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].

Core Viewpoint - The company, Fushite, has established partnerships with major mining enterprises such as Zijin Mining and China General Nuclear Power Group, and is expanding its overseas operations in countries like Suriname, Mongolia, Serbia, and Namibia, which will contribute to its future growth [1] Group 1 - The company has been collaborating with large mining companies since the end of 2024 [1] - Overseas subsidiaries have been set up in Suriname, Mongolia, Serbia, and Namibia to conduct mining maintenance services [1] - The overseas business is expected to reflect in the company's performance in 2024 and 2025, with ongoing expansion in the overseas market [1] Group 2 - The scale of the overseas business is projected to gradually increase and is identified as one of the main growth points for the company in the future [1]

Group 1: Company Overview - Jiangxi Fushite Hydraulic Co., Ltd. specializes in the research, production, and sales of hydraulic pipeline systems, with key products including hard pipe assemblies, soft pipe assemblies, fire extinguishing systems, pipe joints, and oil tanks [3][4] - The hydraulic pipeline is essential for various machinery manufacturing industries, including construction machinery, mining machinery, port machinery, agricultural machinery, logistics, metallurgy, and wind power equipment [3][4] - The company has established a strong customer base, including leading enterprises such as SANY, Zoomlion, Jiangxi Copper, State Power Investment Corporation, and Schwing [3][4] Group 2: Market Segmentation - The company's product applications are divided into two main categories: the front-mounted market and the post-mining maintenance market [3][4] - The front-mounted market has seen growth due to the recovery of the construction machinery market and accelerated overseas exports [4][5] - The post-mining maintenance market is expected to expand significantly as the company has a first-mover advantage and a stable service network established in major domestic mines [4][7] Group 3: Future Development Plans - The company aims to focus on two major markets: the front-mounted market and the post-mining maintenance market, with plans to explore new fields such as semiconductor equipment pipelines and liquid cooling [5][6] - International mining markets are a key focus, with ongoing efforts to expand overseas service points in countries like Suriname, Serbia, Mongolia, and Namibia [4][5][10] - The company is transitioning from pipeline system maintenance to comprehensive lifecycle monitoring and management of mining equipment [5][6] Group 4: Competitive Advantages - The company has over 20 years of experience in the post-mining maintenance market, establishing stable partnerships with major clients [7] - Continuous growth in fixed asset investment in the mining industry is driving demand for maintenance and repair services [7] - The company has built a high-quality technical team that supports its maintenance services, enhancing its reputation and customer relationships [7] Group 5: Strategic Collaborations - The strategic cooperation with Jiangxi Copper focuses on equipment maintenance, lifecycle monitoring, and overseas market expansion [8] - The company has partnered with large mining enterprises like Zijin Mining and China General Nuclear Power Corporation to enhance its international business [10] Group 6: Financial and Operational Insights - The revenue from the front-mounted market currently exceeds that of the post-mining maintenance market, but the latter is expected to grow as overseas markets expand [6] - The company has begun production in its high-strength welded pipe segment, with capacity gradually being released and revenue generation underway [10] - Increased management expenses are attributed to intensified market development efforts and personnel expansion [10]

Core Viewpoint - The A-share market saw a significant rally in the engineering machinery sector on February 3, with multiple stocks experiencing substantial gains, indicating a positive trend in this industry [1]. Group 1: Stock Performance - Jiangshun Technology (江顺科技) reached the daily limit with a 10% increase, bringing its total market value to 66.33 billion [2]. - Construction Machinery (建设机械) and Sikan Technology (思看科技) both rose by over 8%, with Sikan Technology's market value at 137 billion [2]. - Huadian Technology (华电科工) increased by over 7%, with a market value of 134 billion [2]. - Anhui Heli (安徽合力) and Zoomlion Heavy Industry (中联重科) both saw gains exceeding 6%, with market values of 198 billion and 797 billion respectively [2]. - Sany Heavy Industry (三一重工) rose by 6.03%, with a market value of 2085 billion [2]. - Other notable performers included Shantui (山推股份) and Hengli Hydraulic (恒立液压), both increasing by over 5% [2]. Group 2: Year-to-Date Performance - Jiangshun Technology has a year-to-date increase of 42.17% [2]. - Sikan Technology shows a remarkable year-to-date increase of 65.88% [2]. - Huadian Technology has a year-to-date increase of 46.56% [2]. - Anhui Heli's year-to-date increase stands at 6.41% [2]. - Zoomlion Heavy Industry has a year-to-date increase of 9.40% [2]. - Sany Heavy Industry's year-to-date increase is 7.29% [2].

Core Viewpoint - The A-share market saw a collective surge in engineering machinery stocks, with several companies experiencing significant price increases, indicating a positive trend in the sector [1]. Group 1: Stock Performance - Jiangshun Technology reached the daily limit with a 10% increase, marking a year-to-date rise of 42.17% [2]. - Construction Machinery and Sika Technology both rose by over 8%, with Sika Technology showing a year-to-date increase of 65.88% [2]. - Huadian Engineering increased by over 7%, with a year-to-date rise of 46.56% [2]. - Anhui Heli and Zoomlion both saw increases of over 6%, with Anhui Heli's year-to-date rise at 6.41% and Zoomlion at 9.40% [2]. - Sany Heavy Industry rose by 6.03%, with a year-to-date increase of 7.29% [2]. - Other notable performers included Shantui, Hengli Hydraulic, and Fushite, all rising over 5% [1][2]. Group 2: Market Capitalization - Jiangshun Technology has a total market capitalization of 66.33 billion [2]. - Construction Machinery's market cap stands at 56.44 billion [2]. - Sika Technology has a market cap of 137 billion [2]. - Huadian Engineering's market cap is 134 billion [2]. - Anhui Heli has a market cap of 198 billion, while Zoomlion's is 797 billion [2]. - Sany Heavy Industry has a market cap of 208.5 billion [2]. - Shantui's market cap is 186 billion, and Hengli Hydraulic's is 152.7 billion [2]. - Fushite has a market cap of 47.63 billion, while Tietuo Machinery's is 2.618 billion [2]. - Xugong Machinery has a market cap of 130.5 billion [2].

Market Overview - The engineering machinery sector experienced a decline of 2.26% on February 2, with Zhigao Machinery leading the drop [1] - The Shanghai Composite Index closed at 4015.75, down 2.48%, while the Shenzhen Component Index closed at 13824.35, down 2.69% [1] Individual Stock Performance - Zhigao Machinery (code: 920101) saw a significant drop of 9.01%, closing at 42.33 with a trading volume of 31,200 shares and a transaction value of 136 million [2] - Other notable declines included Fushite (code: 301446) down 7.31% and Tietuo Machinery (code: 920706) down 7.08% [2] - Conversely, Construction Machinery (code: 600984) increased by 3.52%, closing at 4.12 with a transaction value of 275 million [1] Capital Flow Analysis - The engineering machinery sector experienced a net outflow of 261 million from institutional investors, while retail investors saw a net outflow of 68.44 million [2] - Notably, speculative funds had a net inflow of 329 million [2] Detailed Capital Flow for Selected Stocks - Zhongji United (code: 605305) had a net outflow of 33.05 million from institutional investors, while speculative funds saw a net inflow of 17.02 million [3] - Iron Construction Machinery (code: 688425) reported a net inflow of 12.55 million from institutional investors and 21.61 million from speculative funds [3] - Other stocks like Longling Hydraulic (code: 605389) and Tuoshan Heavy Industry (code: 001226) also showed varying net inflows and outflows across different investor categories [3]

Core Viewpoint - Recent increases in metal prices have drawn attention to companies in the upstream and downstream of the industry chain, with Jiangxi Fushite Hydraulic Co., Ltd. (Fushite) planning to upgrade its services from pipeline system maintenance to comprehensive lifecycle monitoring and systematic maintenance management for mining equipment [1][3]. Group 1: Company Overview - Fushite specializes in the research, production, and sales of hydraulic pipeline systems, with key products including hard pipe assemblies, soft pipe assemblies, vehicle fire extinguishing systems, pipe joints, and oil tanks [1]. - The hydraulic pipeline system is crucial for hydraulic systems, accounting for approximately 15% of the value of hydraulic systems, and is widely used across various machinery manufacturing sectors, including construction, mining, port, agricultural, logistics, metallurgy, and wind power equipment [1][2]. Group 2: Market Trends - The engineering machinery market remains a significant portion of Fushite's main business, benefiting from domestic investment, product upgrades, and the acceleration of engineering machinery exports [2]. - Fushite is actively expanding into the mining aftermarket as a new profit growth point, having signed a strategic cooperation agreement with Jiangxi Copper Group to enhance collaboration in equipment maintenance and management [3]. Group 3: Future Strategies - The company aims to evolve into a professional manager for mining equipment, focusing on lifecycle monitoring and systematic maintenance services, while also exploring overseas market opportunities [3]. - Fushite plans to continue its efforts in the engineering machinery sector and expand into non-engineering machinery markets such as metallurgy and shipping, as well as new fields like semiconductor equipment pipelines and liquid cooling [3].

Group 1: Company Overview - The company specializes in the research, production, and sales of hydraulic pipeline systems, with key products including hard pipe assemblies, soft pipe assemblies, fire extinguishing systems, pipe joints, and oil tanks [3][4]. - Hydraulic pipelines are essential components in various machinery manufacturing sectors, including construction, mining, port machinery, agricultural machinery, logistics, metallurgy, and wind power equipment [3][4]. - The company has established a strong customer base, including leading enterprises such as SANY, Zoomlion, Jiangxi Copper, State Power, and Schwing [3][4]. Group 2: Market Segmentation - The company's product applications are divided into two main markets: the front-mounted market and the post-repair market [3][4]. - The front-mounted market includes clients like SANY and Zoomlion, benefiting from the recovery of the construction machinery market and accelerated overseas exports [4][5]. - The post-repair market has a competitive advantage due to the company's 20+ years of experience and established relationships with major mining companies [6][7]. Group 3: Future Development Plans - The company aims to focus on two primary markets: the front-mounted market and the post-repair market, with plans to explore semiconductor equipment pipelines and liquid cooling systems [5][6]. - The international mining market is a key area for future growth, with the company expanding its overseas service points in countries like Suriname, Serbia, Mongolia, and Namibia [4][5][9]. - The company is transitioning from pipeline maintenance to comprehensive lifecycle monitoring and systematic maintenance management for mining equipment [5][9]. Group 4: Strategic Partnerships and Collaborations - The company has a long-term partnership with Jiangxi Copper, focusing on equipment maintenance, lifecycle monitoring, and overseas market expansion [8][9]. - Collaborations with major mining enterprises such as Zijin Mining and China General Nuclear Power Corporation have been established to enhance international business operations [9]. Group 5: Technological Advancements - The company has developed products for AI liquid cooling applications, leveraging its existing pipeline technology to meet the growing demand in data center construction [9]. - The emphasis on professional maintenance and efficiency in mining equipment is expected to enhance the company's competitive edge in the post-repair market [9].

Market Overview - The engineering machinery sector experienced a decline of 0.78% on January 30, with Anhui Heli leading the drop [1] - The Shanghai Composite Index closed at 4117.95, down 0.96%, while the Shenzhen Component Index closed at 14205.89, down 0.66% [1] Stock Performance - Notable gainers in the engineering machinery sector included: - Changling Hydraulic (688389) with a closing price of 81.84, up 6.29% on a trading volume of 22,300 shares and a turnover of 178 million [1] - Tuoshan Machinery (001226) closed at 51.83, up 6.25% with a trading volume of 25,300 shares and a turnover of 129 million [1] - Major decliners included: - Anhui Heli (600761) closed at 21.82, down 6.19% with a trading volume of 535,100 shares and a turnover of 1.161 billion [2] - Fushite (301446) closed at 46.81, down 5.43% with a trading volume of 30,800 shares and a turnover of 14.5 million [2] Capital Flow - The engineering machinery sector saw a net outflow of 212 million from institutional investors, while retail investors contributed a net inflow of 160 million [2] - The capital flow for specific stocks showed: - LiuGong (000528) had a net inflow of 49.67 million from institutional investors, while retail investors had a net outflow of 24.11 million [3] - XCMG Machinery (000425) recorded a net inflow of 34.38 million from institutional investors, with retail investors also experiencing a net outflow of 15.04 million [3]

Market Overview - The engineering machinery sector experienced a decline of 1.11% on January 28, with Huadong Heavy Machinery leading the drop [1] - The Shanghai Composite Index closed at 4151.24, up 0.27%, while the Shenzhen Component Index closed at 14342.9, up 0.09% [1] Stock Performance - Notable gainers in the engineering machinery sector included: - Fushite (301446) with a closing price of 49.89, up 8.22% on a trading volume of 50,300 shares and a turnover of 249 million yuan [1] - Zhigao Machinery (920101) closed at 47.50, up 5.30% with a trading volume of 78,000 shares and a turnover of 367 million yuan [1] - Anhui Heli (600761) closed at 23.60, up 2.97% with a trading volume of 471,100 shares and a turnover of 1.101 billion yuan [1] - Major decliners included: - Huadong Heavy Machinery (002685) closed at 6.92, down 4.16% with a trading volume of 595,600 shares and a turnover of 416 million yuan [2] - Southern Road Machinery (603280) closed at 65.66, down 3.16% with a trading volume of 27,400 shares and a turnover of 109 million yuan [2] - Sany Heavy Industry (600031) closed at 22.25, down 2.54% with a trading volume of 1,092,600 shares and a turnover of 2.447 billion yuan [2] Capital Flow - The engineering machinery sector saw a net outflow of 321 million yuan from institutional investors and 224 million yuan from retail investors, while retail investors had a net inflow of 545 million yuan [2] - Key stocks with significant capital flow included: - Anhui Heli (600761) had a net inflow of 97.05 million yuan from institutional investors, while retail investors saw a net outflow of 38.57 million yuan [3] - Zhigao Machinery (920101) had a net inflow of 40.73 million yuan from institutional investors, with a minor net inflow from retail investors [3] - Sany Heavy Industry (600031) experienced a net outflow of 148.70 million yuan from institutional investors [3]