Investment Rating - The report maintains a "Positive" investment rating for the machinery industry [10] Core Insights - The demand for production and construction equipment is expected to benefit from the acceleration of overseas factory establishment, driven by tariff impacts and local workforce training considerations [8] - The export growth trend of production industrial products continues, with significant increases in injection molding machines and industrial robots, showing year-on-year growth rates of +39% and +46% respectively [2][20] - Emerging markets are anticipated to see an increase in per capita consumption as manufacturing capacity shifts and income levels rise, creating additional demand [8] Summary by Category By Product - The export growth of production industrial products is sustained, with notable increases: - Metal cutting machine tools: +25% year-on-year in May [6] - Mechanical gears and transmission parts: +10% year-on-year in May [6] - Injection molding machines: +39% year-on-year in May [20] - Industrial robots: +46% year-on-year in May [20] By Region - In May 2025, significant acceleration in exports to South Asia, Southeast Asia, and Africa was observed: - South Asia: Industrial robots +116%, injection molding machines +63%, mechanical gears +31%, metal cutting machine tools +25% [7] - Southeast Asia: Metal cutting machine tools +104%, injection molding machines +105% [7] - Africa: Industrial robots +2277%, mechanical gears +289%, laser equipment +122% [7] Market Trends - The report indicates that the overseas manufacturing sector is experiencing an acceleration in factory establishment, with high-end equipment exports expected to benefit first due to China's global competitiveness [8] - Domestic demand shows resilience, with signs of capacity clearing in certain sectors, and leading companies are expected to see profit margins recover [8]