Summary of Conference Call Records Industry Overview - The mechanical industry is experiencing good year-on-year growth in 2025, with strong guidance in the metal cutting machine and injection molding machine markets. Injection molding machine orders are increasing month by month, with Haitian International achieving a 30% year-on-year growth in June, and expected to maintain good growth in July. Southeast Asia and South Asia are showing significant growth [1][2] Key Insights and Arguments - The acceleration of overseas factory establishment is driven by global reciprocal tariffs and the need for supply chain diversification. There is a noticeable demand from U.S. supermarkets, with increased tax differentials, labor cost advantages, and the need for local employee training boosting light industry consumption and manufacturing equipment demand [1][4] - The overseas market for engineering machinery is segmented into developed countries, resource-driven regions, and emerging markets. In Q2, excavator exports increased by over 20% year-on-year, with significant order increases in emerging markets like Indonesia, and stable trends in the Middle East, Africa, and Eastern Europe, linked to local manufacturing and new energy industries [1][5] Investment Directions - The investment direction for the mechanical industry in 2025 follows an overseas expansion theme, focusing on three areas: companies benefiting from capital expenditures in computing power chains (e.g., Yingliu, Maimi, Binglun), oil and gas sector growth (e.g., Jerry, Fosda, Nuwei), and niche products like high-pressure cleaners and small generator sets [1][6] Product Performance - Key products performing well in the current overseas market include metal cutting machines, injection molding machines, industrial robots, and lasers. Injection molding machine orders are showing a significant upward trend, with a 30% year-on-year growth in June. Excavators are also in high demand in emerging markets like Indonesia, the Middle East, and Africa, with notable order increases since the second half of 2024 [1][7] Impact of Overseas Market Layout - The layout of overseas markets has a positive impact on Chinese companies with strong global competitiveness. These companies benefit from optimizing overseas channels and competitive landscapes, particularly in the injection molding and forklift sectors. The engineering machinery sector is also influenced by overseas factory establishment and rising local wages, driving overall capital expenditures [1][8] U.S.-China Tariff Context - In the context of U.S.-China tariffs, some companies have seen their competitive strength improve, with Juxing being a notable example. As of May this year, the U.S. overall tax rate was approximately 8%, which is a 5 percentage point increase from normal levels. However, the impact of tariffs on rigid consumer goods demand remains minimal [1][9] U.S. Real Estate Market Policies - U.S. real estate market policies, including potential interest rate cuts and capital gains tax reductions, positively affect the transaction volume of second-hand houses, thereby boosting related industries. This policy expectation benefits various products, including those from companies like Quanfang and Lvtian. Additionally, new U.S.-China negotiations may lead to tariff reductions, providing significant elasticity for the mechanical industry [1][11] Macroeconomic Data Influence - Current macroeconomic data, including customs data and other macro and mid-level data, reflect terminal prosperity and provide comprehensive information for investors. Interested investors can communicate with the team for further detailed data interpretation and specialized reports [1][12]