SINOLINK SECURITIES·2025-08-24 11:52Investment Rating - The report suggests a positive outlook on the machinery equipment sector, particularly focusing on companies like LiuGong, SANY Heavy Industry, XCMG, Zoomlion, and Henglida Hydraulic [10][22]. Core Insights - The machinery equipment index increased by 2.75% in the last week, ranking 17th among 31 primary industry categories, while the Shanghai and Shenzhen 300 index rose by 4.18% [12]. - From January to July 2025, China's engineering machinery exports reached USD 33.49 billion, a year-on-year increase of 10.8%, indicating a strong recovery in overseas markets [22]. - China Railway Corporation's announcement of a significant increase in high-speed train procurement suggests a robust demand for railway equipment, with a total of 278 sets procured in 2025, exceeding the total for 2024 [15][23]. Summary by Sections 1. Stock Portfolio - Recommended stocks include LiuGong, SANY Heavy Industry, XCMG, Zoomlion, Henglida Hydraulic, and China CRRC [10]. 2. Market Review - The SW Machinery Equipment Index has risen by 29.11% year-to-date, ranking 5th among 31 primary industry categories [14]. 3. Core Insights Update - The engineering machinery sector is experiencing accelerated growth, with excavator sales in July 2025 reaching 17,138 units, a year-on-year increase of 25.2% [33]. - The railway equipment sector shows steady growth, supported by a 5.6% year-on-year increase in fixed asset investment [43]. 4. Key Data Tracking 4.1 General Machinery - The general machinery sector remains under pressure, with the manufacturing PMI at 49.3% in July, indicating contraction [24]. 4.2 Engineering Machinery - The engineering machinery sector is on an upward trend, with domestic excavator sales showing significant growth [33]. 4.3 Railway Equipment - The railway equipment sector is experiencing stable growth, with consistent investment in fixed assets [43]. 4.4 Shipbuilding - The shipbuilding sector is seeing a slowdown in price declines, with the global new ship price index stabilizing [47]. 4.5 Oil Service Equipment - The oil service equipment sector is stabilizing at the bottom, with a slight recovery in global rig counts [49]. 4.6 Industrial Gases - The industrial gases sector is expected to perform well in Q3 due to favorable pricing conditions [55]. 4.7 Gas Turbines - The gas turbine sector is showing robust growth, with significant increases in new orders [57].