$1 Billion Illinois Firm Thrives Thanks To Its Cozy Caterpillar Relationships https://t.co/ADANrQ1ruD https://t.co/6HgVJTFwl0 ...

China’s key construction machinery sales jumped in the first half, indicating improving demand across the economically crucial sector https://t.co/z9vhnCqEXB ...

Summary of J.P. Morgan Japan Equity Strategy Conference Call Industry Overview - The conference call primarily discusses the **Japanese corporate sector**, focusing on the findings from the **June BOJ Tankan survey** regarding business sentiment and corporate earnings forecasts. Key Points and Arguments Impact of US Tariffs - The June BOJ Tankan indicates that **US tariffs have not significantly dampened corporate sentiment**, with a business conditions diffusion index (DI) for large manufacturers remaining steady at **13 points**, surpassing the Bloomberg consensus of **10 points** [1][4] - However, corporate earnings forecasts predict a **10% drag on net profit**, particularly affecting the **manufacturing sector**, especially **automobiles** and other processing industries [1][4] Corporate Earnings Forecasts - The FY2025 net profit growth forecast for large enterprises is revised to **-5.3%**, down from **-1.3%** in the March survey, aligning with the broader TSE Prime constituents' forecast of **-5.8%** [1][4] - **Manufacturers** lowered their profit growth forecast to **-9.8%**, while **non-manufacturers** raised theirs to **-0.8%** from **-2.0%** [1][4] Sales and Capital Expenditure (Capex) - Both manufacturers and non-manufacturers have increased their sales forecasts, with capex plans revised sharply upward to **+11.5% YoY** overall for large enterprises, driven by investments in **semiconductors**, **automation**, and **power transmission/distribution** [1][5] - Capex growth for manufacturers is projected at **+14.3%**, while non-manufacturers expect **+9.9%** [5] Foreign Exchange and Inflation Outlook - The corporate forex estimate for FY2025 is set at **¥145/$**, indicating a **4% YoY strengthening of the yen**, which is expected to negatively impact EPS by approximately **2 percentage points** [5][30] - The inflation outlook has slightly decreased, with companies expecting general prices to rise by **2.4%** in one year, down from **2.5%** previously [5][31] Sector-Specific Insights - Business conditions DI worsened in sectors more exposed to US tariffs, such as **automobiles** and **machinery**, while sectors like **materials** (paper & pulp, steel, oil & coal) and **construction** showed improvement [4][5] - The market consensus appears more cautious than company outlooks in sectors like **steel**, **services**, and **paper & pulp**, while being relatively optimistic for **electric & gas utilities**, **real estate**, and **communications** [4][5] Overall Corporate Sentiment - Despite the challenges posed by tariffs, corporate earnings remain resilient, particularly in domestic non-manufacturing sectors, which aligns with the investment strategy focusing on domestic demand sectors and potential upside in **semiconductors** and **machinery** [1][5] Additional Important Information - The report highlights the **limited impact of tariffs** on business conditions, with a flat DI for manufacturers and slight deterioration for non-manufacturers, which was in line with market expectations [4][5] - The report also notes that the **FY2025 TOPIX consensus EPS** has seen downward revisions in overseas demand sectors, particularly **automobiles**, which have been lowered by **18%** over the past three months, yet still shows a modest **+3.3% YoY profit growth forecast** as of end-June [4][5] This summary encapsulates the critical insights from the conference call, providing a comprehensive overview of the current state of the Japanese corporate sector and its outlook amidst external pressures.

Core Insights - The industrial sector has shown resilience in 2025, with two major companies increasing their dividends and another likely to follow suit [1][2] Group 1: Sector Performance - As of June 20, the S&P 500 industrials sector is the best-performing sector, with a total return of approximately 8.4%, outperforming utilities by around 1% [2] - In contrast, the overall S&P 500 has a total return of less than 2% [2] Group 2: Dividend Increases - Delta Air Lines (DAL) announced a 25% increase in its quarterly dividend, raising it to $0.1875 per share, resulting in an annual dividend of $0.75 and a yield of nearly 1.6% [5][6] - Caterpillar (CAT) raised its quarterly dividend by 7% to $1.51 per share, marking 31 consecutive years of dividend increases, with an expected annual payout of $6.04 and a yield of just under 1.7% [9][10] - Airbus Group has not officially declared a dividend increase but has raised its payout ratio range to 50%, suggesting potential future increases [12][13][14] Group 3: Market Position and Analyst Sentiment - Delta Air Lines is the most valuable stock in the passenger airlines industry, with a market capitalization of approximately $31 billion [5] - Caterpillar is valued at around $170 billion, making it the most valuable U.S. stock in the machinery industry [9] - Airbus is one of the world's five largest stocks in the aerospace and defense industry, indicating its significant market position [12]

Investment Rating - The report maintains a "Buy" rating for Volvo CE, indicating confidence in its growth potential within the machinery sector [27]. Core Insights - Domestic demand for trucks is accelerating, while construction machinery demand is moderating due to factors such as replacement policies and seasonal effects [2][3]. - The growth for construction machinery may have peaked in Q1 2025, with a notable slowdown observed in recent months [3][6]. - Sany expects a 20% year-on-year growth in domestic demand for excavators for the full year, despite a challenging competitive landscape [10][12]. - The electrification of machinery is gaining traction, with significant implications for exports, particularly to Europe [14][16]. Summary by Sections Domestic Demand - There is a divergence in domestic demand, with trucks experiencing growth while construction machinery sales are moderating due to replacement policies and seasonal factors [2][3]. - Sany reported a moderation in machine fleet operating rates and utilization hours, indicating a slowdown in demand [6]. Exports - Demand for exports is stronger in Southeast Asia and Africa, while the CIS region shows weakness [9]. - Sany's excavator export volume increased by 16% year-on-year in the first five months of 2025, with a focus on Asia and Africa [12][13]. Technology and Electrification - The focus on electrification is rising, with Chinese OEMs aiming to penetrate European markets, which are more challenging under traditional internal combustion engine (ICE) standards [14][16]. - Weichai and Sinotruk anticipate a ceiling for electrification penetration in heavy-duty trucks at 25-30% due to infrastructure constraints [16]. Competitive Landscape - Pricing pressure has resurfaced in the industry, particularly for large-sized machines and electrified heavy-duty trucks (eHDTs) [17][18]. - The emergence of a "shared excavators" business model is noted, contributing to monthly sales volume but not considered real demand [20].

Investment Rating - The report provides an "Overweight" (OW) rating for several companies, indicating a positive outlook for their performance in the market [9][13]. Core Insights - The report highlights opportunities arising from the trade war and China's stimulus measures in the near term [5]. - Medium-term growth is expected to be driven by the "China+1" strategy, post-war reconstruction, and advancements in robotics [6]. - Long-term stability is supported by structural growth drivers within the industry [7]. Company Summaries - Shenzhen Inovance is positioned to benefit from the industrial automation (IA) cycle inflection [9]. - Weichai Power is anticipated to experience growth as China's heavy-duty truck (HDT) market enters an upcycle [9]. - Evergreen Marine is expected to gain from supply chain adjustments [9]. - SANY and XCMG are set to benefit from increasing demand for construction machinery [9]. - Sanhua and Leader Drive are identified as key players in the humanoid robot sector [9]. - C SF Holdings and ICT are likely to benefit from further supply chain adjustments [9]. - Weichai's market share in large-bore engines is projected to grow significantly [9]. - TTI is sustaining growth through innovation and a shift towards cordless tools [9]. - CRRC is benefiting from high-speed train demand and the phase-out of diesel engines [9]. - ST Engineering is expanding internationally amid geopolitical tensions [9].

Investment Rating - The report assigns a "Buy" rating to AstraZeneca, placing it on the Conviction List, while other companies like Roche are rated "Sell" [2]. Core Insights - The Utilities sector is entering a new era characterized by growing power demand and earnings, driven by the modernization of the grid and increased energy security needs. Europe may require EUR 2 trillion to modernize its power system after years of underinvestment [1]. - The SERD class of breast cancer therapies is highlighted as a key focus area, with AstraZeneca's camizestrant positioned favorably for long-term growth, potentially worth over $15 billion by 2035 [2]. Summary by Sections Utilities Sector - The Utilities sector is experiencing a resurgence with power demand growing after 15 years of decline, and companies are returning capital to shareholders. Key players identified as 'Electrification Compounders' include EDPR, RWE, SSE, National Grid, Iberdrola, E.ON, Enel, and Engie [1]. - The recent Spanish blackout has sparked discussions on the need for significant investment in the power system, with estimates suggesting EUR 2 trillion is needed for modernization [1]. Pharmaceutical Sector - AstraZeneca's camizestrant is seen as a critical driver for the company's growth, especially in the context of a large eligible patient population exceeding 500,000 globally. The SERD class of therapies could generate substantial revenue by 2035 [2]. - The report emphasizes the importance of upcoming data presentations as potential catalysts for market recognition of AstraZeneca's unique positioning in breast cancer treatment [2].

据了解，全省119所技工院校已与2700多家知名企业（华为、京东、科大讯飞等）建立合作关系， 组建23个特色产业联盟（集团），开设2152个订单班、冠名班和企业新型学徒班，近年来毕业生就业率 维持在98%以上。 记者观察发现，随着数字化和人工智能加速进入生产生活领域，新增专业的行业界限越来越模糊。 如徐州机电技师学院的"数字化设计与制造"高级工专业、徐州工程机械技师学院的"智能装备运行与维 护"技师专业属于机械大类，而常州技师学院的"人工智能技术应用"分布在信息大类，苏州市吴中技师 学院今年新增的"工业机器人应用与维护"又属于电子电工大类。专家认为，这反映了数字化和人工智能 技术的普及正在打破传统行业界限，高端化、复合型技能人才正成为新需求。 省人社厅5月14日发布消息，根据《江苏省技工院校教学管理规范》，经专家审核、综合评议，江 苏拟在南京技师学院等65所技工院校增设"数字媒体技术应用"等138个专业，其中有6个专业是江苏技工 院校根据地方产业发展需求，在国内首次开设。 今年新增专业，大多是应校企合作企业用工需求而设立。"此次增设的138个专业中，41个专业与数 字技能相关、33个专业与先进制造业相关、22 ...

Market Overview - A-shares showed a strong overall performance today, with the Shanghai Composite Index rising by 0.86% to 3403.95 points, and the Shenzhen Component Index increasing by 0.64% [1] - The trading volume in the Shanghai and Shenzhen markets reached 1.32 trillion yuan, an increase of 25.2 billion yuan compared to the previous trading day [1] - The market sentiment appears balanced in the short term, with over 2300 stocks rising and more than 2800 stocks falling [1] Tariff Negotiations - The recent US-China tariff negotiations exceeded expectations, with significant tariff reductions announced, including the cancellation of a 91% retaliatory tariff and a temporary exemption of 24% of the equal tariffs within 90 days [1][2] - Despite the positive news, A-shares did not experience significant gains, possibly due to the already repaired market conditions and macroeconomic status [1][3] Economic Conditions - China's economy is currently in a weak recovery phase, necessitating a cautious approach to investment direction [3][4] - The high tariffs previously imposed acted like a "trade ban," and while the recent tariff reductions are a positive step, they do not signify the end of the trade war [3] Sector Performance - The securities sector led the A-share market, with the Securities ETF rising by 3.48% and trading volume exceeding 3.8 billion yuan [9][11] - In Q1 2025, 42 listed securities firms reported a total revenue of 125.93 billion yuan, a year-on-year increase of 24.6%, and a net profit of 52.18 billion yuan, up 83.48% [11] - The financial technology sector is expected to benefit from recent policies aimed at stabilizing the market and encouraging long-term investments [13] Investment Recommendations - Investors are advised to focus on sectors such as midstream manufacturing, home appliances, robotics, and AI, which have shown promising performance [6][7] - The current valuation of the securities sector presents an opportunity for investors to capitalize on potential earnings recovery [15]

Core Insights - Terex's international operations are crucial for understanding its financial strength and growth potential, especially given the interconnected global economy [2][3] - The company's total revenue for the quarter ending March 2025 was $1.23 billion, reflecting a year-over-year decline of 4.9% [4] International Revenue Breakdown - Western Europe generated $162 million in revenue, accounting for 13.18% of total revenue, which was a significant miss of -33.91% compared to the projected $245.13 million [5] - Asia-Pacific contributed $102 million, representing 8.30% of total revenue, also falling short by -24.6% against the consensus estimate of $135.27 million [6] Revenue Forecasts - For the current fiscal quarter, total revenue is projected to reach $1.46 billion, an increase of 5.5% from the same quarter last year, with Western Europe expected to contribute 16.5% ($240.62 million) and Asia-Pacific 12.2% ($178.16 million) [7] - For the full year, total revenue is anticipated to be $5.32 billion, indicating a rise of 3.7% from the previous year, with Western Europe at 14.9% ($794.87 million) and Asia-Pacific at 11.8% ($629.27 million) [8] Market Context - The reliance on international markets presents both opportunities and risks, making it essential to monitor international revenue trends for forecasting the company's prospects [9] - Analysts are increasingly focused on international developments and their impact on earnings estimations, influenced by local market conditions [10]