Core Viewpoint - The mining machinery industry is expected to maintain high prosperity due to increasing geopolitical disturbances and countries' demands for self-sufficient supply chains, which is beneficial for the sector where North Industries Corporation operates [1] Industry Analysis - The report from Dongfang Securities indicates that domestic mining machinery has advantages in cost-effectiveness and customization, providing significant room for market share growth, which will positively impact the mining machinery sector [1] Financial Report Analysis - North Industries Corporation's Q3 2025 performance is projected to see a net profit attributable to shareholders ranging from 170 million to 185 million yuan, representing a year-on-year growth of 56.90% to 70.74% [1] - The valuation analysis shows a net profit of 181 million yuan, a year-on-year increase of 67.26%, with a return on equity of 10.51%, indicating a solid fundamental performance [1] Stock Performance - Over the last five trading days (as of February 13, 2026), North Industries Corporation's stock price has increased by 2.99%, although it experienced a single-day decline of 2.60% on February 13, closing at 30.35 yuan [1] - The trading volume reached 161 million yuan on February 10, with a turnover rate of 3.04%, while the trading volume decreased to 96 million yuan on February 13, reflecting cautious market sentiment [1] Recent Events - On February 10, 2026, North Industries Corporation announced the appointment of Su Xiangjun as the secretary of the board, further improving the company's governance structure [1]

Core Viewpoint - The current upturn in the mining machinery industry is driven by geopolitical tensions and the demand for resource supply chain stability, rather than just commodity price increases and Federal Reserve interest rate cuts [2] Group 1: Industry Outlook - The mining machinery industry's high prosperity is expected to continue due to increased capital expenditure from mining companies responding more quickly to price changes, influenced by geopolitical factors [2] - The global market share of Chinese mining machinery remains low, with only 19.21% of the top 50 global mining equipment manufacturers' sales attributed to Chinese companies, indicating significant room for growth [3] Group 2: Competitive Advantages - Chinese mining machinery has competitive advantages in terms of cost-effectiveness and customized equipment design, which positions it well in the context of a self-sufficient resource supply chain [3] Group 3: Investment Opportunities - The Belt and Road Initiative (BRI) is expected to boost the overseas expansion of Chinese mining machinery, further increasing its market share as investments in energy and metal mining projects grow [4] - The current phase of the mining machinery industry's prosperity is expected to last longer, presenting investment opportunities, particularly in companies like XCMG Machinery, NPE Mining Machinery, SANY International, Shantui, Tongli, and Northern Heavy Industries [5]

Investment Rating - The industry investment rating is "Positive" and is maintained [5] Core Viewpoints - The current upturn in the mining machinery sector is expected to be more sustained, presenting investment opportunities. The sector is currently in the first phase of a three-phase cycle, which includes bulk raw material development, energy extraction, and construction utilization. Companies involved in mining machinery are likely to benefit from this upward trend [3] - The ongoing geopolitical disturbances globally are expected to enhance the high prosperity of the mining machinery industry. Unlike previous cycles, the current upturn is driven by intensified competition for resources and a stronger demand for supply chain stability, leading to increased capital expenditures by mining companies [8] - The trend towards self-sufficiency in resource supply chains presents significant growth potential for domestic mining machinery manufacturers. Currently, Chinese mining machinery holds a relatively low global market share, with only 19.21% of the top 50 global mining equipment manufacturers' sales attributed to Chinese companies [8] - The Belt and Road Initiative (BRI) is anticipated to drive the export of Chinese mining machinery, further increasing its market share. Increased foreign investment in energy and metal mining projects under the BRI is expected to boost demand for related equipment [8] Summary by Sections - **Investment Suggestions and Targets**: The report identifies several companies that are expected to benefit from the mining machinery industry's upturn, including XCMG Machinery, NPE Mining Machinery, SANY International, Shantui, Tongli Co., and Northern Heavy Industries [3] - **Market Dynamics**: The report highlights that the mining machinery industry's current high prosperity is influenced by rising prices of bulk products and the Federal Reserve's interest rate cuts, but emphasizes that the key factor is the geopolitical landscape and its impact on capital expenditures [8] - **Market Share Analysis**: The report notes that the top five global mining machinery companies are all foreign, with a combined sales figure of approximately $42.2 billion, indicating a significant opportunity for Chinese manufacturers to increase their market share through competitive advantages [8]