Dongguan Securities·2025-06-20 09:22Investment Rating - The mechanical equipment industry maintains a standard rating of "Hold" [1] Core Insights - The mechanical equipment sector experienced a bi-weekly decline of 2.66%, underperforming the CSI 300 index by 1.77 percentage points, ranking 17th among 31 sectors [1][12] - Year-to-date, the sector has increased by 4.84%, outperforming the CSI 300 index by 7.18 percentage points, ranking 6th among 31 sectors [1][12] - The specialized equipment sub-sector had the smallest decline of 1.85% in the bi-weekly performance, while the general equipment sub-sector saw the largest decline of 3.57% [1][18] Market Performance - The top three performing stocks in the mechanical equipment sector for the bi-weekly period were Jiao Da Tie Fa (234.28%), Shandong Molong (58.71%), and Xin Jin Power (56.96%) [2][19] - The bottom three performing stocks were Le Hui International (-20.67%), Xue Ren Shares (-18.99%), and Tai Er Shares (-17.33%) [2][20] Valuation Metrics - As of June 19, 2025, the sector's price-to-earnings (PE) ratio was 25.68 times, with sub-sectors showing varied PE ratios: General Equipment (32.24), Specialized Equipment (25.17), Rail Transit Equipment II (16.33), Engineering Machinery (18.99), and Automation Equipment (43.16) [2][21] Industry Trends - The upcoming 2025 Hangzhou International Humanoid Robot and Robotics Technology Exhibition is expected to showcase advanced technologies and stimulate market activity [3][70] - Companies like Nvidia and Samsung are increasing their investments in the robotics sector, which may accelerate industry growth [3][70] - The engineering machinery sector is projected to maintain growth in sales due to stable infrastructure investment and the acceleration of special bond issuance [3][70] Recommended Stocks - Recommended stocks include: - Huichuan Technology (300124) for its strong market share in general servo products and effective delivery strategies [71] - Greening Harmonic (688017) as a leading company in harmonic reducers benefiting from the push for smart manufacturing [71] - Sany Heavy Industry (600031) due to its leadership in excavators and expected demand growth from infrastructure projects [71]