机械设备行业周报：10月PMI边际好转，重视顺周期组合

Investment Rating - The industry rating is "Buy" [4] Core Viewpoints - The mechanical industry index decreased by 0.91% last week, while the Shanghai Composite Index fell by 1.68% and the ChiNext Index dropped by 5.14% [1] - The manufacturing Purchasing Managers' Index (PMI) for October is 50.1%, up 0.3 percentage points from the previous month, indicating a recovery in manufacturing sentiment after five consecutive months below 50 [1][19] - The revenue momentum in the engineering machinery sector has emerged, with the top five manufacturers reporting a total revenue of 58.4 billion yuan in Q3 2024, a year-on-year increase of 3%, and a net profit of 4.3 billion yuan, up 39% year-on-year [1][23] Summary by Sections Macroeconomic Data Tracking - The PMI for October indicates a manufacturing recovery, with large and medium enterprises showing improvements, while small enterprises saw a decline [19] - The production index is at 52.0%, indicating accelerated production activities, while the new orders index is at 50.0%, suggesting stable demand [19] Midstream Data Tracking - In Q3 2024, the top five engineering machinery manufacturers showed varied revenue growth, with companies heavily involved in earthmoving machinery like SANY and LiuGong experiencing over 10% revenue growth [23] - Caterpillar's revenue decreased by 4% year-on-year, highlighting the contrasting performance between domestic companies and global leaders [23][24] Investment Strategy - The report suggests focusing on three main investment lines for the second half of 2024: waiting for cyclical recovery in engineering machinery, favorable supply dynamics in the sector, and growth-oriented assets in the 3C industry and semiconductor equipment [3][2] - Recommended stocks include SANY Heavy Industry, XCMG, and LiuGong for engineering machinery, and companies like Huichuan Technology and Anhui Heli for automation [3][2]