Market Performance - On November 13, the Shandong state-owned enterprise reform sector rose by 1.17%, with Furi Shares leading the gains [1] - The Shanghai Composite Index closed at 4029.5, up 0.73%, while the Shenzhen Component Index closed at 13476.52, up 1.78% [1] Top Gainers in Shandong State-Owned Enterprises - Key stocks in the Shandong state-owned enterprise reform sector included: - Qirui Shares (002083) closed at 10.51, up 10.05% with a trading volume of 182,000 shares and a turnover of 191 million yuan [1] - Shida Shenghua (603026) closed at 91.38, up 10.00% with a trading volume of 72,400 shares and a turnover of 655 million yuan [1] - Jiga Development (600807) closed at 3.88, up 9.92% with a trading volume of 561,900 shares and a turnover of 216 million yuan [1] Market Capital Flow - The Shandong state-owned enterprise reform sector experienced a net outflow of 132 million yuan from institutional investors, while retail investors saw a net inflow of 138 million yuan [2] - The top stocks by net inflow from retail investors included: - Qirui Shares (002083) with a net inflow of 64.38 million yuan, accounting for 33.65% of its trading volume [3] - ST Chenming (000488) with a net inflow of 38.29 million yuan, accounting for 29.70% of its trading volume [3] Notable Decliners - Some stocks in the sector faced declines, including: - Shandong High-speed (600350) closed at 9.37, down 1.99% with a trading volume of 97,100 shares and a turnover of 9.13 million yuan [2] - Shandong High-tech (000803) closed at 8.50, down 2.52% with a trading volume of 1,180,500 shares and a turnover of 1.06 billion yuan [2]

Core Viewpoint - China Electric Power Construction Group Leasing Co., Ltd. and Shantui Construction Machinery Co., Ltd. signed a strategic cooperation agreement to integrate resources and promote high-quality development in the equipment manufacturing industry and national infrastructure construction [1] Group 1 - The strategic cooperation aims to create a new pattern of mutual benefit and collaborative development [1] - The partnership will leverage both companies' strengths to serve the national infrastructure initiatives [1] - The agreement is expected to set a demonstration and leading role in the equipment manufacturing sector [1]

Core Viewpoint - The stock of Shantui Construction Machinery Co., Ltd. has experienced fluctuations, with a recent decline of 2.13% on November 11, 2023, reflecting a total market capitalization of 15.887 billion yuan and a year-to-date increase of 10.60% [1] Financial Performance - For the period from January to September 2025, Shantui achieved operating revenue of 10.488 billion yuan, representing a year-on-year growth of 6.62%, and a net profit attributable to shareholders of 838 million yuan, which is a 24.36% increase compared to the previous year [2] Shareholder Information - As of September 30, 2025, the number of shareholders of Shantui increased by 19.80% to 70,800, while the average circulating shares per person decreased by 16.52% to 18,563 shares [2] - The company has distributed a total of 1.345 billion yuan in dividends since its A-share listing, with 526 million yuan distributed over the past three years [3] Stock Market Activity - On November 11, 2023, Shantui's stock price was reported at 10.59 yuan per share, with a trading volume of 1.23 billion yuan and a turnover rate of 0.88% [1] - The net outflow of main funds was 16.2184 million yuan, with significant selling pressure observed in large orders [1]

Investment Rating - The investment rating for the machinery equipment industry is "Recommended" (maintained) [2] Core Viewpoints - The sales of excavators in October 2025 reached 18,096 units, a year-on-year increase of 7.77%. Domestic sales were 8,468 units, up 2.44%, while exports were 9,628 units, up 12.9%. For the period from January to October 2025, a total of 192,135 excavators were sold, marking a 17% year-on-year increase [5] - The sales of loaders in October 2025 totaled 10,673 units, a year-on-year increase of 27.7%. Domestic sales were 5,372 units, up 33.2%, and exports were 5,301 units, up 22.6%. From January to October 2025, 104,412 loaders were sold, reflecting a 15.8% year-on-year increase [5] - The industry is experiencing a clear recovery, driven by a new round of concentrated replacement cycles and the commencement of large projects such as the Yaxi Water Conservancy Project. Domestic demand is expected to improve, while structural overseas demand continues to grow, particularly in countries along the "Belt and Road" initiative [5] - Leading companies are enhancing their global market share through "technology upgrades and globalization," indicating strong medium to long-term growth momentum [5] Summary by Sections Sales Data - In October 2025, excavator sales were 18,096 units, with domestic sales at 8,468 units and exports at 9,628 units. Year-to-date sales from January to October reached 192,135 units [5] - Loader sales in October 2025 were 10,673 units, with domestic sales at 5,372 units and exports at 5,301 units. Year-to-date sales from January to October totaled 104,412 units [5] Investment Recommendations - The report suggests focusing on leading listed companies with a well-established global presence, including XCMG Machinery (000425.SZ), Sany Heavy Industry (600031.SH), LiuGong (000528.SZ), Shantui (000680.SZ), Hengli Hydraulic (601100.SH), and Zhongji United (605305.SH) [5]

Core Insights - The engineering machinery sector experienced a slight increase of 0.05% on November 7, with Zhongji United leading the gains [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] Engineering Machinery Sector Performance - Zhongji United (605305) closed at 48.26, up 2.31% with a trading volume of 120,500 shares and a transaction value of 581 million [1] - Shantui (000680) closed at 11.30, up 1.99% with a trading volume of 291,100 shares and a transaction value of 327 million [1] - TuoShan Heavy Industry (001226) closed at 38.32, up 1.35% with a trading volume of 11,800 shares and a transaction value of approximately 44.99 million [1] - Hengli Hydraulic (601100) closed at 94.22, up 1.15% with a trading volume of 112,900 shares and a transaction value of 1.061 billion [1] - Liugong (000528) closed at 12.07, up 1.09% with a trading volume of 477,800 shares and a transaction value of 572 million [1] - Other notable performers include Tongli Co. (665GOZG) up 1.01%, Zhejiang Dingli (603338) up 0.93%, and Sany Heavy Industry (600031) up 0.64% [1] Fund Flow Analysis - The engineering machinery sector saw a net outflow of 207 million from main funds, while retail investors contributed a net inflow of 1.48 billion [2] - Speculative funds recorded a net inflow of approximately 58.98 million [2]

Core Viewpoint - Shantui's stock price has shown a year-to-date increase of 18.33%, with recent fluctuations indicating a slight decline over the past five trading days, while maintaining a positive trend over longer periods [2] Group 1: Stock Performance - As of November 7, Shantui's stock price rose by 2.26% to 11.33 CNY per share, with a trading volume of 1.78 billion CNY and a market capitalization of 16.997 billion CNY [1] - Year-to-date, Shantui's stock has increased by 18.33%, with a 2.07% decline over the last five trading days, a 10.00% increase over the last 20 days, and a 12.46% increase over the last 60 days [2] Group 2: Financial Performance - For the period from January to September 2025, Shantui reported a revenue of 10.488 billion CNY, reflecting a year-on-year growth of 6.62%, and a net profit attributable to shareholders of 838 million CNY, which is a 24.36% increase year-on-year [2] - The company has distributed a total of 1.345 billion CNY in dividends since its A-share listing, with 526 million CNY distributed over the past three years [3] Group 3: Shareholder Information - As of September 30, 2025, Shantui had 70,800 shareholders, an increase of 19.80% from the previous period, with an average of 18,563 circulating shares per shareholder, a decrease of 16.52% [2] - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 41.4627 million shares, having decreased its holdings by 12.0523 million shares compared to the previous period [3]

Core Viewpoint - Shantui Construction Machinery Co., Ltd. has shown stable revenue growth and significant profit increase in Q3 2025, alongside ongoing stock buyback and H-share issuance preparations [3][4][5]. Group 1: Q3 Performance - In Q3 2025, the company achieved a revenue of 10.488 billion yuan, a year-on-year increase of 2.36% [3] - The net profit attributable to shareholders was 838 million yuan, reflecting a year-on-year growth of 15.67% [3] - The net profit after deducting non-recurring gains and losses was 823 million yuan, with a year-on-year increase of 24.40% [3] - Basic earnings per share were 0.5595 yuan, up 15.84% year-on-year [3] Group 2: Stock Buyback Progress - As of October 31, 2025, the company has repurchased 10,762,650 shares, accounting for 0.72% of the total share capital [4] - The repurchase price ranged from 8.64 yuan to 9.74 yuan per share [4] - The company plans to continue the buyback based on market conditions and will fulfill information disclosure obligations [4] Group 3: H-Share Issuance Project - The company is progressing with its H-share issuance and listing on the Hong Kong Stock Exchange [5] - Key milestones include receiving approval from the controlling shareholder on August 14, 2025, and submitting the IPO application to the Hong Kong Stock Exchange on August 28, 2025 [5] - The company has responded to supplementary material requests from the China Securities Regulatory Commission and is preparing responses to inquiries from the Hong Kong Stock Exchange [5] Group 4: On-Site Visit - The research team conducted an on-site visit to the company's exhibition hall and main engine factory, gaining insights into the product matrix and application scenarios [6] - The visit provided a comprehensive understanding of the company's operational performance, capital operations, and strategic planning [6]

Group 1: Financial Performance - The company achieved operating revenue of 10.488 billion CNY in Q3 2025, a year-on-year increase of 2.36% [2] - The net profit attributable to shareholders reached 838 million CNY, reflecting a 15.67% growth compared to the previous year [2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 823 million CNY, up by 24.40% year-on-year [2] - Basic earnings per share stood at 0.5595 CNY, marking a 15.84% increase from the same period last year [2] Group 2: Share Buyback Progress - As of October 31, 2025, the company repurchased 10,762,650 shares, accounting for 0.72% of the total share capital [2] - The highest transaction price during the buyback was 9.74 CNY per share, while the lowest was 8.64 CNY per share [2] - The total amount spent on the buyback was approximately 99.99 million CNY (excluding transaction fees) [2] Group 3: H Share Issuance and Listing Progress - The company is advancing its global strategy by planning to issue H shares and list on the Hong Kong Stock Exchange [3] - The plan has been approved by the company's board and the third extraordinary general meeting of shareholders in 2025 [3] - The company submitted its application for the H share issuance to the Hong Kong Stock Exchange on August 28, 2025 [3] - The application materials were published on the Hong Kong Stock Exchange website on the same day [3] - The company received a request for supplementary materials from the China Securities Regulatory Commission (CSRC) on September 30, 2025, and has since responded [3] Group 4: On-Site Visit - The on-site visit included a tour of the company showroom and the main manufacturing facility to understand the products and their application scenarios [3]

Group 1: Chemical Sector Insights - The chemical sector reported a slight increase in profitability in the first three quarters of 2025, with overall revenue up by 2.6% year-on-year and net profit up by 9.4% [6][7] - Notable profit growth was observed in sub-sectors such as pesticides (201%), fluorochemicals (124.6%), adhesives and tapes (91.7%), and potassium fertilizers (62.2%), while significant declines were seen in organic silicon (-73.0%), soda ash (-68.7%), nylon (-52.3%), and titanium dioxide (-46.3%) [6][7] - The report suggests a long-term optimistic outlook for the chemical sector due to supply-side improvements and low inventory levels, while short-term caution is advised due to falling oil prices and potential price declines in chemical products [6] Group 2: Qingdao Beer Company Analysis - Qingdao Beer Company reported a revenue of 29.367 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 1.41%, with a net profit of 5.274 billion yuan, up by 5.70% [11][12] - The company experienced a slight decline in Q3 revenue, attributed to a generally weak market demand, with a total sales volume of 6.894 million kiloliters, up by 1.61% year-on-year [12][13] - The company is expected to achieve stable growth for the full year, supported by product structure upgrades and cost reductions, with a projected net profit of 4.653 billion yuan for 2025 [14] Group 3: Zhejiang Dingli Company Overview - Zhejiang Dingli reported a revenue of 6.675 billion yuan for the first three quarters of 2025, an increase of 8.82% year-on-year, with a net profit of 1.595 billion yuan, up by 9.18% [16][17] - The company faced challenges in export sales, with a 13.7% decline in high-altitude work platform exports, which accounted for 61.21% of total sales [19] - The company is focusing on R&D and innovation to maintain its competitive edge, launching new products and exploring electric and digital technologies [18] Group 4: Kaili Medical Company Insights - Kaili Medical achieved a revenue of 1.459 billion yuan in the first three quarters of 2025, a year-on-year increase of 4.37%, but reported a net profit decline of 69.25% [21][22] - The company’s Q3 revenue was 495 million yuan, reflecting a significant year-on-year increase of 28.41%, driven by a recovery in hospital procurement [22][23] - Despite the revenue growth, the company faced pressure on profit margins due to increased costs and competitive pricing in the medical device sector [23] Group 5: Zhuosheng Microelectronics Performance - Zhuosheng Microelectronics reported a revenue of 2.769 billion yuan for the first three quarters of 2025, a decrease of 17.77% year-on-year, with a net loss of 171 million yuan [26][27] - The company’s Q3 revenue showed a slight year-on-year decline of 1.62%, but a quarter-on-quarter increase of 12.36%, indicating a potential recovery trend [28] - The company is focusing on improving production capacity and product mix, particularly in high-end RF modules, to enhance profitability in the upcoming quarters [28][29] Group 6: Non-Bank Financial Sector Performance - The non-bank financial sector saw a 0.5% decline in the index, with significant growth in net profits for listed brokerages, which increased by 62% year-on-year in the first three quarters of 2025 [32][33] - The financial market is expected to remain active, driven by improved brokerage revenues from trading and margin financing activities [33] - Regulatory developments are anticipated to enhance investor protection and market stability, which could positively impact the sector's performance [33] Group 7: North American Cloud Providers and AI Chip Market - North American cloud providers reported a 75% year-on-year increase in capital expenditures in Q3 2025, focusing heavily on AI infrastructure [36][37] - Qualcomm announced its entry into the AI chip market with the launch of AI200 and AI250 chips, aiming to compete with Nvidia in the high-end AI data center segment [38] - The overall electronic industry is experiencing a recovery in demand, with rising prices for storage chips and increased domestic production efforts [36][39] Group 8: Rongchang Bio's Financial Performance - Rongchang Bio achieved a revenue of 1.720 billion yuan in the first three quarters of 2025, a year-on-year increase of 42.27%, while net losses narrowed by 48.60% [41] - The company reported a Q3 revenue of 622 million yuan, reflecting a 33.13% increase year-on-year, indicating strong commercial performance [41] - The improvement in financial performance is attributed to the successful commercialization of core products and effective cost management strategies [41]

Core Viewpoint - The stock of Shantui Construction Machinery Co., Ltd. has experienced fluctuations, with a recent decline of 2.07% and a year-to-date increase of 13.42% [1] Financial Performance - For the period from January to September 2025, Shantui achieved a revenue of 10.488 billion yuan, representing a year-on-year growth of 6.62%, and a net profit attributable to shareholders of 838 million yuan, which is a 24.36% increase compared to the previous year [2] - Cumulative cash dividends since the A-share listing amount to 1.345 billion yuan, with 526 million yuan distributed over the last three years [3] Shareholder Information - As of September 30, 2025, the number of shareholders for Shantui reached 70,800, an increase of 19.80% from the previous period, while the average circulating shares per person decreased by 16.52% to 18,563 shares [2] - The third-largest circulating shareholder is Hong Kong Central Clearing Limited, holding 41.4627 million shares, which is a decrease of 12.0523 million shares from the previous period [3] Market Activity - As of November 4, 2025, Shantui's stock price was 10.86 yuan per share, with a trading volume of 297 million yuan and a turnover rate of 2.04%, resulting in a total market capitalization of 16.292 billion yuan [1] - The net outflow of main funds was 8.3748 million yuan, with significant buying and selling activity observed in large orders [1]