing and components being 29 and 39, respectively [11]. Industry Tracking - The report highlights significant growth in excavator and loader sales, with excavators showing a 49.5% increase and loaders a 48.5% increase in January 2026 [16][18]. - The report notes that electric excavators and loaders are gaining traction, with electric loader sales reaching 2,990 units and a penetration rate of 25.43% [16]. Macro Dynamics - The manufacturing PMI for January 2026 was reported at 49.3%, indicating a slight contraction in manufacturing activity. However, production levels remain above the critical point, suggesting ongoing expansion in manufacturing [44]. - Infrastructure investment is supported by the issuance of special bonds amounting to approximately 367.7 billion yuan, a year-on-year increase of 79.5% [5]. Key Targets - Recommended key players in the sector include leading manufacturers such as Zoomlion (000157), Sany Heavy Industry (600031), and XCMG (000425), as well as core component suppliers like Hengli Hydraulic (601100) and Aidi Precision (603638) [5][54].

Investment Rating - The industry is rated as "Positive" [2] - Companies recommended for "Increase" rating include Zhonglian Heavy Industry, Hengli Hydraulic, Jiechang Drive, and Haomai Technology [2] Core Viewpoints - The Spring Festival Gala featured humanoid robots, enhancing brand visibility and commercial acceleration, which is expected to expedite industry deployment [2][29] - The humanoid robot industry remains highly prosperous, with several domestic companies pursuing IPOs and significant events anticipated in 2026 [2][29] - 2026 is identified as a critical year for the development of the humanoid robot industry, suggesting continued investment opportunities in the supply chain [2][29] Industry News - Blue Arrow Aerospace announced the second quarter recovery test for the Zhuque-3 rocket [11] - The average operating rate of construction machinery in January 2026 was 37.15%, with a year-on-year growth rate of 0.71% [11] Industry Data - As of February 13, 2026, the steel comprehensive price index (CSPI) was 90.68 [12] - As of February 24, 2026, WTI and Brent crude oil prices were $66.31 per barrel and $71.11 per barrel, respectively [13] Company Announcements - Zhuozhao Dispensing reported a 202.58% year-on-year increase in revenue for 2025, with expected revenue of approximately 378.59 million yuan [19] - Dazhu Laser plans to invest $150 million to establish an overseas operation center in Southeast Asia [20] Market Review - From February 12 to February 24, 2026, the Shanghai and Shenzhen 300 index fell by 0.13%, while the machinery industry rose by 2.01%, outperforming the index by 2.14 percentage points [21] - As of February 24, 2026, the machinery industry’s price-to-earnings ratio (PE, TTM) was 52.63, with a valuation premium of 270.76% compared to the Shanghai and Shenzhen 300 index [22]

February 13, 2026 02:20 AM GMT China Industrials | Asia Pacific Catalyst Driven Idea - Tesla Optimus Gen 3 Launch Tesla's Gen 3 Optimus is likely to be unveiled in 1Q26. We anticipate that enhancements in hand dexterity and body structure could benefit the China humanoid value chain. What and when is the catalyst? Tesla (covered by Andrew Percoco) has signaled an upcoming Gen 3 Optimus unveil by 1Q26. The China supply chain is highly sensitive to Optimus updates, as indicators of broader industry progress, ...

February 22, 2026 08:06 PM GMT China Industrials | Asia Pacific Humanoid Robots Take Spotlight at China Spring Festival Gala Unitree, Galbot, Noetix and MagicLab appeared at the 2026 Spring Festival Gala. Beyond the headlines and videos, the humanoids showcased different abilities as well as signaling an industry pivot from just locomotive performance. Key Takeaways Well-showcased performance from locomotion to real tasks and emotional value: We view the trajectory as constructive for mass-market adoption. ...

Group 1 - In 2025, China's foreign trade showed strong resilience, with total exports reaching a historical high, growing by 5.5% year-on-year, despite a complex external environment [1][57] - China's trade surplus exceeded $1 trillion for the first time, marking a significant increase of 19.8% year-on-year [1][57] - The net export of goods and services contributed 1.64 percentage points to GDP growth, the second-highest level since 2007, only behind 2021 [3] Group 2 - The diversification of external demand has strengthened, with emerging markets compensating for the decline in exports to the US, which fell by 19.79% year-on-year [6] - Exports to ASEAN, Africa, and the Middle East saw significant growth rates of 25.9%, 13.64%, and 9.7% respectively, contributing positively to the overall export scale [6] - The share of US exports in China's total exports decreased by 3.53 percentage points to 11.15% [6] Group 3 - The product structure of China's foreign trade is shifting towards higher value chains, with high-end products like electrical machinery, machinery, automobiles, and ships being the main export drivers [8] - Traditional light industrial products such as furniture and toys have seen a decline in export scale due to tariff friction and industrial chain relocation [8] Group 4 - The restructuring of global supply chains is creating significant opportunities for Chinese companies, with a notable increase in the number of Chinese enterprises establishing production capacities abroad, reaching 229 in 2025, nearly doubling from 2024 [18] - ASEAN, Mexico, and India are the primary destinations for Chinese production capacity outflows, with ASEAN covering a wide range of industries [18] Group 5 - The AI expansion cycle is a core focus in the Chinese capital market, with significant growth expected in AI computing hardware, supported by macro investment scales and healthy balance sheets of major tech companies [29][30] - The capital expenditure of major cloud service providers is projected to increase significantly, reflecting strong demand for AI computing [35] Group 6 - Cultural and technological value output is becoming a major trend for Chinese enterprises going abroad, with significant growth in IP exports and innovative products in sectors like gaming and new dining [39][41] - The Chinese innovative pharmaceutical sector is increasingly integrated into the global supply chain, with more products commercialized in the US and Europe [41] Group 7 - Key sectors with strong overseas expansion opportunities in 2026 include new energy (batteries, grid equipment), machinery, TMT (technology, media, telecommunications), and innovative pharmaceuticals [46] - The gaming industry is also highlighted for its potential, with significant overseas revenue growth expected [49]

Core Viewpoints - The mechanical industry is expected to embrace "technology + going global" as its dual main lines in 2026, focusing on high elasticity growth opportunities and performance certainty from overseas expansion [13][9][7] 2025 Review Market Performance - In 2025, the mechanical sector achieved a 41% increase, significantly outperforming the CSI 300 index, which rose by 18%, ranking fifth among A-share sub-industries [6][16] - The sub-sectors that performed well included PCB equipment (+252%), 3C equipment (+129%), controllable nuclear fusion (+119%), data centers (+112%), and humanoid robots (+85%) [20][6] Demand Side - Domestic demand showed signs of bottoming out, with a marginal improvement towards the end of 2025, while external demand began to recover positively [31][35] - The manufacturing PMI in December 2025 rebounded to 50.1, indicating a return to expansion territory, driven by large enterprises and high-tech manufacturing [32][35] Cost Side - The cost structure showed a continuous improvement trend, with PPI declining by 2.6% year-on-year in 2025, reflecting insufficient industrial demand [31][33] 2026 Outlook Macro Perspective - The macro narrative for the next five years is centered around "AI commercialization + global re-industrialization," with expectations of a cyclical recovery driven by proactive fiscal policies [6][7] Mid-level Perspective - Technology - The technology sector is expected to see explosive growth, with key areas including data centers, PCB equipment, semiconductor equipment, humanoid robots, and commercial aerospace [7][9] Mid-level Perspective - Going Global - The overseas production capacity is anticipated to enter a release phase in 2026, with significant revenue and profit growth expected for companies in the machinery and equipment sectors [7][8] Investment Recommendations - Investment strategies should focus on high-certainty directions with strong industry trends and competitive advantages, prioritizing stock selection based on industry trends, competitive positioning, and valuation [7][8] - Long-term investments should consider companies with platform capabilities that offer sustainable value [7][8]

Investment Rating - The report maintains a "Market Weight" rating for the mechanical equipment industry, indicating that the industry index is expected to perform within ±10% of the market index over the next six months [45]. Core Insights - The demand for humanoid robots is expected to accelerate in 2026 due to advancements in embodied intelligence, supported by policy backing and rapid technological iterations. The industry is transitioning from concept to mass production, presenting opportunities for investment in the robot sector [3][41]. - The engineering machinery sector shows signs of recovery, with significant growth in excavator sales in January 2026. Factors such as the accelerated issuance of special bonds and global interest rate cuts are expected to boost demand for engineering machinery [3][41]. - The mechanical equipment sector has outperformed the CSI 300 index, with a bi-weekly increase of 4.29%, ranking 4th among 31 sectors [4][12]. Summary by Sections Market Review - As of February 12, 2026, the mechanical equipment industry has seen a bi-weekly increase of 4.29%, outperforming the CSI 300 index by 5.01 percentage points [12]. - The engineering machinery sector recorded the highest bi-weekly increase of 7.80% among the five sub-sectors [15][17]. Valuation Situation - The current PE ratio for the mechanical equipment sector is 36.68, with sub-sectors showing varying valuations: general equipment at 53.27, specialized equipment at 37.85, and engineering machinery at 25.73 [21]. Data Updates - The report highlights significant growth in excavator sales, with domestic sales showing a year-on-year increase of 23.90% in January 2026 [40]. Industry News - The report includes updates on various companies, such as OptoTech planning to raise funds for expanding its industrial automation capabilities [39]. Weekly Insights - The report suggests focusing on companies like Huichuan Technology and Greentec Harmonic for potential investment opportunities in the robot sector, and Sany Heavy Industry and Hengli Hydraulic in the engineering machinery sector [41][43].

Core Viewpoint - The humanoid robot sector is expected to gradually converge by 2026, with Tesla's Optimus moving from the laboratory phase to mass production, highlighting the need to focus on mass production certainty and new technological directions for efficiency improvement or significant cost reduction [1][2]. Industry Core Changes - The humanoid robot industry in 2025 saw significant order placements, primarily from government, data collection, and life service scenarios, with companies like Yuzhu, Zhiyuan, and UBTECH leading in shipment volumes [2]. - The prices of core robot components have significantly decreased due to industrial capital support, although there is still room for improvement in precision and lifespan [2]. - The model end has confirmed the correct path for VLA, with some models beginning to show intelligence, but the lack of sufficient data has prevented the formation of a scaling law cycle in the short term [2]. 2026 Strategy Outlook - The successful iteration of Tesla's Optimus is expected to lead to a large-scale production year in 2026, with key focus areas including Tier 1 suppliers, lead screws, and harmonic reducers, as the supply chain enters a contraction phase [3]. - For flexible robot targets, attention should be paid to technological iterations and cost reduction, with key drivers including improvements in dexterous hands, motors, and lightweight materials [3]. Investment Recommendations - For certainty in direction, focus on Tier 1 suppliers such as Sanhua Intelligent Control and Top Group, lead screws from Hengli Hydraulic and Zhejiang Rongtai, and harmonic reducers from Lide Harmonic and Siling Intelligent Drive [4]. - For technological transformation and cost reduction, key companies to watch include Zhaowei Electromechanical and Hanwei Technology for dexterous hands and electronic skin, Hengshuai Co. and Buke Co. for motors, and Hengbo Co. and Xingyuan Zhuomei for lightweight materials [4].

Core Viewpoint - The report from China Galaxy Securities indicates a significant growth in domestic and foreign sales of excavators in January 2026, with domestic sales increasing by 61.4% and exports by 40.5% [1] Group 1: Excavator Sales - In January, a total of 18,708 excavators were sold, representing a year-on-year increase of 49.5%. Domestic sales accounted for 8,723 units (including 24 electric excavators), up 61.4%, while exports reached 9,985 units (including 11 electric excavators), up 40.5% [1] - The increase in domestic sales is influenced by the Lunar New Year timing, while overseas demand is recovering, particularly in Europe and the U.S., alongside strong metal prices and robust mining market demand in regions like Australia and Africa [1] Group 2: Other Machinery Sales - In December, various types of cranes showed high growth in sales, with truck cranes increasing by 38% overall, and crawler cranes by 68% [2] - For 2025, the overall sales growth for truck cranes is projected at 1.39%, while crawler cranes are expected to see a significant increase of 30% [2] Group 3: Working Hours and Rates - In January, the average working hours for major construction machinery products was 72.5 hours, a year-on-year increase of 23.9%, while the average operating rate was 48.1%, reflecting a year-on-year decrease of 2.63 percentage points [3] - In December, there was an improvement in working hours for Komatsu excavators in North America, Europe, Japan, and Indonesia [3] Group 4: Caterpillar's Market Outlook - Caterpillar reported a year-on-year increase of 11% in end-user sales in Q4 2025, with expectations for moderate growth in North American demand in 2026, supported by strong order levels [4] - The resource business saw a decline in sales due to weak coal prices, but growth is anticipated in 2026 driven by rising demand for copper and gold, as well as heavy construction and aggregate industries [4] Group 5: Recommended Companies - Based on the upward trend in domestic and foreign sales, leading manufacturers such as SANY Heavy Industry, XCMG, Zoomlion, and LiuGong are recommended, along with core component manufacturer Hengli Hydraulic [5]