机械设备行业行业周报：10月PMI重回扩张区间，三季报业绩承压

Investment Rating - The report maintains a "Recommended" rating for the mechanical equipment industry [1]. Core Insights - The mechanical equipment index decreased by 0.05% last week, while the Shanghai Composite Index fell by 1.68% and the ChiNext Index dropped by 5.14%. The mechanical equipment sector ranked 15th among all 31 industries in terms of performance [1][10]. - The manufacturing PMI for October returned to the expansion zone at 50.1%, driven by domestic demand, although external demand showed a decline with the new export orders index at 47.3% [1]. - The third-quarter performance of listed companies in the mechanical industry continued to be under pressure, with a year-on-year decline in net profit of 3.30% [1]. - Investment opportunities are suggested for 2024, focusing on large-scale equipment updates, overseas expansion of equipment, AI applications, and new technology penetration [1]. Summary by Sections Market Review - The mechanical equipment index fell by 0.05%, with the overall valuation level at 29.4 times [1][10]. - The top-performing segments last week included engineering machinery, instruments, and rail transit equipment [1][8]. PMI and Economic Indicators - The October manufacturing PMI index increased by 0.3 percentage points from the previous month, marking the first return above the threshold since April [1]. - The production index rose to 52%, indicating a demand-driven increase, while the new orders index slightly improved to 50% [1]. Third Quarter Performance - In the first three quarters of 2024, 689 listed companies in the mechanical industry achieved a total operating income of 1,769.4 billion yuan, a year-on-year increase of 5.01% [1]. - The net profit for the same period was 120.6 billion yuan, reflecting a year-on-year decrease of 3.30% [1]. Investment Recommendations - The report suggests focusing on investment opportunities arising from large-scale equipment updates, including railway equipment, machine tools, and engineering machinery [1]. - Other areas of interest include the overseas expansion of equipment and the application of AI in automation [1].