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].

Investment Rating - The report maintains an "Overweight" rating for the machinery equipment industry, particularly focusing on the export-oriented segments such as construction machinery, aerial work platforms, and oil service equipment [1]. Core Insights - The report highlights the positive impact of the recent US-China trade agreement, which significantly reduces tariffs on Chinese exports to the US, providing a favorable environment for machinery exporters [1][15]. - It emphasizes the strong growth potential in the engineering machinery sector, with a notable increase in excavator exports and a focus on digitalization and innovation in product offerings [2]. - The report identifies key investment opportunities in various segments, including humanoid robots, general automation, and injection molding machines, suggesting specific companies to watch [3][25][22]. Summary by Sections Recommended Portfolio - The report lists a recommended portfolio of companies across various sectors, including Northern Huachuang, Sany Heavy Industry, and Zhejiang Dingli, among others [1][13]. Recent Reports - Recent analyses focus on the implications of the US-China trade agreement, the performance of the engineering machinery sector, and the outlook for injection molding machines and general automation [15][22][3]. Key Industry News - The report notes the successful conclusion of the Changsha International Construction Machinery Exhibition, where over 13 billion yuan in annual procurement agreements were signed, indicating robust demand in the sector [2]. - It also highlights the increasing focus on electric and intelligent machinery, showcasing China's technological advancements in the engineering machinery industry [2]. High-Frequency Data Tracking - The report provides insights into manufacturing PMI and fixed asset investment trends, indicating a mixed outlook for the machinery equipment sector [11][12]. Company News Announcements - Specific company announcements include strategic partnerships and product launches that align with the industry's shift towards digitalization and automation [2][15]. General Automation Insights - The general automation sector is expected to see a revenue increase of 6% in 2024, with specific companies like Yihua and Huichuan Technology highlighted for their growth potential [3][22]. Humanoid Robot Sector - The humanoid robot industry is entering a golden development period, with a focus on dexterous hands and lightweight materials, suggesting investment opportunities in related technologies [25][26]. Injection Molding Machine Market - The injection molding machine market is projected to grow significantly, with leading companies like Haitian International and Yizumi showing strong revenue growth [22]. Machine Tool and Tooling Industry - The machine tool and tooling industry is expected to benefit from domestic demand and export opportunities, with a projected revenue increase of 10% in 2024 [23][24]. Detection Services Sector - The detection services sector is anticipated to stabilize, with leading companies like Huace Testing and Guangdian Measurement showing resilience amid economic fluctuations [28][30]. Diesel Generator Set Industry - The diesel generator set market is poised for growth due to increased capital expenditure in data centers, with domestic brands gaining market share [41][44]. Collaborative Robots - The collaborative robot sector is experiencing steady growth, with companies like Yuejiang Technology leading the market with innovative products [46][47].