Investment Rating - The report rates the mechanical industry as "Overweight" [25] Core Views - The mechanical industry is experiencing a recovery driven by both domestic demand and technological advancements, particularly in AI and robotics [2] - Key investment opportunities include humanoid robots, engineering machinery, photovoltaic equipment, lithium battery equipment, and AI infrastructure [2][3] Summary by Sections 1. Mechanical Industry Q3 Performance Overview - As of Q3 2025, the A-share mechanical industry had 546 listed companies, achieving a total revenue of CNY 16,173.11 billion, a year-on-year increase of 8.7% [8] - The net profit attributable to shareholders reached CNY 1,095.91 billion, up 15.9% year-on-year, with gross and net profit margins at 22.4% and 7.5% respectively [8][13] 2. AI Manufacturing: Humanoid Robots and AI Terminal Resonance - The humanoid robot sector is approaching mass production, with revenue growth stabilizing at 0.4% year-on-year for the first three quarters of 2025 [28] - The industry is witnessing a recovery in profitability, with net profit increasing by 9.6% year-on-year [31] 3. Manufacturing Going Abroad - External demand recovery is driving order restoration, particularly in engineering machinery, with excavator sales reaching 174,000 units, a year-on-year increase of 18.1% [2] - The oil service equipment sector benefits from resilient oil prices and increased deep-sea oil and gas investments [2] 4. Domestic Demand Recovery - The macroeconomic environment is stabilizing, with expectations for performance recovery in the industry [4] - The machine tool sector is showing signs of recovery, supported by policy measures [4] 5. Energy Equipment - The energy equipment sector is rebounding, with photovoltaic equipment seeing a return to rational competition and improved profitability [5] - Lithium battery equipment is experiencing a demand surge due to advancements in solid-state battery technology [5]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Overall, steel prices weakened this week due to the release of macro - sentiment and a weak supply - demand pattern in the steel market. Steel fundamentals are weak, and steel prices are expected to continue to fluctuate weakly. Iron ore prices also weakened, affected by macro - interference and concerns about the decline in hot metal production. The short - term iron ore price is also expected to fluctuate weakly [5][50][52]. 3. Summary According to the Directory 3.1 Report Summary - Market focus includes tariff adjustments on US - imported goods, 2000 billion yuan of new special bond quotas for provincial investment, the US government shutdown, and the decline of China's manufacturing PMI in October. Key data shows a decrease in steel exports in October, a decline in daily steel production in late October, and a decrease in steel inventories. The main view is that steel and iron ore prices are expected to fluctuate weakly [5]. 3.2 Multi - and Short - Focus 3.2.1 Multi - and Short - Factors Analysis (Rebar) - Bullish factors: domestic policy expectations remain, and steel production has decreased. Bearish factors: the decline of Sino - US manufacturing PMI, the impact of short - term dollar liquidity risks on the market, weakening steel demand, limited reduction in rebar inventory, and the re - accumulation of hot - rolled coil inventory [8]. 3.2.2 Multi - and Short - Factors Analysis (Iron Ore) - Bullish factors: domestic policy expectations remain, and the weekly shipment has decreased. Bearish factors: the decline of Sino - US manufacturing PMI, the impact of short - term dollar liquidity risks on the market, the continuous decline of hot metal production, and the continuous accumulation of port inventory [9]. 3.3 Data Analysis 3.3.1 Macro - In October, China's manufacturing PMI was 49%, a 0.8 - percentage - point decline from the previous month. The production and new order indices also decreased. The US ISM manufacturing PMI in October was 48.7, contracting for the eighth consecutive month, while the service PMI rose to 52.4. The US government shutdown may reduce the Q4 economic growth rate by up to 2 percentage points, and about 14 billion US dollars of economic losses may be irreparable. The suspension of fiscal expenditure has frozen about 70 billion US dollars of funds, increasing the risk aversion in the market and pressuring industrial products [10][11]. 3.3.2 Terminal - In October, the average monthly working hours of China's construction machinery products decreased by 9.03% year - on - year, and the monthly startup rate was 55%, a 10.1 - percentage - point decline year - on - year. From January to June 2025, China's shipbuilding completion volume decreased by 3.5% year - on - year, and new orders decreased by 18.2% year - on - year, while the order backlog increased by 36.7% year - on - year [17]. 3.3.3 (Rebar) Spot - The spot price of rebar decreased, and the basis widened [18]. 3.3.4 Profit - This week, the profitability rate of steel mills decreased by 5.19 percentage points to 39.83% [20]. 3.3.5 Production - The blast furnace operating rate of 247 steel mills nationwide increased by 1.38 percentage points to 83.13%, while the electric furnace operating rate decreased by 1.8 percentage points to 67.03%. The output of five building materials was 856.74 (- 18.55) million tons, rebar output was 208.54 (- 4.05) million tons, and hot - rolled coil output was 318.16 (- 5.4) million tons. Some steel mills in Tangshan and Shanxi have planned production cuts [22][26]. 3.3.6 Apparent Demand - The apparent demand for five building materials was 866.91 (- 49.51) million tons, rebar apparent demand was 218.52 (- 13.67) million tons, and hot - rolled coil apparent demand was 314.3 (- 17.59) million tons. Thailand has launched an anti - circumvention investigation on Chinese hot - rolled steel [29]. 3.3.7 Inventory - The total inventory of five building materials was 1503.57 (- 10.17) million tons, rebar total inventory was 592.54 (- 9.98) million tons, and hot - rolled coil total inventory was 410.45 (+ 3.86) million tons. The reduction of rebar inventory was slow, and hot - rolled coil inventory re - accumulated [32]. 3.3.8 Spread - The hot - rolled coil to rebar spread slightly widened [33]. 3.3.9 (Iron Ore) Spot - The spot price of iron ore decreased, and the basis widened [35]. 3.3.10 Import and Shipment - In October, China imported 111.309 million tons of iron ore, a 4.3% month - on - month decrease. From October 27 to November 2, the global iron ore shipment was 32.138 million tons, a 1.745 - million - ton decrease from the previous week [39]. 3.3.11 Arrival - From October 27 to November 2, the arrival volume of 47 ports in China was 33.141 million tons, a 12.298 - million - ton increase from the previous week [40]. 3.3.12 Hot Metal Production - This week, the average daily hot metal production of 247 steel mills nationwide was 2.3422 million tons, a 21,400 - ton decrease from the previous week [42]. 3.3.13 Port Inventory - This week, the total inventory of imported iron ore at 45 ports was 148.98383 million tons, a 3.5635 - million - ton increase. The average daily port clearance volume was 3.2093 million tons, a 7700 - ton increase from the previous week [46]. 3.3.14 Steel Mill Consumption and Inventory - This week, the total inventory of imported iron ore in steel mills was 90.0994 million tons, a 1.6008 - million - ton increase. The daily consumption was 2.887 million tons, a 29,200 - ton decrease. The inventory - to - consumption ratio was 31.21 days, a 0.86 - day increase [48]. 3.4后市研判 - Steel prices are expected to continue to fluctuate weakly due to weak fundamentals. Iron ore prices are also expected to fluctuate weakly in the short - term due to weak supply - demand and accumulated port inventory [50][52].

Excavator Sales - In October 2025, a total of 18,096 excavators were sold, representing a year-on-year increase of 7.77% [1] - Domestic sales accounted for 8,468 units, with a growth of 2.44%, while exports reached 9,628 units, showing a growth of 12.9% [1] - From January to October 2025, total excavator sales reached 192,135 units, marking a year-on-year increase of 17% [1] - Domestic sales during this period were 98,345 units, up by 19.6%, and exports totaled 93,790 units, increasing by 14.4% [1] - In October, 16 electric excavators were sold across various weight categories [1] Loader Sales - In October 2025, a total of 10,673 loaders were sold, reflecting a significant year-on-year increase of 27.7% [2] - Domestic sales comprised 5,372 units, with a growth of 33.2%, while exports were 5,301 units, increasing by 22.6% [2] - For the period from January to October 2025, total loader sales reached 104,412 units, representing a year-on-year increase of 15.8% [2] - Domestic sales during this timeframe were 55,368 units, up by 21.8%, and exports totaled 49,044 units, with a growth of 9.69% [2] - In October, 2,707 electric loaders were sold across various weight categories [2]

Core Insights - The evaluation results for information disclosure of listed companies in 2024 have shown a decline compared to 2023, with Noli Co., Ltd. dropping two levels from "Excellent" to "Qualified" [1][2]. Company Overview - Noli Intelligent Equipment Co., Ltd. is located in Changxing County, Zhejiang Province, and was established on March 3, 2000, with its listing date on January 28, 2015 [1]. - The company's main business involves the research, production, and sales of light-duty handling vehicles and electric storage vehicles [1]. - The revenue composition of Noli Co., Ltd. is as follows: 60.67% from intelligent manufacturing equipment and 39.51% from smart logistics [1]. Industry Classification - Noli Co., Ltd. belongs to the Shenwan industry classification of machinery equipment, specifically engineering machinery and complete engineering machinery [1]. - The company is associated with several concept sectors, including unmanned driving, small-cap stocks, high dividend yield, express delivery concepts, and industrial internet [1].

Core Insights - The company Shanhe Intelligent reported on November 7 that as of October 31, 2025, it had a total of 198,433 shareholders [2] Company Summary - Shanhe Intelligent's shareholder count is projected to reach 198,433 by the end of October 2025 [2]

Core Insights - The engineering machinery sector experienced a slight increase of 0.05% on November 7, with Zhongji United leading the gains [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] Engineering Machinery Sector Performance - Zhongji United (605305) closed at 48.26, up 2.31% with a trading volume of 120,500 shares and a transaction value of 581 million [1] - Shantui (000680) closed at 11.30, up 1.99% with a trading volume of 291,100 shares and a transaction value of 327 million [1] - TuoShan Heavy Industry (001226) closed at 38.32, up 1.35% with a trading volume of 11,800 shares and a transaction value of approximately 44.99 million [1] - Hengli Hydraulic (601100) closed at 94.22, up 1.15% with a trading volume of 112,900 shares and a transaction value of 1.061 billion [1] - Liugong (000528) closed at 12.07, up 1.09% with a trading volume of 477,800 shares and a transaction value of 572 million [1] - Other notable performers include Tongli Co. (665GOZG) up 1.01%, Zhejiang Dingli (603338) up 0.93%, and Sany Heavy Industry (600031) up 0.64% [1] Fund Flow Analysis - The engineering machinery sector saw a net outflow of 207 million from main funds, while retail investors contributed a net inflow of 1.48 billion [2] - Speculative funds recorded a net inflow of approximately 58.98 million [2]

Core Viewpoint - Zhonglian Heavy Industry (01157) reported a revenue of 37.156 billion RMB for the first three quarters of 2025, representing a year-on-year growth of 8.1%, and a net profit attributable to shareholders of 3.92 billion RMB, up 24.9% year-on-year [1] Financial Performance - In Q3 2025, the company achieved a revenue of 12.301 billion RMB, which is a 24.9% increase compared to the same quarter last year, with a net profit attributable to shareholders of 1.156 billion RMB, reflecting a year-on-year growth of 35.8% [1] - The performance aligns with the expectations set by CICC [1] Earnings Forecast and Target Price - CICC maintains the earnings per share forecast for Zhonglian Heavy Industry at 0.58 RMB for 2025 and 0.73 RMB for 2026 [1] - Based on the upward adjustment of industry valuation, CICC raised the target prices for A-shares and H-shares by 17.5% and 31.9% respectively, with the A-share target price now set at 11 RMB and the H-share target price at 10 HKD [1] - The company maintains an "outperform" rating in the industry [1]

Core Viewpoint - Zhonglian Heavy Industry (000157) reported a revenue of 37.156 billion RMB for the first three quarters of 2025, representing a year-on-year growth of 8.1%, and a net profit attributable to shareholders of 3.92 billion RMB, up 24.9% year-on-year [1] Financial Performance - In Q3 2025, the company achieved a revenue of 12.301 billion RMB, which is a 24.9% increase compared to the same quarter last year, and a net profit of 1.156 billion RMB, reflecting a year-on-year growth of 35.8% [1] - The performance aligns with the expectations set by CICC [1] Earnings Forecast and Target Price - CICC maintains the earnings per share forecast for Zhonglian Heavy Industry at 0.58 RMB for 2025 and 0.73 RMB for 2026 [1] - Due to the upward adjustment of industry valuation, CICC raised the target prices for both A-shares and H-shares by 17.5% and 31.9% respectively, setting the A-share target price at 11 RMB and the H-share target price at 10 HKD [1] - The company continues to hold an "outperform" rating in the industry [1]

Group 1 - The report highlights the ongoing "anti-involution" policies that have been catalyzed by recent government actions, which are expected to extend investment durations and shift market dynamics towards supply-side constraints and orderly competition [2][3][4] - The "anti-involution" policies are now integrated into the five-year plan, indicating a shift in focus from short-term inventory cycles to medium-term capacity cycles, which is anticipated to positively influence prices and performance in the coming year [3][4][14] - The report notes that the current bull market is transitioning from liquidity-driven to inflation-driven, with M1 and corporate cash recovery providing a conducive environment for inflation to return, thereby enhancing the elasticity of tightly supplied cyclical products [4][5][17] Group 2 - The report identifies specific industries that are likely to benefit from the "anti-involution" policies, particularly those with tight supply conditions, including non-ferrous metals, steel, coal, petrochemicals, and certain consumer sectors [6][26] - It emphasizes the importance of monitoring cyclical industries that are undervalued yet exhibit high elasticity, such as coal, steel, and construction materials, which are expected to see significant profit growth as the economic environment improves [5][26] - The report suggests that the recovery of commodity prices, such as polysilicon and coal, indicates a potential bottoming out of prices, which could lead to a new cycle of profit growth driven by the "anti-involution" measures [26]

Core Insights - On November 6, 29 target price adjustments were made by brokerages for listed companies, with notable increases for CITIC Securities, Tongli Co., and Ailis, showing target price increases of 44.71%, 42.53%, and 38.88% respectively, across the securities, engineering machinery, and chemical pharmaceutical industries [1][2]. Group 1: Target Price Increases - CITIC Securities received a target price increase to 42.24 yuan, representing a 44.71% increase [2]. - Tongli Co. was assigned a target price of 31.00 yuan, reflecting a 42.53% increase [2]. - Ailis was given a target price of 141.56 yuan, indicating a 38.88% increase [2]. - Other companies with significant target price increases include Zhongchong Co. (37.58%), Yongyi Co. (35.45%), and BYD (35.36%) [2]. Group 2: Brokerage Recommendations - A total of 109 listed companies received brokerage recommendations on November 6, with notable mentions including Teruide, Jinghe Integration, and Fuyao Glass, each receiving two recommendations [3][4]. - Teruide had a closing price of 30.30 yuan and was in the electric grid equipment sector [4]. - Jinghe Integration closed at 32.99 yuan in the semiconductor industry [4]. - Fuyao Glass had a closing price of 67.51 yuan, operating in the automotive parts sector [4]. Group 3: Rating Changes - Tianfeng Securities upgraded the rating for Taisheng Wind Power from "Hold" to "Buy" on November 6 [5]. - Three companies received initial coverage from brokerages, including Daimai Co. (rated "Buy"), Zhongji Huanjie (rated "Hold"), and Hengli Hydraulic (rated "Hold") [6].