Haitong Securities International·2025-05-16 11:10Investment Rating - The report suggests a positive outlook for the aerospace and defense sectors, particularly highlighting companies like Howmet Aerospace, Loar Holdings, Safran, and VSE for their growth potential in high-performance components and services [5]. Core Insights - The report indicates that technology giants are likely to increase capital expenditures for data centers due to tariff pressures and uncertainties, with Meta raising its AI data center capex forecast to between $64 billion and $72 billion for 2025 [2][18]. - The U.S. defense spending is projected to increase, with a significant arms sales agreement worth $142 billion reached between the U.S. and Saudi Arabia, which may impact regional military balances [3][37]. - The industrial robotics sector is expected to maintain a steady growth trajectory, with global installations projected to remain around 541,302 units in 2024, despite a slight decline in 2023 [39][45]. Summary by Sections Data Centers - Meta has adjusted its AI data center capital expenditure forecast upwards, attributing the increase to tariff impacts and supply chain adjustments [2][18]. Energy Construction - The U.S. government is expected to face legal challenges regarding the rollback of energy efficiency regulations, while Virginia has initiated a pilot for a utility-scale virtual power plant [22][23]. - GE Vernova announced a $14.2 billion energy agreement to support Saudi Arabia's power generation and grid stability [71]. Aerospace - The aerospace sector is witnessing a recovery, with companies like Howmet Aerospace and Safran positioned to benefit from increased demand for aerospace components and services [5][26]. - The price index for aircraft engines and components has shown stability, with a year-on-year increase of 2% [28][32]. Defense - The U.S. defense price index for government spending was stable in Q4 2024, reflecting a 2.1% year-on-year increase, indicating ongoing government investment in defense capabilities [38]. Robotics - The industrial robotics market is projected to see continued growth, with a significant share of installations coming from the automotive sector, which accounted for 25% of total installations in 2023 [39][45]. - The report highlights a robust demand for automation technologies driven by nearshoring trends and supportive policies like the Inflation Reduction Act [45]. Industrial Equipment - The gas turbine price index has increased by 7.24% year-on-year, driven by supply-demand dynamics and the growth of AI data centers [49][51]. - The report notes that the price index for electric transformers has remained stable, with slight year-on-year increases [56][58].