Investment Rating - The report maintains an "Outperform" rating for the industry [4][9]. Core Views - The humanoid robot industry is experiencing rapid development, highlighted by the first global humanoid robot competition, showcasing advancements in technology and efficiency [3][16]. - AI infrastructure is projected to see significant investment, with OpenAI planning to invest trillions in AI infrastructure development [4][18]. - The report emphasizes the importance of domestic production and localization in various sectors, particularly in electronic measurement instruments and low-altitude economy [4][7]. Industry Dynamics - Humanoid Robots: Key developments include the launch of the VLA model G0 by Xinghai Tu, a significant order received by Zhiyuan Robotics, and advancements in robot capabilities such as the Neo Gamma's 45-pound load capacity [1][2][21]. - Brain-Computer Interface: A breakthrough in decoding "inner speech" with a 74% accuracy rate has been achieved [26]. - Low-altitude Economy: Shanghai plans to establish a low-altitude industry fund to support development [27][29]. Company Dynamics - Zhiyuan Robotics has made strategic investments and secured significant orders, indicating strong market positioning [2][20]. - Companies like Songlin Technology and Rongtai Health are forming strategic partnerships to enhance their service offerings in the robotics sector [31][32]. Important Events Preview - Zhiyuan Robotics will launch its full product line on August 18, 2025, and hold a supplier conference on August 21, 2025 [2][33]. Key Company Profit Forecasts and Valuations - Several companies in the humanoid robot and AI infrastructure sectors are rated as "Outperform," with projected earnings per share (EPS) growth and favorable price-to-earnings (PE) ratios [9][35].

Group 1: Humanoid Robots and AI Solutions - UBTECH announced the launch of a commercial humanoid robot solution centered around the Walker C robot, integrating advanced AI models and navigation algorithms for applications in exhibitions, supermarkets, and transportation hubs [2] - The emergence of AI companies like DeepSeek is driving the development of general-purpose humanoid robot models, indicating a strong trend towards industrial applications of humanoid robots [2] - The humanoid robot industry is entering a phase of rapid development, with commercial applications becoming increasingly viable, suggesting potential investment opportunities in domestic component manufacturers [2] Group 2: AI Infrastructure Investments - Major tech companies such as Amazon, Microsoft, Oracle, and Meta are making significant investments in AI infrastructure, with total investments reaching up to tens of billions of dollars [3] - The demand for digital infrastructure driven by AI is leading to a sustained increase in global data center capacity, with the domestic computing power sector expected to recover due to policy support and technological upgrades [3] - The long-term growth of AI-driven infrastructure is anticipated, with opportunities arising from technological upgrades and domestic replacements in sectors like optical modules, switches, and cooling systems [3] Group 3: Robotics and AI Market Potential - Google DeepMind introduced the Gemini Robotics On-Device model, which can run locally on robotic devices, enhancing their adaptability to new tasks without needing constant internet connectivity [4] - The competition among major tech firms in the field of embodied intelligence is expected to unlock a trillion-dollar market, as robots transition into the embodied intelligence era [5] - The intersection of humanoid robots and AI represents a critical point in technological advancement, with significant breakthroughs anticipated in application, cost, and software development [5] Group 4: Tungsten Market Dynamics - The strategic value of tungsten is increasing, with supply-demand tightness expected to persist, leading to a bullish market trend and potential price increases [6] - Tungsten is essential in high-end manufacturing and is considered a strategic resource in China, with strict controls on its mining [6] - The global tungsten supply is projected to grow at a CAGR of 2.57% from 2023 to 2028, while demand is expected to rise due to emerging industries like photovoltaics and robotics [6]

Industry Dynamics - The humanoid robot sector is experiencing significant developments, with various companies announcing new projects and partnerships, including Midea's successful deployment of its self-developed humanoid robot in factories and the release of the Star Motion Q5 intelligent robot [1] - The 3D printing equipment production in May saw a year-on-year increase of 40% [1] Government News - The China Securities Regulatory Commission (CSRC) announced support for companies in cutting-edge technology sectors to apply the fifth set of listing standards on the Sci-Tech Innovation Board [2] - Several strategic partnerships were formed in the humanoid robot sector, including Demar Technology's agreement with Zhiyuan Robotics and Qinan Co.'s investment in Moxian Technology [2] Key Focus Stocks - The week highlights key stocks such as Longxi Co., Jindi Co., Yirui Technology, Yingliu Co., and Dingyang Technology [3] Investment Insights 1. Humanoid Robots: Focus on value and positioning, emphasizing suppliers with strong capabilities and identifying incremental opportunities in the market, particularly in components like joint modules, dexterous hands, reducers, and motors [4] 2. AI Infrastructure: Continued growth in capital expenditure for data centers driven by AI demand, with key beneficiaries including Hanzhong Precision, Ice Wheel Environment, and Yingliu Co. [4] 3. Low-altitude Economy: Rapid advancements in the low-altitude economy, with a focus on core components such as engines and motors, highlighting companies like Yingliu Co. and Zongshen Power [5] 4. 3D Printing: As an additive manufacturing technology, 3D printing is expected to open market opportunities across various sectors, with key players including Bolite and Huazhou High-Tech [5] 5. Nuclear Fusion: Progress in nuclear fusion energy is seen as a long-term direction for energy transformation, with companies like Yingliu Co. and Jiangsu Shentong being highlighted [5]

Investment Rating - The report maintains an "Outperform the Market" rating for the mechanical equipment industry [4][30]. Core Views - The humanoid robot sector is highlighted for its growth potential, with a focus on key suppliers and companies with strong market positions. Specific components such as joint modules, dexterous hands, and reducers are identified as critical areas for investment [2][3]. - AI infrastructure is expected to see continued capital expenditure growth driven by demand for data centers, benefiting companies involved in gas turbines and chillers [2]. - The low-altitude economy is progressing rapidly, with a national low-altitude traffic project initiated to standardize air traffic management [3]. - The smart welding robot market is projected to grow significantly, particularly in the steel structure industry, with a market potential nearing 100 billion [3]. - 3D printing technology is gaining traction in various sectors, including aerospace and consumer electronics, due to its advantages in creating complex structures and reducing development cycles [3]. - X-ray detection equipment is experiencing rapid growth driven by demand in healthcare and industrial sectors, with a focus on domestic production of core components [3]. Summary by Sections Industry Dynamics - Recent developments include the introduction of various humanoid robots and AI infrastructure projects, such as the opening of a new data center by Alibaba Cloud in South Korea [1][19]. - The report notes significant growth in 3D printing equipment production, with a year-on-year increase of 40% in May [20]. Government News - The China Securities Regulatory Commission supports the application of the fifth set of listing standards for companies in cutting-edge technology sectors, including AI and low-altitude economy [21]. Company Developments - Notable partnerships and investments include Demar Technology's strategic agreement with Zhiyuan Robotics and Qinan Co., Ltd.'s investment in Moxian Technology [23][24]. - Midea's humanoid robot has successfully begun operations in its factories, marking a significant step in automation [16]. - The launch of the Star Motion Q5 intelligent robot showcases advancements in flexible joint technology and AI control systems [18]. Key Company Earnings Forecast and Valuation - Several companies are rated as "Outperform the Market," including Green's Harmonics, Huichuan Technology, and Zhaowei Electric, with projected earnings per share (EPS) growth for 2024 and 2025 [7][28].

Macro and Strategy - The core CPI in China is expected to turn positive in June, driven by service prices in May, while the PPI continues to show a significant decline [9][10] - China's exports showed resilience with a 4.8% year-on-year increase in May, while imports fell by 3.4%, resulting in a trade surplus of $103.22 billion [10] Transportation Industry - The logistics sector is seeing a reduction in costs and increased efficiency through the adoption of unmanned logistics vehicles, particularly in the last mile of delivery [10][12] - The shipping industry is experiencing a rebound in freight rates due to increased demand from U.S. companies resuming supply chains, leading to a significant supply-demand gap [10][12] - The aviation sector is entering a low season, with domestic passenger flights seeing a decrease, but there is potential for price stabilization in 2025 due to ongoing demand optimization policies [11][12] Public Utilities and Environmental Protection - The National Energy Administration is initiating pilot projects for new power systems, focusing on innovative technologies and models [15][16] - In April 2025, China exported 228,148 tons of industrial-grade mixed oil (UCO), a 7.46% increase year-on-year, with an average export price of $1,069.34 per ton, up 21.01% year-on-year [15][16] Mechanical Industry - The humanoid robot sector is gaining traction, with strong orders from TSMC and the official launch of the Tian Gong Robot 2.0 [10][18] - The AI infrastructure is expected to drive continued growth in capital expenditure for data centers, benefiting companies involved in gas turbines and chillers [19] Home Appliances - The demand for kitchen small appliances is accelerating, with significant growth observed during the 618 shopping festival [21][22] - The domestic sales of major home appliance categories showed positive growth in April, with air conditioners and washing machines leading the way [22][23] Food and Beverage - The white liquor sector is facing continued pressure during the off-season, while beer and beverage categories are entering a peak demand period [33][34] - High-end liquor prices have slightly decreased, with companies like Kweichow Moutai and Luzhou Laojiao adjusting strategies to maintain market presence [34] Media and Internet - The media sector is experiencing growth, with companies like Keling AI collaborating with NetEase Games, indicating a positive trend in AI applications and IP development [33]

Investment Rating - The report maintains an "Outperform" rating for the industry [5][9][32] Core Views - The humanoid robot sector is experiencing strong order growth, particularly from TSMC, which is expected to contribute significantly to revenue this year [2][17] - The report emphasizes the importance of supply chain positioning and the identification of key players in the humanoid robot market, focusing on components such as joint modules, dexterous hands, and sensors [3][4] - AI infrastructure is projected to see continued capital expenditure growth driven by demand for data centers, benefiting companies involved in gas turbines and chillers [3][4] Industry Dynamics - Recent developments include the global launch of Grando's intelligent robots and the official release of the TianGong Robot 2.0, showcasing advancements in service robots [1][18] - The Beijing Humanoid Robot Innovation Center has increased its registered capital to 460 million RMB, indicating strong investment in the sector [19] - The 2025 Global AI Technology Conference was held in Hangzhou, focusing on AI technology breakthroughs and industry trends [22] Company Dynamics - Key strategic partnerships have been formed, such as the collaboration between Kepler and ZhaoFeng Electromechanical, aimed at enhancing humanoid robot applications in industrial settings [24] - Other notable partnerships include the establishment of a smart sensing laboratory by Fulei New Materials and Tsinghua University, and a strategic agreement between Yujian Technology and YaoshiBang [25][26] Key Companies and Investment Focus - The report highlights several companies for investment consideration, including Longxi Co., JinDi Co., YiRui Technology, YingLiu Co., and DingYang Technology, all of which are positioned well within the humanoid robot supply chain [3] - Specific components and companies to watch include: - Joint modules: Hengli Hydraulic, Huichuan Technology, Zhenyu Technology, and Lens Technology - Dexterous hands: Zhaowei Electromechanical, Leisai Intelligent, and Lens Technology - Reducers: Lide Harmony and JinDi Co. - Sensors: Hanwei Technology [3][4]

Group 1: Macro and Strategy - The macroeconomic data for May 2025 is expected to show stable growth momentum, with CPI forecasted at -0.4% and PPI at -3.2% [11] - The fixed income market remains active, with super long bonds experiencing a slight increase in trading volume despite trade war uncertainties [9][10] - The A-share market shows a slight decline in core broad-based valuations, with large-cap stocks experiencing a drop while small-cap stocks see some expansion [12][13] Group 2: Industry and Company Insights - The AI infrastructure sector is witnessing significant capital expenditure growth, with major companies like Alibaba planning to invest 380 billion over three years [18] - The home appliance sector is performing well ahead of the 618 shopping festival, with air conditioner production expected to increase by 29% year-on-year in June [32][34] - The education sector is experiencing a notable divergence in stock performance, with companies like China Oriental Education seeing a 139% increase, driven by strong demand in high school education [28][29] Group 3: Investment Recommendations - Investment focus should be on companies within the AI infrastructure supply chain, particularly in core segments like gas turbines and cooling systems [20][22] - In the home appliance sector, recommended stocks include Gree Electric, Midea Group, and Haier Smart Home, which are expected to benefit from the upcoming sales surge [35] - The education sector's recovery is expected to continue, with a focus on companies that have adapted well to regulatory changes and market demands [31]

Investment Rating - The report rates the AI infrastructure industry as "Outperform" compared to the market [1]. Core Insights - The demand for intelligent computing is driving the continuous growth of data centers, with power distribution and cooling being core components of AI infrastructure [3]. - Capital expenditures in the AI infrastructure sector are expected to reach hundreds of billions, with major companies like Google, Microsoft, and Amazon projected to spend $320 billion in FY2025, a 39% increase from 2024 [3][22]. - The report emphasizes the importance of power supply systems, particularly gas turbines, which are becoming the preferred primary power source for data centers due to their short construction cycles and low costs [3][60]. Summary by Sections AI Infrastructure Overview - The AI infrastructure industry is entering a prosperous cycle driven by increased demand and supportive policies [3][19]. - The global computing power scale is expected to reach approximately 910 EFLOPS by the end of 2023, with a 40% year-on-year growth [19]. Power Supply Systems - Gas turbines are expected to benefit from a long-term upcycle, with global orders projected to increase by 38% year-on-year in 2024 [3][60]. - The report highlights that gas turbines account for over 50% of the value in AI infrastructure, while cooling systems account for over 20% [3][37]. Cooling Systems - Liquid cooling is anticipated to replace air cooling as a trend in the industry, with the market for cooling systems expected to exceed 100 billion by 2028 [3][32]. - The report identifies external cooling units, such as chillers, as key beneficiaries of this transition [3]. Investment Recommendations - The report suggests focusing on segments within the supply chain that are core to the industry, have rigid supply, and are linked to major clients [3]. - Recommended companies include Yingliu Co., Haomai Technology, and Ice Wheel Environment, among others [7][8].

Investment Rating - The report maintains an "Outperform" rating for the machinery equipment industry [4] Core Views - The humanoid robot sector is experiencing significant advancements, with companies like Figure achieving a milestone by completing a 20-hour continuous operation on a production line, indicating rapid commercialization progress [2][17] - AI infrastructure is expected to see sustained capital expenditure growth driven by increasing demand for data centers, benefiting companies involved in gas turbines and chillers [3] - The low-altitude economy is advancing quickly, with a reported 74.2% increase in the value added by the smart drone manufacturing industry in April [25] Summary by Sections Industry Dynamics - Humanoid robots are gaining traction, with notable developments such as the release of TRON 1 by ZhiJi Power and the successful operation of Figure robots in industrial settings [1][15][17] - AI infrastructure investments are on the rise, with Nvidia planning a 1.4GW data center in France and Alibaba committing to a global cloud computing network [23][24] Company Dynamics - Companies like Jingye Intelligent and Xiaopeng Motors are making strides in the humanoid robot space, with Xiaopeng planning to launch humanoid robots for industrial applications by 2026 [29][30] - ZheJiang RongTai is investing 20 million yuan to establish a wholly-owned subsidiary to advance its robotics business [31] Key Companies and Investment Outlook - The report highlights key companies such as Longxi Co., JinDi Co., YiRui Technology, and YingLiu Co. as potential investment targets, emphasizing the importance of selecting suppliers with strong market positions [3] - Specific segments within the humanoid robot supply chain are identified for investment, including joint modules, dexterous hands, and sensors, with companies like HengLi Hydraulic and LeiSai Intelligent being noted for their potential [3] Market Performance - The report includes a performance review of key companies, indicating fluctuations in stock prices and market trends, with companies like Longxi Co. showing significant year-to-date growth of 164.15% [14][35]