Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies [3]. Core Insights - The mechanical equipment sector has shown a strong performance, with the SW Mechanical Equipment Index rising by 25.65% year-to-date, outperforming the Shanghai Composite Index [3][14]. - There is a sustained focus on investment opportunities in robotics, particularly as VLA models develop, allowing robots to operate in simple scenarios and learn quickly [5][22]. - Global demand for gas turbines is increasing, with significant order growth for companies like Yingliu Co., which has seen a 35.56% year-on-year increase in new gas turbine orders [5][59]. - The nuclear fusion power supply sector is approaching tendering opportunities, with a focus on suppliers with proven fusion orders [5][23]. Summary by Sections Market Review - The SW Mechanical Equipment Index increased by 3.21% in the week of August 11-15, 2025, ranking 8th among 31 primary industry categories [3][13]. - Year-to-date, the index has risen by 25.65%, ranking 3rd among the same categories [14]. Key Data Tracking General Machinery - The PMI for manufacturing was at 49.3% in July, indicating continued pressure in the general machinery sector [24]. - Forklift sales in July reached 118,605 units, a year-on-year increase of 14.4% [24]. Engineering Machinery - Excavator sales totaled 17,138 units in July, a year-on-year increase of 25.2%, with domestic sales up by 17.2% [35]. Railway Equipment - The railway equipment sector has shown steady growth, with fixed asset investment maintaining around 6% growth [46]. Shipbuilding - The shipbuilding sector is experiencing a slowdown, with the global new ship price index at 186.65, indicating a deceleration in price decline [47]. Oilfield Equipment - The oilfield equipment sector is stabilizing at the bottom, with global rig counts improving for two consecutive months [48]. Industrial Gases - The industrial gas sector is expected to perform well in Q3 due to previous maintenance activities impacting gas prices positively [57]. Gas Turbines - The gas turbine sector is experiencing robust growth, with GEV's new gas turbine orders reaching 12.2 GW in the first half of 2025, a 35.6% increase year-on-year [59][60]. Industry Dynamics - The report highlights various industry developments, including successful project deliveries and new product launches in the robotics sector, indicating a vibrant market environment [62][63].

Group 1 - The core component of fusion devices is the fusion power supply, which enhances the fusion "triple product" by optimizing heating temperature and energy confinement time, thus promoting fusion ignition [1][2] - The overall technical and customer barriers for power supply are high, with power supply costs accounting for 30%-50% of the total device cost [1][5] - The investment climate for fusion in China is improving, and the demand for fusion power supply is expected to be fully released as multiple technical routes progress simultaneously [1][5] Group 2 - The power supply plays a crucial role in assisting plasma heating and controlling plasma position, with strict requirements for precision to avoid electromagnetic radiation hazards [2][3] - Different fusion routes, such as linear, Z-pinch, and stellarator, have stringent requirements for power supply, with costs for linear devices reaching about 50% and Z-pinch devices around 30% of total costs [4][5] - Domestic capabilities for core components of power supplies have been established, reducing reliance on imports for critical components like electron tubes [3][5] Group 3 - Recommended stocks include Aikesaibo (688719.SH), with attention to Yingjie Electric (300820.SZ), Guoguang Electric (688776.SH), Xuguang Electronics (600353.SH), Hongxun Technology (603015.SH), and Wangzi New Materials (002735.SZ) [6]