Investment Rating - The report maintains a "Strong Buy" rating for the mechanical equipment sector, indicating a positive outlook compared to the broader market [2][10]. Core Insights - The mechanical equipment sector underperformed the CSI 300 index, with a decline of 0.81% compared to the index's increase of 1.07% during the week of September 22-26, 2025 [2][10]. - The textile and apparel equipment sub-sector showed the best performance with a rise of 2.27% [2][10]. - The report highlights the ongoing demand expansion for semiconductor equipment driven by the smart upgrade of consumer electronics [4][28]. - The humanoid robot sector is transitioning from demonstration to scalable deployment, with significant contracts being signed, such as a 30 million yuan deal for industrial humanoid robots [4][28]. - The report emphasizes the importance of the controlled nuclear fusion industry, noting that demand for related equipment is beginning to materialize as the industry moves towards engineering applications [4][28]. Summary by Sections Market Performance - The mechanical equipment sector ranked 16th out of 31 in the Shenwan industry rankings, with notable sub-sector performances [2][10]. - The overall PE-TTM for the mechanical equipment sector is reported at 37.6x, with the highest valuations in robotics and automation [18][19]. Key Developments - The report discusses significant advancements in the semiconductor equipment and materials supply chain, including the successful operation of a 12-inch silicon carbide substrate processing line by Jing Sheng Machinery [4][28]. - The report also mentions the delivery of a high-speed storage testing machine by Jing Zhi Da, enhancing its service capabilities in the semiconductor testing market [28]. Investment Recommendations - The report suggests focusing on leading robot manufacturers and core component suppliers, as well as companies involved in testing equipment for consumer electronics and semiconductor applications [4][28]. - It identifies specific companies to watch, including Dechang Motor Holdings and Huafeng Measurement Control, for their potential in the evolving market landscape [4][28].