Investment Rating - The report maintains a positive investment rating for the engineering machinery industry, indicating a favorable outlook for growth [6]. Core Insights - The low-altitude economy is steadily developing, supported by various government policies aimed at enhancing infrastructure and safety in the sector [2][3]. - The engineering machinery sector is expected to continue its steady growth, with significant increases in both imports and exports, reflecting strong competitive advantages for domestic leading enterprises [3]. - The report highlights a robust performance in the mechanical equipment sector, with a notable increase in the Shanghai Composite Index and specific sub-sectors outperforming the broader market [11][12]. Summary by Sections Weekly Market Review - From October 20 to October 24, 2025, the Shanghai Composite Index rose by 2.88%, while the Shenzhen Component Index and the ChiNext Index increased by 4.73% and 8.05%, respectively. The Shenwan Mechanical Equipment Index rose by 4.71%, outperforming the CSI 300 Index by 1.47 percentage points, ranking 4th among 31 Shenwan first-level industries [11][12]. - Sub-sectors such as general equipment, specialized equipment, and engineering machinery saw increases of 4.99%, 5.48%, and 3.07%, respectively [11]. Key Sector Tracking - The report emphasizes the low-altitude economy, with the Civil Aviation Administration of China releasing regulations to support general aviation and low-altitude economic applications. The Guangdong provincial government has also introduced measures to promote high-quality development in this sector [2]. - In the mechanical equipment sector, China's engineering machinery import and export trade reached USD 5.505 billion in September 2025, marking a year-on-year increase of 29.1%, with exports growing by 29.6% [3]. Investment Recommendations - For the low-altitude economy, recommended companies include Deep City Transportation, Sujiao Science and Technology, and Wan Feng Ao Wei. In the complete machine segment, companies like Yihang Intelligent and Zongheng Co. are highlighted. Key component manufacturers include Zongshen Power and Wolong Electric Drive [4]. - In the mechanical equipment sector, recommended companies include Sany Heavy Industry, XCMG, and Anhui Heli for engineering machinery, and companies like Huazhong CNC and Kede CNC for industrial mother machines [4].

Group 1: Computing Power Chip Sector - The computing power chip concept saw a strong rebound, with Cambrian-U (688256) rising over 7% during trading, pushing its market capitalization back above 600 billion yuan [2] - The Ministry of Industry and Information Technology released a draft guideline for the construction of a computing power standard system, aiming to revise over 50 standards by 2027 across various areas including basic general computing, computing facilities, and computing applications [2] - The initiative is expected to involve over 500 enterprises in standard promotion and implementation, enhancing innovation and development within the computing power sector [2] Group 2: Satellite Navigation Sector - The satellite navigation sector experienced a short-term surge, with Sanwei Communication (002115) hitting the daily limit before retreating, ultimately rising over 6% [3] - The first "Xiong'an-made" satellite, "Xiong'an No. 1," has completed production, marking a significant milestone in the intelligent manufacturing capabilities of the Xiong'an New Area [3] - This satellite focuses on key technological innovations that address challenges in computing power, energy constraints, and propulsion efficiency, contributing to the development of high-throughput, long-lifespan, and intelligent communication satellites [3] Group 3: Oil and Gas Extraction and Services Sector - The oil and gas extraction and services sector saw continuous gains, with companies like Beiken Energy, PetroChina Oilfield Services, and Huibo Pu hitting the daily limit, while others like Keli Co. and Huai Oil Co. also experienced increases [3]

Group 1 - The Ministry of Industry and Information Technology is soliciting opinions on the "Guidelines for the Construction of Computing Power Standard System (2025 Edition)", aiming to revise and formulate over 50 standards by 2027 in areas such as basic general computing, computing facilities, and green low-carbon initiatives [1] - First Shanghai Securities is optimistic about the sustained high growth of computing power demand driven by AI applications, noting that both domestic and international AI applications are reaching a commercialization inflection point [1] - Domestic computing power capacity bottlenecks are expected to be broken through, with a forecast that domestic chip production will ramp up significantly by 2026 [1] Group 2 - Huaxi Securities recommends focusing on the domestic computing power industry chain, highlighting the recent unexpected growth of Alibaba Cloud and the launch of Huawei's super node cluster products, which have increased attention on domestic computing power and AI applications [1] - The successful IPO of Moore Threads is expected to accelerate the scale and penetration of domestic AI computing power, with advancements in manufacturing processes and chip architecture likely to enhance overall domestic computing power levels [1] - Zhejiang Securities anticipates that the global AI sector will continue to thrive through the first three quarters of 2025, with major companies like OpenAI, Oracle, and Google maintaining high investment levels [2] - The shipment ratio of ASICs is expected to gradually increase, with notable growth in performance in niche areas such as optical modules and liquid cooling [2]

Group 1: New Stock Offerings - Dana Biological is offering a new stock with a subscription code of 920009, an issue price of 17.10 yuan per share, and a subscription limit of 360,000 shares [1] Group 2: Economic and Trade Developments - The Ministry of Commerce held a roundtable with over 170 foreign enterprises, indicating a commitment to expand foreign investment and support high-quality development in China [2] - The Chinese government is emphasizing the need for equal and respectful negotiations in the ongoing US-China trade discussions, stating that trade wars do not benefit either side [2] Group 3: Industry Standards and Guidelines - The Ministry of Industry and Information Technology is soliciting opinions on a draft guideline for building a computing power standard system by 2027, aiming to revise over 50 standards and promote innovation and collaboration in technology [3] - Guangdong Province has launched an action plan to enhance the quality of manufacturing through artificial intelligence, focusing on various sectors and supporting the development of intelligent factories [4] - Zhejiang Province aims to cultivate 10 leading intelligent development platforms and 1,000 intelligent products by 2027, with a goal of achieving over 70% application rate of intelligent systems [5] Group 4: Consumer and Tourism Initiatives - Guizhou Province is enhancing its tourism sector by creating world-class destinations and improving the quality of existing attractions, while also promoting diverse tourism products [6] - Shanghai is encouraging the integration and upgrading of construction enterprises to foster new growth drivers in the industry [7] - Guangzhou is implementing measures to boost consumer spending and stabilize investor returns through various economic initiatives [7] Group 5: Company Performance Highlights - Pop Mart reported a year-on-year revenue increase of 245% to 250% in the third quarter [8] - Jin Gu shares have been selected for a low-carbon wheel project by a global leading automotive company [9] - China Telecom's net profit for the first three quarters increased by 5.03% year-on-year [9] - Shiyida's net profit surged by 471.34% in the third quarter [9] - Wanchen Group's net profit for the first three quarters increased by 917.04%, with a proposed dividend of 1.5 yuan per 10 shares [9] - Shengnong Development's net profit rose by 202.82% in the first three quarters, proposing a dividend of 3 yuan per 10 shares [9] - China National Materials Technology reported a 234.84% increase in net profit for the third quarter [9] - Grebo secured significant orders for lithium battery outdoor power equipment from a leading US home improvement retailer [9]

Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) is soliciting opinions on the draft of the "Guidelines for the Construction of Computing Power Standard System (2025 Edition)", aiming to establish over 50 standards by 2027 to enhance the computing power standard system [1] Group 1: Standards Development - The guidelines focus on various aspects including basic general standards, computing power facilities, computing power equipment, computing network integration, computing power interconnection, computing power platforms, computing power applications, computing power security, and green low-carbon initiatives [1] - The initiative aims to promote the development of a standard system that supports innovation and development in enterprises, with over 500 companies expected to participate in the promotion and implementation of these standards [1] Group 2: Collaboration and Innovation - The guidelines emphasize the importance of collaboration among research institutions, industry associations, and industrial alliances to develop standards, fostering communication and cooperation in technology innovation, industrial promotion, infrastructure construction, and talent cultivation [1] - The initiative is designed to effectively support the construction of a national integrated computing power network, enhancing the overall capabilities of the industry [1]

Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) is soliciting opinions on the draft of the "Guidelines for the Construction of Computing Power Standard System (2025 Edition)", aiming to establish over 50 standards by 2027 to enhance the computing power standard system [1] Group 1: Standards Development - The draft outlines the development of standards in areas such as basic general standards, computing power facilities, computing power equipment, computing network integration, computing power interconnection, computing power platforms, computing power applications, computing power security, and green low-carbon initiatives [1] - More than 500 enterprises are expected to participate in the promotion and implementation of these standards, leading to the formation of a number of standard application cases [1] Group 2: Collaborative Mechanisms - The initiative promotes a collaborative standard development mechanism involving research institutions, industry associations, and industrial alliances to foster technological innovation, industrial promotion, infrastructure development, and talent cultivation [1] - The efforts aim to effectively support the construction of a national integrated computing power network [1]