机床刀具行业：需求见底，重视刀具公司弹性

Investment Rating - The industry investment rating is "Buy" [3] Core Viewpoints - The report highlights that demand has bottomed out, driven by government policies aimed at stimulating domestic demand. Recent policies include incentives for appliance and automotive upgrades, leading to a recovery in production figures, such as a 4.8% year-on-year increase in automotive output in October, reversing a previous decline of 1.0% in September [3] - The report notes significant growth in humidity control devices and room air conditioners, with respective growth rates of 32.1% and 14.0%. The major downstream industries for machine tools and cutting tools are performing well, with signs of recovery in smartphone shipments, which saw a year-on-year increase of 4% in Q3 2024, marking five consecutive quarters of positive growth [3] - Domestic leading cutting tool companies are expanding their overseas presence, with notable revenue growth from exports. For instance, Huari Precision achieved overseas revenue of 23.05 million CNY in the first half of 2024, a year-on-year increase of 43.11%, while Okoyi's overseas sales revenue reached 11.5 million CNY, up 94.67% [3] - The report emphasizes the trend towards product high-endization and customer large-scale customization, with a significant portion of the market still dominated by mid-to-low-end products. The average export price of CNC cutting tools from Okoyi was 11.83 CNY per piece, indicating a shift towards higher-end products [3] - The leading companies in the industry are expected to perform well in terms of profit growth, as they have maintained stable revenue growth even during industry downturns. The report anticipates better profit performance for these companies in the future [3] Summary by Sections - Investment Recommendations: The report recommends investing in leading domestic CNC cutting tool companies such as Huari Precision, while also suggesting to pay attention to Okoyi, Zhongtung High-tech, and Newray [3] - Market Performance: The report indicates that the industry is currently facing opportunities for growth due to manufacturing upgrades and import substitution [3]