Xiangcai Securities·2025-08-10 13:35Investment Rating - The report maintains a "Buy" rating for the machinery industry [2] Core Insights - In July, excavator sales exceeded expectations, with total sales reaching 17,138 units, a year-on-year increase of 25.2%. Domestic sales were 7,306 units, up 17.2%, while exports reached 9,832 units, marking a 31.9% increase [4] - The report highlights that the domestic market is expected to continue growing driven by replacement demand, while exports are anticipated to accelerate due to low base effects and improving overseas demand [4][6] - The semiconductor equipment sector is also noted for its growth, with global semiconductor sales reaching $59.91 billion in June, a year-on-year increase of 19.6% [5] Summary by Sections Market Performance - Over the past month, the machinery sector has outperformed the CSI 300 index, with a relative return of 8.2% and an absolute return of 11.0% [3] - The machinery industry has seen a cumulative increase of 21.7% year-to-date, with the printing and packaging machinery sector leading with a 55.7% increase [8] Investment Recommendations - The report suggests focusing on the engineering machinery sector, which is expected to benefit from domestic demand recovery and rapid export growth. Key companies to watch include Anhui Heli, Hangcha Group, LiuGong, SANY Heavy Industry, XCMG, Zoomlion, and Hengli Hydraulic [6] - The semiconductor equipment sector is also highlighted as a beneficiary of ongoing global demand growth and domestic substitution [6] Key Company Performance - Notable companies with significant stock performance include Guoji Precision (46.4%), Hongtian Co. (34.0%), and Riyue Ming (32.2%) for the past week, while Hengli Drilling Tools has seen a year-to-date increase of 294.0% [14][16]