Investment Rating - The report maintains a "Standard" investment 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 [40]. Core Insights - The application scenarios for humanoid robots are expected to accelerate, supported by infrastructure projects that bolster domestic engineering machinery demand [1][3]. - The mechanical equipment sector has shown a bi-weekly increase of 1.84%, outperforming the CSI 300 index by 0.82 percentage points, ranking 14th among 31 sectors [11][15]. - The engineering machinery sub-sector has the highest growth, with a bi-weekly increase of 4.17% and a monthly increase of 9.36% [18]. Summary by Sections Market Review - As of July 31, 2025, the mechanical equipment industry has increased by 1.84% bi-weekly, 5.67% monthly, and 15.49% year-to-date, outperforming the CSI 300 index by 0.82, 2.12, and 11.92 percentage points respectively [11][15]. Valuation Situation - The current PE TTM for the mechanical equipment sector is 28.51 times, with sub-sectors showing varied valuations: General Equipment at 36.24, Specialized Equipment at 28.01, Engineering Machinery at 21.35, and Automation Equipment at 47.37 [2][22]. Industry News - The commencement of the Yarlung Tsangpo River downstream hydropower project on July 19 is expected to significantly support long-term demand for domestic engineering machinery [3][34]. - The global robot market is projected to exceed $400 billion by 2029, with China accounting for nearly 50% of this market [34]. Company Announcements - Companies such as Huichuan Technology and Green's Harmonic are recommended for attention due to their strong market positions and growth potential in the humanoid robot and servo product sectors [36][37]. Weekly Insights - The report highlights the anticipated launch of Tesla's Optimus Gen3 humanoid robot and the introduction of a medical care robot by Fourier, indicating a growing trend in humanoid robot applications [3][36].

Group 1 - The engineering machinery sector showed a 12.29% increase in H1 2025, outperforming the Shanghai and Shenzhen 300 index by 8.97% [13][15] - The sector's five-year PE TTM is 18.66, slightly below the average of 19.73, indicating a valuation at the 40.39 percentile over the past five years [15] - In Q1 2025, the sector's revenue and net profit reached 964.40 billion and 94.78 billion respectively, with year-on-year growth rates of 10.62% and 31.15% [17][19] Group 2 - Domestic sales of excavators in June 2025 reached 8,136 units, a year-on-year increase of 6.20%, supported by infrastructure investments and equipment replacement policies [40][44] - The cumulative sales of excavators in H1 2025 were 120,520 units, reflecting a 16.77% year-on-year growth [40][44] - The construction machinery sector is expected to benefit from significant projects like the Yarlung Tsangpo River hydropower project, which has a total investment of approximately 1,200 billion [50][53] Group 3 - Excavator exports in June 2025 totaled 10,668 units, marking a 19.30% year-on-year increase, with the U.S. being a major market [54][59] - The total export value of excavators in H1 2025 was approximately 4.89 billion USD, reflecting a year-on-year growth of 22.83% [57][59] - The average export price for excavators to the U.S. was around 6,400 USD per unit, indicating a demand for smaller, general-purpose equipment [59][62] Group 4 - The penetration rate of electric machinery is increasing, with policies from the government aimed at phasing out older equipment and promoting the transition to new energy [67][71] - The electric machinery market is expected to grow significantly, with electric forklifts and loaders showing high penetration rates of 53.52% and 12.78% respectively [71][75] - The overall electric machinery penetration rate in China is projected to reach approximately 29.60% by 2024 [71][72] Group 5 - The investment recommendation maintains a "market perform" rating, with a focus on companies such as SANY Heavy Industry, XCMG, Zoomlion, LiuGong, and Hengli Hydraulic [84]

Group 1: Investment Trends in Chinese Assets - Since July, five large overseas Chinese stock ETFs have attracted over $2.753 billion in investments, indicating a growing interest from foreign capital [1] - As of July 25, 2025, the cumulative trading volume of Korean retail investors in Chinese stocks (including A-shares and Hong Kong stocks) reached $5.764 billion, making China the second-largest overseas investment destination for Korean investors [2] Group 2: Performance of Chinese Stock ETFs - The MSCI China ETF-iShares saw its assets grow to $7.187 billion, a 12.38% increase from the end of June [1] - The China Overseas Internet ETF-KraneShares increased its assets by 20% to $7.648 billion [1] - The Direxion 3x Long FTSE China ETF's assets rose by 14.13% to $1.253 billion [1] - The Deutsche Bank-Jaishin CSI 300 A-share ETF's assets grew by 10.54% to $2.108 billion [1] - The iShares China Large-Cap ETF's assets increased by 5.32% to $6.53 billion [1] Group 3: Positive Outlook on Chinese Assets - Goldman Sachs expressed optimism about the value re-evaluation of Chinese assets, citing robust GDP growth and a recovering Hong Kong IPO market as key factors [3] - The MSCI China Index and the CSI 300 Index reached near four-year highs, indicating a potential 11% upside in the next 12 months according to Goldman Sachs [3] - Allianz's research department noted that the current valuation of Chinese stocks shows significant discount compared to historical averages, suggesting substantial room for value re-evaluation [4]

金融界消息 截至2025年7月29日收盘，恒立液压（601100）报收于75.8元，上涨0.95%，换手率0.61%， 成交量8.12万手，成交金额6.14亿元。 资金流向方面，今日主力资金净流出1647.75万元，占比成交额2.68%。其中，超大单净流出135.39万 元、占成交额0.22%，大单净流出1512.36万元、占成交额2.46%，中单净流出流入1035.64万元、占成交 额1.69%，小单净流入612.11万元、占成交额1.0%。 恒立液压最新一期业绩显示，截至2025一季报，公司营业总收入24.22亿元、同比增长2.56%，归属净利 润6.18亿元，同比增长2.61%，扣非净利润6.82亿元，同比增长16.42%，流动比率4.514、速动比率 3.926、资产负债率17.73%。 天眼查商业履历信息显示，江苏恒立液压股份有限公司，成立于2005年，位于常州市，是一家以从事通 用设备制造业为主的企业。企业注册资本134082.0992万人民币，实缴资本134082.0992万人民币。公司 法定代表人为汪立平。 通过天眼查大数据分析，江苏恒立液压股份有限公司共对外投资了9家企业，参与招投标项目33 ...

Investment Rating - The report maintains an "Outperform" rating for the machinery sector, indicating expected performance above the market average [1]. Core Insights - The report highlights the trend of companies expanding overseas and identifies 2025 as the year of mass production for humanoid robots, presenting hardware investment opportunities [1][3]. - The easing of trade tensions between China and the US is expected to support the growth of domestic companies in overseas markets, particularly in the tool market where relocation to the US is challenging due to cost and efficiency advantages [3]. - Key companies to watch include Giant Technology, Changrun Co., Honghua Digital Science, and others, which are positioned to benefit from these trends [3][4]. Summary by Sections Recommended Stocks - The report lists preferred stocks with ratings: - Jack Co. (603337.SH) - Buy-A - Hengli Hydraulic (601100.SH) - Buy-A - Zhejiang Rongtai (603119.SH) - Accumulate-A - Qiaocheng Ultrasonic (688392.SH) - Buy-A - Honghua Digital Science (688789.SH) - Buy-A - Tianzhun Technology (688003.SH) - Buy-A - Jiechang Drive (603583.SH) - Accumulate-A [2][10]. Industry Key Data Tracking - Forklifts: In June 2025, 137,570 units were sold, a 23.1% increase year-on-year. For the first half of 2025, sales totaled 739,334 units, up 11.7% [13]. - Excavators: June 2025 sales reached 18,804 units, a 13.3% increase. Total sales for the first half were 120,520 units, up 16.8% [14]. - Automotive Cranes: June sales were 1,649 units, down 5.28%. Total sales for the first half were 10,752 units, down 8.4% [17]. - Tower Cranes: June sales were 437 units, down 44.8%. Total sales for the first half were 2,771 units, down 38% [21]. - Loaders: June sales were 12,014 units, up 11.3%. Total sales for the first half were 64,769 units, up 13.6% [22]. - Metal Cutting Machine Tools: June production was 70,500 units, up 12.7%. Total production for the first half was 403,000 units, up 13.5% [24]. - Industrial Robots: June production was 74,764 units, up 37.9%. Total production for the first half was 379,000 units, up 35.6% [28].

Investment Rating - The report maintains a positive outlook on the mechanical equipment sector, with specific recommendations for companies such as Yingliu Co., Sany Heavy Industry, XCMG, Zoomlion, LiuGong, and Hengli Hydraulic [11]. Core Insights - GEV's new gas turbine orders increased by 35.56% year-on-year in the first half of 2025, indicating a strong demand in the gas turbine industry [25]. - Tesla's humanoid robot, Optimus Gen3, is set to launch a prototype within three months, with production expected to start in early 2026, which is anticipated to positively impact the robotics industry [25]. - The commencement of the Yaxia Hydropower Station project, with an estimated total investment of 1.2 trillion yuan, is expected to accelerate the recovery of domestic engineering machinery sales [25]. - The "Industrial Mother Machine+" initiative is driving domestic substitution and industrial upgrades, particularly in sectors like aerospace and new energy vehicles [25]. - The report highlights a robust demand for engineering machinery, with excavator sales showing resilience and growth in both domestic and international markets [30]. Summary by Sections Market Review - The SW Mechanical Equipment Index rose by 2.56% over the past week, outperforming the CSI 300 Index, which increased by 1.69% [14][15]. Key Data Tracking - General machinery sector remains under pressure, while engineering machinery shows a steady upward trend with excavator sales increasing by 13.3% year-on-year in June 2025 [23][30]. - The gas turbine sector is experiencing a robust upward trend, with GEV's new orders indicating a significant recovery [50]. Industry Dynamics - The report notes a stable growth in railway equipment investments, maintaining around 6% growth in 2025 [39]. - The shipbuilding sector is showing signs of marginal improvement after a period of decline, with new ship price indices stabilizing [41]. - Oil service equipment is showing signs of bottoming out, with global rig counts increasing, indicating a recovery in oil service demand [42].

Investment Rating - The industry investment rating is "Overweight" [12] Core Viewpoints - The commencement of the Yarlung Zangbo River downstream hydropower project is expected to significantly benefit the engineering machinery sector, with a total investment of approximately 1.2 trillion yuan, making it the highest investment project in a single country [5][6] - The project will require a high degree of mechanization, with a projected demand for engineering machinery equipment amounting to about 120 billion yuan, which is estimated to be 10% of the total investment [5][6] - The geological conditions favor the use of tunnel boring machines (TBM), leading to an expected increase in the proportion of TBM construction methods [4][5] Summary by Sections General Engineering Machinery - General engineering machinery such as excavators, cranes, concrete machinery, and aerial work platforms will see increased demand due to the project's construction cycle and local conditions [4] - The demand for larger and electric equipment is anticipated to be higher, reflecting greater profitability for companies [4] Tunnel Boring Machinery - The project will utilize TBM and other drilling equipment, with expectations of more extensive tunnel construction compared to previous projects [4][5] - The average length of tunnels in similar projects has been noted to be around 16.7 kilometers, with the Yarlung Zangbo project expected to have even longer tunnels [4][5] Large Cable Cranes - Large cable cranes will be essential for transporting concrete and installing metal structures in the challenging mountainous terrain [4] Key Beneficiaries - Core companies to focus on include Sany Heavy Industry, XCMG, Zoomlion, LiuGong, and others for general engineering machinery; China Railway Engineering Corporation and others for tunnel boring machinery; and Farlantech for cable cranes [6]

Investment Rating - The report assigns an "Increase Holding" rating for the industry [4]. Core Insights - The new cycloidal reducer is expected to become an alternative option following harmonic and planetary reducers, with significant investment opportunities emerging [2][4]. - The report highlights the advancements in cycloidal reducers, which are anticipated to address the performance shortcomings of harmonic and planetary reducers, particularly in humanoid robots [4]. Summary by Sections Industry Overview - The humanoid robot sector is experiencing rapid changes, with a focus on the development of lightweight and efficient cycloidal gear solutions [2][4]. Investment Recommendations - The report suggests monitoring companies such as Zhongchen Technology, Shuanghuan Transmission, and Landai Technology for rotary joint modules. For linear actuator modules, Hengli Hydraulic is recommended, along with Zhejiang Rongtai and Demais [4]. - In the motor segment, Mingzhi Electric is highlighted, while encoder companies to watch include Yapu Co. and Fengtiao Technology. For dexterous hands and sensors, Hanwei Technology and Zhaowei Electromechanical are recommended, and for structural components, Changying Precision is noted [4]. Technical Advancements - The report discusses the technical improvements in cycloidal reducers, which are expected to enhance their adoption in humanoid robots. The torque coverage has expanded from 10N·M to 140N·M, with a fivefold overload capacity [4]. - Companies like Hechuan Technology and Keda Li's subsidiary, Kemei, are making strides in lightweight cycloidal reducers, with weight reductions of up to 73% compared to traditional models [4]. Market Dynamics - The humanoid robot joint transmission solutions are entering a phase of refined adaptation, with the potential for precise selection based on joint load characteristics. This could lead to a collaborative ecosystem of various types of reducers, accelerating commercialization [4].

Investment Rating - The industry is rated as "Positive" for the next 12 months, indicating an expected increase in performance relative to the CSI 300 index [30][38]. Core Views - The Yarlung Tsangpo River downstream hydropower project officially commenced on July 19, with a total investment of approximately 1.2 trillion yuan, which is expected to generate a demand for construction machinery of around 180 billion yuan [30][11]. - Excavator sales in June 2025 reached 18,800 units, a year-on-year increase of 13.3%, with total sales for the first half of the year at 120,500 units, up 16.8% year-on-year [30][4]. - The average operating rate of construction machinery nationwide in the first half of 2025 was 44.81%, indicating stable progress in infrastructure projects [30][11]. Industry News - The Yarlung Tsangpo River downstream hydropower project officially started on July 19, 2025, with a total investment of approximately 1.2 trillion yuan [11]. - UBTECH won a procurement project for robotic equipment worth 90.5115 million yuan, marking one of the largest single procurement orders in the industry [11]. - The average operating rate of construction machinery in the first half of 2025 was 44.81%, with 15 provinces exceeding 50% [11]. Company Announcements - Dongfang Precision signed a strategic cooperation agreement with Leju Robotics on July 21, 2025, focusing on humanoid robots [18]. - Kory Technology plans to increase its wholly-owned subsidiary Kory Technology's capital by 300 million yuan [19]. Market Review - From July 16 to July 22, 2025, the CSI 300 index rose by 2.49%, while the Shenwan Machinery Equipment Industry increased by 5.05%, outperforming the CSI 300 by 2.57 percentage points [20][3]. - As of July 22, 2025, the price-to-earnings ratio (TTM) for the Shenwan Machinery Equipment Industry was 28.92 times, with a valuation premium of 126.54% compared to the CSI 300 [21][3].

Investment Rating - The report maintains an "Accumulate" rating for the engineering machinery industry [1] Core Insights - The commencement of the Yarlung Tsangpo River downstream hydropower project presents significant opportunities for the engineering machinery industry, with a total investment of approximately 1.2 trillion yuan and an expected annual power generation of 300 billion kWh, which is three times that of the Three Gorges Dam [1][2] - The project is expected to drive domestic demand for engineering machinery, with a projected demand increase of 100-150 billion yuan annually, potentially rising to 150-200 billion yuan when considering electrification and automation trends [2] - The overseas market for engineering machinery is showing signs of recovery, with a significant portion of profits (over 80%) coming from international markets, particularly in regions like Indonesia, South America, Africa, the Middle East, and Europe [3] Summary by Sections Yarlung Tsangpo Project Impact - The Yarlung Tsangpo project involves the construction of five hydropower stations with a total installed capacity of 60 GW, significantly boosting the demand for various types of engineering machinery [1][2] Electrification and Automation - The high-altitude environment of the project site is expected to favor the adoption of electric and unmanned machinery, enhancing the value of each unit and increasing the overall market size beyond initial estimates [2] Profitability and Market Trends - The report anticipates a profit increase of 30-40 billion yuan annually for major machinery manufacturers, with an overall profit estimate of 170 billion yuan for 2024, reflecting a profit elasticity of over 20% [2] - The domestic non-excavation segment is expected to recover, reducing profit drag on major manufacturers, with gross margins projected to improve from 15% to 20% by mid-2025 [3] Investment Recommendations - The report suggests that large infrastructure projects will boost domestic demand, indicating a clear upward trend in the industry [4]