Core Points - Guangxi Liugong Zhanzheng has established a partnership with Future Industry Investment Fund, with a total investment of 1 billion RMB [1] - The fund's operational scope includes private equity investment, investment management, and asset management [1] - The partners of the fund include Guangxi Liugong Group, Guangxi Investment Guidance Fund, and Guangxi Xinshi Sheng Private Fund Management Co., Ltd. [1] Group 1 - The fund was registered on September 18, 2025, and has a business term until September 18, 2042 [2] - The fund's registered capital is 1 billion RMB, with Guangxi Liugong Group contributing 509 million RMB, which is 50.9% of the total [2] - Guangxi Investment Guidance Fund holds a 49% stake, contributing 490 million RMB [2]

Core Insights - On September 18, a new partnership named Guangxi Liugong Zhanxing and Future Industry Investment Fund Partnership (Limited Partnership) was established, with a total investment of 1 billion RMB [1] Group 1: Fund Structure and Management - The executing partner of the fund is Guangxi Xinshi Sheng Private Fund Management Co., Ltd., which will oversee the fund's operations [1] - The fund's activities include private equity investment, investment management, asset management, and venture capital [1] Group 2: Contributors - The fund is jointly funded by Guangxi Liugong Group Co., Ltd., Guangxi Investment Guidance Fund Co., Ltd., and Guangxi Xinshi Sheng Private Fund Management Co., Ltd. [1]

Group 1 - The establishment of the Guangxi Liugong Zhanxing and Future Industry Investment Fund Partnership has been announced, with a total investment amount of 1 billion yuan [1] - The fund's business scope includes private equity investment, investment management, and asset management activities [1] - The fund is co-funded by Guangxi Liugong Group Co., Ltd. and other partners [1]

Group 1 - The core viewpoint of the article highlights that LiuGong (000528.SZ) is experiencing significant growth in its overseas electric product revenue, with an expected year-on-year increase of over 380% in 2024 [1] - In the first half of 2025, global sales of electric loaders are projected to rise by 193% year-on-year, indicating strong market demand and performance [1] - LiuGong has established a competitive advantage in regions such as Europe and Southeast Asia, maintaining a trend of high growth, high gross margins, and high brand value [1] Group 2 - The company is recognized as one of the earliest brands to develop fully electric equipment and solutions for various scenarios in the construction machinery sector [1] - LiuGong has participated in the formulation of multiple national and global electric technology standards, showcasing its leadership in the industry [1] - The company has developed 13 product lines with over 110 electric products and achieved sales in more than 40 countries and regions, positioning itself as a leader in the electrification and intelligent development of construction machinery [1]

Group 1 - The company has 25 manufacturing bases globally, with three overseas bases located in India, Brazil, and Indonesia [1] - The Indian factory has been operating well since 2008, and the company plans to invest 187.7 million yuan for upgrades by August 2024 [1] - A new high-standard manufacturing plant is set to be established in Indonesia with an investment of 500 million yuan by August 2025 [1] Group 2 - The company has entered a phase of global strategy implementation after over 20 years of overseas expansion [1] - The focus is on local operations, developing local supply chains, and achieving localized production to enhance competitiveness and risk resilience in multiple regional markets [1] - This strategy aims to ensure the steady and sustainable development of the company's international business [1]

Market Performance - The engineering machinery sector increased by 2.81% on September 17, with Wantong Hydraulic leading the gains [1] - The Shanghai Composite Index closed at 3876.34, up 0.37%, while the Shenzhen Component Index closed at 13215.46, up 1.16% [1] Individual Stock Performance - Wantong Hydraulic (code: 830839) closed at 45.91, up 12.41% with a trading volume of 50,300 shares and a turnover of 221 million yuan [1] - Changling Hydraulic (code: 605389) closed at 53.37, up 10.00% with a trading volume of 27,100 shares [1] - Hangcha Group (code: 603298) closed at 28.85, up 8.09% with a trading volume of 180,100 shares and a turnover of 506 million yuan [1] - Zhonglian Heavy Industry (code: 000157) closed at 7.71, up 4.76% with a trading volume of 2,696,700 shares and a turnover of 2.043 billion yuan [1] Capital Flow Analysis - The engineering machinery sector saw a net inflow of 197 million yuan from institutional investors, while retail investors experienced a net outflow of 75.92 million yuan [2] - The main stocks with significant net inflows included Zhonglian Heavy Industry with 202 million yuan and Zhejiang Dingli with 89.57 million yuan [3] Summary of Stock Movements - The overall performance of the engineering machinery sector indicates a positive trend, with several key players showing substantial gains in both stock price and trading volume [1][2] - The capital flow data suggests a strong interest from institutional investors, contrasting with the outflows from retail investors, indicating a potential shift in market sentiment [2][3]

Market Overview - On September 15, the engineering machinery sector rose by 0.7% compared to the previous trading day, with Changling Hydraulic leading the gains [1] - The Shanghai Composite Index closed at 3860.5, down 0.26%, while the Shenzhen Component Index closed at 13005.77, up 0.63% [1] Stock Performance - Key stocks in the engineering machinery sector showed varied performance, with notable gainers including: - Changling Hydraulic: Closed at 47.46, up 6.27% with a trading volume of 65,800 shares and a turnover of 310 million yuan [1] - Tuoshan Heavy Industry: Closed at 40.61, up 5.59% with a trading volume of 49,600 shares and a turnover of 197 million yuan [1] - Weiman Sealing: Closed at 38.86, up 5.43% with a trading volume of 128,500 shares and a turnover of 490 million yuan [1] - Conversely, some stocks experienced declines, such as: - Hengli Drill Tools: Closed at 43.37, down 2.76% with a trading volume of 22,600 shares and a turnover of 97.64 million yuan [2] - Fushite: Closed at 27.84, down 2.73% with a trading volume of 24,700 shares and a turnover of 70.44 million yuan [2] Capital Flow - The engineering machinery sector saw a net outflow of 205 million yuan from main funds, while retail investors contributed a net inflow of 266 million yuan [2][3] - Specific stock capital flows indicated: - Liugong: Main funds net inflow of 64.71 million yuan, with retail funds net outflow of 28.77 million yuan [3] - Hengli Hydraulic: Main funds net inflow of 64.11 million yuan, with retail funds net outflow of 28.22 million yuan [3] - Zhonglian Heavy Industry: Main funds net inflow of 58.49 million yuan, with retail funds net outflow of 14.21 million yuan [3]

Investment Rating - The report maintains a "Positive" investment rating for the mechanical equipment industry [6]. Core Insights - The mechanical equipment industry experienced a year-on-year revenue growth of 7.64% in Q2 2025, with a narrowing growth rate compared to the previous quarter. Key segments with accelerated revenue growth include wind power equipment, PCB(A), shipbuilding, lithium battery equipment, and instruments [13][18]. - The industry saw a year-on-year increase in net profit excluding non-recurring items of 16.22% in Q2 2025, with wind power and lithium battery equipment showing accelerated growth. The shipbuilding sector led with a 106% year-on-year increase, although this was affected by a low base [18][31]. - The overall profitability of the mechanical equipment industry strengthened in Q2 2025, with notable performance in the shipbuilding, railway equipment, and oil and gas equipment sectors [31]. Summary by Sections Overall Mechanical Equipment Overview - The mechanical equipment industry reported a year-on-year revenue growth of 7.64% in Q2 2025, with revenue growth accelerating in specific segments [13]. - The net profit excluding non-recurring items grew by 16.22% year-on-year, with wind power and lithium battery equipment leading the growth [18]. - The industry’s net profit margin increased by 0.38 percentage points year-on-year in Q2 2025, indicating improved profitability across various segments [25]. Subsector Performance - The engineering machinery sector saw a revenue increase of 8.7% in H1 2025, driven by strong overseas sales and diversified business contributions [44]. - Major companies in the engineering machinery sector, such as SANY Heavy Industry and XCMG, reported significant revenue growth, with SANY achieving a 15% increase year-on-year in H1 2025 [41][44]. - The overall net profit for the engineering machinery sector reached 161 billion yuan in H1 2025, reflecting a 25.1% year-on-year increase, with profit growth outpacing revenue growth [45].

Investment Rating - The industry investment rating is "Market Weight" [37] Core Viewpoints - The industry is experiencing a recovery trend, with both domestic and export sales of excavators and loaders showing positive year-on-year growth in August 2025 [3][4] - The domestic sales of excavators in August 2025 reached 7,685 units, a year-on-year increase of 14.80%, while the total excavator sales for January to August 2025 amounted to 154,181 units, reflecting a year-on-year growth of 17.20% [3] - Loader sales in August 2025 were 9,440 units, with a year-on-year increase of 13.34%, and cumulative sales for the first eight months of 2025 reached 83,209 units, up 12.86% year-on-year [4] - The demand for construction machinery is supported by stable infrastructure investment, ongoing replacement policies, and the issuance of special bonds, which totaled approximately 38,872 billion yuan from January to August 2025, marking a year-on-year increase of 20.94% [5] - The trend of exporting construction machinery is positive, with strong demand from Africa and improving sales in Southeast Asia and South America [5] Summary by Sections Excavator Sales - In August 2025, excavator sales were 16,523 units, with a year-on-year growth of 12.81% and a month-on-month decline of 3.59% [3] - Cumulative excavator sales from January to August 2025 were 154,181 units, reflecting a year-on-year increase of 17.20% [3] Loader Sales - Loader sales in August 2025 reached 9,440 units, showing a year-on-year increase of 13.34% and a month-on-month increase of 4.89% [4] - Cumulative loader sales for the first eight months of 2025 were 83,209 units, up 12.86% year-on-year [4] Industry Performance - The first half of 2025 saw revenue and net profit growth for major domestic construction machinery manufacturers, with revenue growth of 8.70% and net profit growth of 22.85% [6] - Major manufacturers such as Sany Heavy Industry and XCMG reported significant year-on-year increases in both revenue and net profit for the first half of 2025 [6] Investment Recommendations - The report suggests continued attention to industry leaders, specifically recommending Sany Heavy Industry, XCMG, Zoomlion, LiuGong, and Hengli Hydraulic [6]

Core Viewpoint - The company has received approval for the issuance of debt financing instruments, with a total limit of up to 2 billion RMB, which includes various types of bonds and securities [1] Group 1: Debt Financing Authorization - The company and its wholly-owned subsidiary, Zhongheng International Leasing, have been authorized to issue debt financing instruments with a maximum balance of 2 billion RMB [1] - The types of financing instruments include corporate bonds, medium-term notes, short-term financing bonds, and asset securitization products [1] - The authorization for issuing these debt instruments is valid for 36 months from the date of approval by the shareholders' meeting [1] Group 2: Asset-Backed Securities - Zhongheng International Leasing has received a no-objection letter from the Shanghai Stock Exchange regarding the listing of its asset-backed securities under the 3rd phase of its asset-backed special plan [1] - The total issuance amount for the non-renewable asset-backed securities is capped at 3 billion RMB, with the first issuance to be completed within 12 months from the date of the letter [1][2] - The validity of the no-objection letter is 24 months, during which Zhongheng International Leasing must complete the issuance according to the relevant documents submitted to the Shanghai Stock Exchange [1][3]