Investment Rating - The report maintains a "Buy" rating for companies in the engineering machinery and forklift sectors, emphasizing undervalued growth potential [1]. Core Insights - The report highlights the strong performance of NVIDIA in FY26Q3, with revenue reaching $57.01 billion, a year-on-year increase of 62.5%, and a quarter-on-quarter increase of 22.0%, indicating robust demand in the AI equipment sector [2][3]. - The engineering machinery sector is expected to see a recovery in demand, with domestic excavator sales projected to grow at an annual rate of over 30% from 2025 to 2028, despite current funding challenges affecting sales conversion [4]. - The forklift industry shows a positive trend with October sales reaching 114,000 units, a year-on-year increase of 16%, driven by low domestic demand baselines and recovering overseas demand [4]. Summary by Sections Recommended Companies - The report recommends a focus on companies such as Northern Huachuang, Sany Heavy Industry, and others in the engineering machinery and AI equipment sectors [1][14]. AI Equipment - NVIDIA's strategic partnerships with OpenAI and other tech giants are expected to enhance AI infrastructure, with significant revenue growth anticipated in the upcoming quarters [3]. - Recommendations for AI equipment include Dazhu CNC for PCB drilling equipment and Hongsheng for liquid cooling solutions [4]. Engineering Machinery - October data shows a significant improvement in domestic sales of various machinery types, with excavator sales expected to peak at 250,000 units by 2028 [4]. - Key companies recommended in this sector include Sany Heavy Industry, XCMG, and others [4]. Forklift Industry - The forklift sector is experiencing steady growth, with a notable increase in both domestic and export sales, indicating a recovery in demand [4]. - Recommended companies include Hangcha Group and Anhui Heli [4]. Lithium Battery Equipment - The report anticipates a 40% growth in energy storage demand from 2025 to 2026, driven by the increasing penetration of new energy vehicles and AI data centers [4]. - Key recommendations include suppliers like Xian Dao Intelligent and Hangke Technology [4]. General Market Trends - The overall machinery industry is expected to benefit from a recovery in fixed asset investment and a rebound in demand across various sectors, including construction and logistics [4].

Group 1 - The stock of Diwei fell by 5.06% on November 18, trading at 37.50 CNY per share, with a total market capitalization of 7.3 billion CNY [1] - Diwei is located in Nanjing, Jiangsu Province, and specializes in the research, production, and sales of oil and gas equipment components [1] Group 2 - Tianhong Fund holds a significant position in Diwei, with its Tianhong Selected Mixed A Fund maintaining 1 million shares, representing 4.9% of the fund's net value [2] - The Tianhong Selected Mixed A Fund has a total scale of 544 million CNY and has achieved a year-to-date return of 24.26% [2] - The fund manager, Jia Teng, has been in charge for 6 years and 273 days, with the best return during his tenure being 42.86% [2]

Core Viewpoint - The report from Guosen Securities highlights that the AI wave and energy transformation are creating opportunities for industrial upgrades, particularly supported by the midstream machinery sector [1] Group 1: Demand Side Opportunities - Emerging market growth is primarily driven by AI infrastructure, including liquid cooling, gas turbines, and refrigeration industries, as well as humanoid robots and other trends like unmanned automation and intelligent welding robots [1] - Export growth is focused on globally competitive sectors such as engineering machinery, oil and gas equipment, injection molding machines, and tire molds, with additional attention on commercial catering equipment and hand/electric tools [1] Group 2: Supply Side Opportunities - Significant import substitution potential exists in sectors like scientific instruments, X-ray detection equipment, and semiconductor components [2] - Stock updates are emphasized for industry leaders in injection molding machines, testing services, and laser control systems, particularly those benefiting from a unified market and anti-involution trends in photovoltaic and lithium battery equipment [2]

Investment Rating - The report maintains an "Overweight" rating for the mechanical equipment industry [1] Core Views - The report is optimistic about the acceleration of downstream capacity expansion and the solid-state catalytic lithium battery equipment, continuing to recommend AI equipment such as gas turbines and liquid cooling devices [1] - Solid-state battery technology is advancing towards commercialization, benefiting equipment manufacturers as major manufacturers are expected to open equipment tenders for pilot lines [1] - The demand for gas turbines is expected to rise due to the expansion of AI data centers, with domestic manufacturers likely to benefit from this trend [2] - Liquid cooling technology is becoming essential for data centers, with significant growth expected in the market for liquid cooling solutions [3] Summary by Sections Recommended Companies - The report suggests a focus on companies such as Northern Huachuang, SANY Heavy Industry, and others in various sectors including semiconductor equipment, engineering machinery, and lithium battery equipment [1][13] Investment Highlights - **Lithium Battery Equipment**: The solid-state battery is moving towards mass production, creating new demand for equipment across all stages of production [1] - **Gas Turbines**: The demand for gas turbines is driven by the need for reliable power sources for AI data centers, with significant opportunities for domestic brands like Jereh and Haomai Technology [2] - **Liquid Cooling Equipment**: The report highlights the rapid growth in AI computing capital expenditures, with liquid cooling technology being crucial for managing heat in data centers [3] Industry Trends - The report notes a significant increase in the shipment of AI server racks, with expectations of continued high growth in the coming years [3] - The liquid cooling market is projected to expand significantly, driven by the need for energy-efficient cooling solutions in data centers [3] Financial Projections - The report provides financial forecasts for companies in the sector, indicating expected growth in net profits for various firms over the next few years [19][43]

Core Viewpoint - ShenKong Co., Ltd. (002278.SZ) experienced significant stock price volatility, opening at a limit down but closing at a limit up, marking a 70% increase over six trading days, reaching a nearly eight-year high [2] Group 1: Company Performance - As of the close, the stock price was 15.88 yuan per share, with a trading volume of 28.20 million yuan and a turnover rate exceeding 57% [2] - The company reported that its overseas revenue proportion reached 33.58% in the first half of 2025, a 107.20% increase year-on-year, with ongoing optimization of overseas gross profit margins [2] - In the third quarter, the company reported a net profit attributable to shareholders of 239.94 thousand yuan, a decline of over 75% year-on-year, primarily due to long payment terms with major clients [3] Group 2: Market and Business Environment - ShenKong has been actively involved in the Russian market, facing challenges due to international financial settlement issues, but remains focused on commercial opportunities while ensuring asset safety [2] - The company has successfully entered over 50 countries and regions, benefiting from national policies that have increased commercial opportunities in key overseas oil and gas markets [2] - The recent surge in the commercial aerospace sector has also positively impacted ShenKong, as it has invested in HanQing Power, which specializes in hydrogen energy and commercial aerospace [3]

Core Viewpoint - The company has faced challenges in its operations in the Russian market due to international financial settlement issues, despite having a strong reputation for its oil and gas exploration and development equipment in the region [1] Group 1: Company Operations - The Russian market is one of the earliest overseas markets that the company has expanded into [1] - The company has a good reputation for its various oil and gas exploration and development equipment in Russia [1] Group 2: Market Challenges - Recent international financial settlement issues have hindered the company's business operations in Russia [1] - The company remains vigilant regarding local business opportunities and non-commercial factors affecting its operations [1] Group 3: Strategic Approach - The company is committed to ensuring the safety of its assets while adapting its trade activities with Russia according to changing circumstances [1]

Macro Strategy - The "Innovation Bull" market is entering a consolidation phase, driven by a positive cycle of capital pricing and industrial implementation under policy guidance [1][13] - Current macro policies are still being implemented, and the "KOT" valuation system is gradually improving, with medium to long-term funds expected to enter the market annually [1][13] - Market liquidity and valuations have improved, with public fund net values exceeding 1, indicating potential for accelerated fund issuance [1][13] - The market is likely to extend towards technology sectors such as computing power, chips, robotics, and energy storage as the "Innovation Bull" evolves into a comprehensive bull market [1][13] Fixed Income - The report discusses how to identify arbitrage opportunities in the Sci-Tech Bond ETF component bonds, focusing on bonds with an implied rating of AA+ or higher and smaller issuance sizes [2][14] - The report emphasizes the importance of liquidity and credit quality in selecting bonds for inclusion in the ETF, with a preference for bonds issued by central state-owned enterprises [2][14] - The report highlights the potential for price appreciation of bonds that are included in the ETF due to passive fund inflows [2][15] Industry Analysis - The report identifies the "brain" as a key component in the development of embodied intelligence, with various companies exploring different technological paths [4][16] - The embodied intelligence market is expected to grow rapidly, with significant investment in brain technology, which is seen as the most critical and challenging aspect of the market [4][16] - Key players in the market include companies like 品茗科技, 银河通用, and Tesla, among others, with a recommendation to focus on these related stocks [4][16] Company Recommendations - 派能科技 (688063) is projected to recover from impairment and exchange rate impacts, with expected net profits of 1.0/5.0/7.2 billion yuan for 2025-2027, reflecting significant growth [5][17] - 巨子生物 (02367.HK) has received approval for its first type I recombinant collagen product, which is expected to drive growth in the medical beauty sector, with projected net profits of 25.66/32.14/40.46 billion yuan for 2025-2027 [6][18] - 联合动力 (301656) reported a slight decline in net profit but maintains a positive long-term outlook, with expected net profits of 11.3/16.8/25.8 billion yuan for 2025-2027 [7][21] - 杰瑞股份 (002353) continues to show growth potential with projected net profits of 30/35/40 billion yuan for 2025-2027, despite short-term delivery challenges [8][22]

Core Viewpoint - Shandong Molong (00568.HK) experienced a significant increase in stock price, with a rise of over 9% in the afternoon session on October 17, 2023, and reached a limit up in A-shares [1] Summary by Category - **Stock Performance** - The stock price of Shandong Molong rose by 7.11%, reaching 4.37 HKD per share [1] - The trading volume amounted to 618 million HKD [1]

Core Points - The three major US stock indices closed higher, with the Dow Jones up 0.17%, the Nasdaq up 0.39%, and the S&P 500 up 0.06% [1] - Large technology stocks showed mixed performance, with Meta and Broadcom rising over 1%, while Tesla fell over 5% [1] - Cryptocurrency and semiconductor equipment sectors saw significant gains, with Circle up over 16%, Coinbase up over 7%, KLA Corporation up over 3%, and ASML up over 2% [1] - The automotive manufacturing and oil & gas equipment sectors experienced notable declines, with Occidental Petroleum and Rivian both down over 7%, General Motors down over 3%, and ConocoPhillips down over 2% [1]

Market Performance - The three major US stock indices reached new closing highs, with the Dow Jones up 0.17% at 46,519.72 points, the Nasdaq up 0.39% at 22,844.05 points, and the S&P 500 up 0.06% at 6,715.35 points [1][3][2] Individual Stocks - Tesla's stock fell over 5%, resulting in a market value loss of more than $75 billion, closing at $436 per share despite record delivery and production numbers [5][6] - Other notable movements included Meta and Broadcom rising over 1%, while Circle surged over 16% and Coinbase increased over 7% [5] Chinese Stocks - The Nasdaq Golden Dragon China Index rose by 1.06%, with most popular Chinese stocks experiencing gains, including Century Internet up over 4%, Alibaba, NIO, and Kingsoft up over 3% [8][1] Commodity Prices - International gold prices continued to rise, with London spot gold nearing $3,900 per ounce and COMEX gold futures surpassing $3,923 per ounce [12][10] - Goldman Sachs highlighted gold's appeal as a hedge against economic slowdown and market uncertainties, predicting further price increases due to strong interest from private investors [15]