Investment Rating - The industry investment rating is "Positive" and maintained [12] Core Viewpoints - The demand for capital goods in Europe and the US is expected to recover, driven by increased infrastructure investment and manufacturing demand, which will benefit leading manufacturers of construction machinery, high-altitude machinery, and forklifts in China [2][6][9] - In Europe, significant infrastructure investment plans have been approved, including approximately €800 billion for the "Rearmament of Europe" and a €500 billion investment plan by Germany, which are expected to boost the demand for construction-related capital goods [6] - In the US, factors such as corporate tax cuts, interest rate reduction expectations, and the return of high-end manufacturing are anticipated to improve cash flow for foreign enterprises and restore capital goods demand [7][8] Summary by Sections European Market - European infrastructure investment is set to improve, with major plans approved, leading to a recovery in construction capital goods demand [6] - The manufacturing sector in Europe shows signs of improvement, with the Eurozone manufacturing PMI reaching a 38-month high of 50.7 in August 2025, indicating a strong production growth [6] US Market - The US construction spending is nearing a turning point, with new orders for construction machinery showing a year-on-year increase of 3% in the first half of 2025 [8] - Major companies like Caterpillar and JLG have reported significant recovery in sales and orders, indicating a positive trend in the US capital goods market [8] Chinese Market - China's leading manufacturers in construction machinery, high-altitude machinery, and forklifts are expected to benefit from the recovering demand in Europe and the US, with exports to Western Europe increasing by 23.5% year-on-year in July 2025 [9] - The competitive edge of Chinese brands is improving due to product differentiation and advancements in technology, positioning them well for future growth [9]