Market Performance - The Hang Seng Index (HSI) closed at 26,434, up 1.0% for the day and 31.8% year-to-date[1] - The HSCEI increased by 1.1% to 9,467, with a year-to-date gain of 29.9%[1] - The MSCI China index rose 1.7% to 89, reflecting a year-to-date increase of 37.7%[1] Commodity Prices - Brent Crude oil price decreased by 0.3% to US$66 per barrel, down 8.5% year-to-date[1] - Gold prices fell by 3.2% to US$3,982 per ounce, but are up 51.7% year-to-date[1] - Copper prices increased by 1.0% to US$10,963 per ton, with a year-to-date rise of 25.0%[1] Economic Indicators - China's industrial profits grew by 21.6% year-on-year in September 2025, up from 20.4% in August 2025[4] - Sales revenue for industrial enterprises in China increased by 2.7% in September, compared to 1.9% in August[4] - The US GDP growth rate for Q3 2025 was reported at 3.8%, exceeding the consensus of 3.0%[2]

Investment Rating - The report maintains a "Buy" rating for the machinery industry [1] Core Views - In August, China's industrial profits saw a significant year-on-year increase of 20.4%, driven by macro policies and the recovery of equipment manufacturing [3] - The photovoltaic equipment sector experienced a decline in new installations in August, with a total of approximately 7.4GW added, down 55.3% year-on-year, but cumulative installations for the first eight months still grew by 64.7% [4] - The manufacturing PMI rose by 0.1 percentage points to 49.4 in August, indicating a slight improvement in manufacturing supply and demand [5] Summary by Sections Market Performance - Over the past 12 months, the machinery industry has outperformed the CSI 300 index, with a relative return of 35.4% [2] Key Company Performance - Notable companies in the machinery sector include Changchuan Technology, which saw a weekly increase of 49.4%, and Hongsheng Co., which increased by 35.4% [13][16] Investment Recommendations - The report suggests focusing on the general automation sector, such as Haomai Technology, and the photovoltaic processing equipment sector, including Jing Sheng Machinery and Aotwei, as they are expected to benefit from the recovery in manufacturing [5]