Summary of Key Points from the Conference Call Industry Overview - The global machinery sector is undergoing a significant re-rating due to the increasing recognition of traditional cyclical companies for their exposure to structural growth drivers such as automation, AIDC (Automatic Identification and Data Capture), digitalization, and the adoption of autonomous mobile robots (AMRs) [2][9][10] - The MSCI World Industrials Index has shown strong year-to-date performance, with major stocks outperforming, indicating a positive shift in investor sentiment towards the machinery sector [2][36] Core Companies Discussed - **Caterpillar (CAT)**: Positioned to benefit from cyclical upturns in construction and infrastructure activity, particularly in North America. The company reported a 30%+ year-over-year surge in power generation sales to AI data center developers [11][23] - **Weichai**: Noted for its leadership in AIDC back-up engines and robotics through Kion. The company is expected to see substantial growth in its data center power generator sales, with projections indicating a rise from Rmb0.8 billion in 2024 to approximately Rmb13 billion by 2028 [12][14] - **Hengli Hydraulic**: Focused on factory automation and robotics, with investments in proprietary components. The company is expected to benefit from the next wave of automation-driven growth [20][21] - **Sany and XCMG**: Both companies are experiencing robust demand trends, with Sany emphasizing high-quality growth and XCMG reporting significant revenue increases in core segments [25][36] Key Growth Drivers - The demand for AIDC and data center power generation is projected to grow significantly, with an estimated total addressable market exceeding $100 billion between 2026 and 2028 [11] - The Chinese data center diesel generator market is expected to grow at a compound annual growth rate (CAGR) of approximately 51% year-over-year, with domestic brands gaining market share [13][17] - Automation, digitalization, and AMRs are central to the growth strategies of companies like Kion, which is focusing on modernization and upgrade projects in logistics and manufacturing [19] Market Dynamics - The machinery cycle is improving, with signs of recovery in both China and global markets. China is forecasted to deliver approximately 12% year-over-year growth in 2025, while North America is expected to see a decline followed by a return to growth [22][23] - Margin expansion is a key theme across the sector, driven by a focus on high-quality growth, cost optimization, and digital transformation initiatives [33][35] Investment Outlook - The report maintains an Overweight rating on several companies, including Caterpillar, Kion, Weichai, Hengli Hydraulic, Sany, and XCMG, indicating a bullish outlook for the sector [2][36] - Despite strong sector performance, Weichai's stock is viewed as undervalued, with expectations for a catch-up as the market recognizes its structural growth drivers [37] Conclusion - The global machinery sector is positioned for long-term growth driven by automation and digitalization, with key players like Caterpillar, Weichai, Hengli, Sany, and XCMG leading the charge. The evolving market dynamics and improving machinery cycle present significant investment opportunities [2][10][36]

Market Overview - The engineering machinery sector increased by 1.85% on November 6, with Hengli Hydraulic leading the gains [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] Stock Performance - Hengli Hydraulic (601100) closed at 93.15, up 6.66% with a trading volume of 110,000 shares and a transaction value of 1.004 billion [1] - Zoomlion Heavy Industry (000157) closed at 8.63, up 2.98% with a trading volume of 1.4719 million shares and a transaction value of 1.261 billion [1] - Xiamen XGMA (600815) closed at 3.80, up 2.43% with a trading volume of 4.7292 million shares and a transaction value of 1.863 billion [1] - Other notable performers include Hangcha Group (603298) up 2.23% and Zhejiang Dingli (603338) up 1.81% [1] Capital Flow - The engineering machinery sector experienced a net outflow of 201 million from institutional investors and 183 million from retail investors, while retail investors saw a net inflow of 384 million [2][3] - Major stocks like Zoomlion Heavy Industry had a net inflow of 63.06 million from institutional investors but a net outflow from retail investors [3] - Hengli Hydraulic had a net inflow of 21.10 million from institutional investors, indicating mixed investor sentiment [3]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2]. Core Views - The company is positioned as a benchmark in the domestic hydraulic industry, focusing on the development of hydraulic transmission control equipment and systems integration, with a significant emphasis on non-standard hydraulic cylinders and valves [5][6]. - The hydraulic industry is entering an upward phase, driven by favorable policies and accelerating domestic substitution, particularly in the engineering machinery sector [6][40]. - The company has invested 1.4 billion yuan in a linear actuator project, which is expected to enhance its product offerings and market reach [2][18]. Financial Summary - The company's projected net profit for 2025, 2026, and 2027 is estimated at 2.747 billion, 3.220 billion, and 3.665 billion yuan, respectively, with corresponding PE ratios of 42.63, 36.36, and 31.95 times [2][3]. - Revenue is expected to grow from 8.985 billion yuan in 2023 to 13.897 billion yuan in 2027, reflecting a compound annual growth rate (CAGR) of approximately 14.71% [3][4]. - The company’s net profit margin is projected to remain stable, with a slight increase in profitability expected over the forecast period [25][28]. Industry Outlook - The hydraulic industry is projected to grow significantly, with the global market expected to reach approximately 51.57 billion USD by 2024 and 77.82 billion USD by 2034, indicating a CAGR of 4.2% [40][43]. - The domestic excavator market is recovering, with sales expected to increase significantly in the coming years, driven by infrastructure investment and equipment upgrades [41][49]. - The company is well-positioned to benefit from the increasing demand for hydraulic components in various sectors, including construction and agriculture, as the market shifts towards high-efficiency and energy-saving hydraulic systems [6][44].

Group 1 - As of October 31, 2025, Jiangsu has a total of 715 listed companies, including 220 on the Shanghai Stock Exchange Main Board, 114 on the Sci-Tech Innovation Board, 125 on the Shenzhen Stock Exchange Main Board (including one pure B-share), 203 on the Growth Enterprise Market, and 53 on the Beijing Stock Exchange [1] - In October 2025, Jiangsu added one new listed company (Changjiang Nengke), bringing the total number of new listings in 2025 to 21 [1] - The total market capitalization of the 714 listed companies in Jiangsu is 85,985.35 billion yuan, accounting for 13.12% of the total number of A-share listed companies and 8.01% of their total market capitalization [3] Group 2 - As of October 31, 2025, the companies in Jiangsu with a market capitalization exceeding 100 billion yuan (excluding the Beijing Stock Exchange) include Hengrui Medicine, WuXi AppTec, Jiangsu Bank, Guodian Nari, Huatai Securities, Nanjing Bank, Huidian Co., S. Hengli Hydraulic, Dongshan Precision, Xugong Machinery, Tianfu Communication, and Yanghe Brewery [5] - The bottom ten ranked A-share listed companies in Jiangsu (excluding the Beijing Stock Exchange) are Yangzi New Materials, Nanwei Co., Guangge Technology, Xuelang Environment, Zhongshe Co., *ST Hengjiu, Ailong Technology, Jinpu Garden, *ST Tianlong, and *ST Suwu [7] - In October 2025, Jiangsu's A-share listed companies had a total of 3 financing events, raising a total of 1.269 billion yuan, while the total financing events for the year reached 49, raising a total of 61.438 billion yuan [7]

Core Viewpoint - Hengli Hydraulic's stock price has shown significant volatility, with a year-to-date increase of 71.15%, but a recent decline of 7.65% over the past five trading days [1] Financial Performance - For the period from January to September 2025, Hengli Hydraulic achieved a revenue of 7.79 billion yuan, representing a year-on-year growth of 12.31% [2] - The net profit attributable to shareholders for the same period was 2.09 billion yuan, reflecting a year-on-year increase of 16.49% [2] Shareholder Information - As of September 30, 2025, the number of shareholders for Hengli Hydraulic was 36,900, a decrease of 15.76% from the previous period [2] - The average number of circulating shares per shareholder increased by 18.70% to 36,379 shares [2] Dividend Distribution - Since its A-share listing, Hengli Hydraulic has distributed a total of 6.18 billion yuan in dividends, with 3.11 billion yuan distributed over the last three years [3] Institutional Holdings - As of September 30, 2025, Hong Kong Central Clearing Limited was the fourth-largest circulating shareholder, holding 118 million shares, an increase of 15.19 million shares from the previous period [3] - Huatai-PB CSI 300 ETF and E Fund CSI 300 ETF saw reductions in their holdings, with decreases of 412,000 shares and 179,200 shares, respectively [3]

Core Viewpoint - Jiangsu Hengli Hydraulic Co., Ltd. will hold a Q3 2025 performance briefing on November 28, 2025, to discuss its operational results and financial status with investors [2][3][4]. Group 1: Meeting Details - The performance briefing is scheduled for November 28, 2025, from 15:00 to 16:00 [4]. - The meeting will take place at the Shanghai Stock Exchange Roadshow Center and will be conducted in an interactive online format [4][5]. - Investors can submit questions from November 21 to November 27, 2025, through the Roadshow Center website or via the company's email [5]. Group 2: Participants - Key participants in the meeting will include General Manager Qiu Yongning, Secretary of the Board Zhang Xiaofang, and Chief Financial Officer Peng Mei, along with independent directors [4]. Group 3: Post-Meeting Information - After the briefing, investors can access the meeting's details and main content through the Shanghai Stock Exchange Roadshow Center [6].

Core Viewpoint - Hengli Hydraulic announced its profit distribution plan for the first half of 2025, which includes a cash dividend of 0.30 yuan per share (tax included) for A-shares [2] Summary by Categories - **Dividend Announcement** - The cash dividend of 0.30 yuan per share will be distributed to shareholders [2] - The record date for the dividend is set for November 13, 2025 [2] - The ex-dividend date is scheduled for November 14, 2025 [2]

证券代码：601100 证券简称：恒立液压 公告编号：2025-033 江苏恒立液压股份有限公司 关于召开 2025 年第三季度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： https://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 投资者可于 2025 年 11 月 21 日 （星期五） 至 11 月 27 日 （星 期四）16:00 前登录上证路演中心网站首页点击"提问预征集"栏目 或通过公司邮箱 hlzqb@hengli.net 进行提问。公司将在说明会上对 投资者普遍关注的问题进行回答。 江苏恒立液压股份有限公司（以下简称"公司"）已于 2025 年 11 月 28 日发布公司 2025 年第三季度报告，为便于广大投资者更全 面深入地了解公司 2025 年第三季度经营成果、财务状况，公司计划 于 2025 年 11 月 28 日（星期五）15:00-16:00 举行 2025 年第三季度 业绩说明会，就投资者关心的问题进行交流。 会议召开时间：2 ...

证券代码：601100 证券简称：恒立液压 公告编号：2025-031 江苏恒立液压股份有限公司 2025年半年度权益分派实施公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗 漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 每股分配比例 A 股每股现金红利0.30元 相关日期 | 股份类别 | 股权登记日 | 最后交易日 | 除权（息）日 | 现金红利发放日 | | --- | --- | --- | --- | --- | | Ａ股 | 2025/11/13 | － | 2025/11/14 | 2025/11/14 | 差异化分红送转： 否 一、 通过分配方案的股东会届次和日期 本次利润分配方案经公司2025 年 9 月 19 日的2025年第一次临时股东会审议通过。 二、 分配方案 截至股权登记日下午上海证券交易所收市后，在中国证券登记结算有限责任公司上海分 公司（以下简称"中国结算上海分公司"）登记在册的本公司全体股东。 3. 分配方案： 本次利润分配以方案实施前的公司总股本1,340,820,992股为基数，每股派发现金红利 0.30元（含税） ...

Core Points - Hengli Hydraulic (601100.SH) announced a cash dividend distribution of 0.30 yuan per share (including tax), totaling 402 million yuan based on a total share capital of 1.341 billion shares [1][1][1] - The record date for the dividend distribution is November 13, 2025, and the ex-dividend date is November 14, 2025 [1][1][1]