Jereh Group(SZ:002353) Soochow Securities·2025-12-07 03:30Investment Rating - The report maintains an "Overweight" rating for the machinery equipment industry, particularly emphasizing the resonance of domestic and foreign demand in engineering machinery [1]. Core Insights - The report highlights strong performance in the excavator market, with November 2025 sales reaching 20,027 units, a year-on-year increase of 13.9%, exceeding market expectations [1]. - The report anticipates a rebound in overseas demand for machinery in 2026, following a four-year decline, driven by a potential interest rate cut by the Federal Reserve [1]. - The gas turbine market is expected to benefit from the expansion of AI data centers in the U.S., which will increase demand for reliable power solutions [2]. - The semiconductor equipment sector is projected to see growth due to financing for storage expansion and increasing domestic equipment localization rates [3]. Summary by Sections Engineering Machinery - November 2025 excavator sales reached 20,027 units, with domestic sales at 9,842 units (up 9.11%) and exports at 10,185 units (up 18.8%) [1]. - The report notes that despite weak fundamentals in real estate and infrastructure, factors like machine replacement and water conservancy funding are supporting small excavators [1]. - The report identifies key companies in this sector, including Sany Heavy Industry, XCMG, and LiuGong, as potential beneficiaries of the expected demand rebound [1]. Gas Turbines - The expansion of AI data centers is driving significant electricity demand, with gas turbines being favored for their quick construction and stable output [2]. - Companies like Jereh and Haomai Technology are highlighted for their potential to benefit from this trend, with Jereh securing a $200 million order from a leading AI firm [2]. Semiconductor Equipment - The report emphasizes the importance of storage expansion financing and the increasing localization of equipment in the semiconductor sector [3]. - Key companies to watch include Northern Huachuang and Zhongwei Technology, which are expected to benefit from these trends [3].