Dongguan Securities·2025-08-29 09:24Investment Rating - The mechanical equipment industry maintains a standard rating of "Neutral" [1] Core Views - The development of electrification in construction machinery and robotics technology is a key focus area [1][4] - The industry is expected to see a significant increase in demand due to the implementation of major domestic projects, which will support long-term demand and potentially accelerate the upward cycle [4][72] - The robotics sector is experiencing growth driven by new product launches and significant orders, with a focus on humanoid robots and the integration of 3D printing technology for lightweight components [3][71] Market Performance - As of August 28, 2025, the mechanical equipment sector has seen a bi-weekly increase of 5.77%, underperforming the CSI 300 index by 1.19 percentage points [5][15] - The sector has increased by 12.87% month-to-date and 30.36% year-to-date, outperforming the CSI 300 index by 3.35 and 16.92 percentage points respectively [5][15] - The automation equipment sub-sector showed the highest bi-weekly increase of 9.83%, while the engineering machinery sub-sector increased by 2.90% [21][19] Stock Performance - The top three performing stocks in the mechanical equipment sector as of August 28, 2025, are Balanshi (205.13%), Zhejiang Haideman (67.43%), and Qiangrui Technology (57.94%) [20][22] - The worst-performing stocks include Southern Road Machinery (-23.87%), Suda Co., Ltd. (-22.42%), and Shanhe Intelligent (-22.29%) [23][22] Valuation Metrics - The current price-to-earnings (PE) ratio for the mechanical equipment sector is 30.81 times, with sub-sectors showing varying valuations [25] - The automation equipment sub-sector has the highest PE ratio at 50.58 times, while the engineering machinery sub-sector stands at 22.02 times [25][6] Recommended Stocks - Recommended stocks include Huichuan Technology (300124), Greening Harmonic (688017), Sany Heavy Industry (600031), and Hengli Hydraulic (601100) due to their strong market positions and growth potential [73][72]