Summary of Conference Call on China Industrials Industry Overview - **Sector**: China Industrials - **Outlook**: Bullish on China Industrials driven by AI theme tailwinds, high-end equipment localization, and overseas expansion [1][6] Key Insights Automation and General Machinery - **Growth Forecast**: Expected sequential growth recovery for the automation market in 2026-27 at +3-4% year-on-year [2] - **Drivers**: 1. Replacement demand due to rapid technology iteration 2. New capex demand from AI applications (e.g., intelligent robots, PCB equipment, AI wearables) 3. Enhanced competitiveness of advanced equipment manufacturers globally - **Preferred Stocks**: Inovance for localization story; Geekplus for AMR/robotics solutions in warehouses [2] Intelligent/Humanoid Robots - **Adoption Trend**: Gradual ramp-up in adoption expected, benefiting suppliers and integrators [3] - **Preferred Stocks**: Leaderdrive, Hengli, Inovance, Shuanghuan for mass production advantages despite humanoid products still in development [3] Heavy Industry 1. **Construction Machinery**: Entering an improvement cycle with domestic recovery and overseas demand; preferred stocks include Sany Heavy and Jiangsu Hengli [4] 2. **Heavy-Duty Truck Sales**: Expected ~10% year-on-year decline in 2026 to ~1 million units, impacted by domestic market conditions (-15% year-on-year) and NEV purchase tax hike [4] 3. **Railway Equipment**: Anticipated slowdown in MU tenders to <200 sets, leading to slower net profit growth for CRRC and Times Electric [4] New Energy Equipment - **Demand Forecast**: Lithium-ion battery (LiB) equipment demand projected to increase by 24% in 2026 and 21% in 2027, reaching historical cyclical highs [5] - **Preferred Stock**: Wuxi Lead - **Outlook for Solar Equipment**: Negative outlook for 2026 due to lack of solar capacity turnaround; non-solar order growth and potential new capacity from space solar already priced in [5] Stock Ratings and Price Targets - **Overweight Stocks**: Geekplus, Sany Heavy, Leaderdrive, Han's Laser, Inovance, Hengli, Wuxi Lead, Envicool, among others [11] - **Price Target Changes**: - Times Electric: Target reduced from HKD 44.0 to 41.1 (-5%) - CRRC-H: Target reduced from HKD 6.4 to 6.1 (-17%) - Leaderdrive: Target increased from CNY 153.0 to 216.4 (+24%) [10] Additional Insights - **Market Cap and Trading Volume**: Various companies listed with significant market caps and average daily trading volumes, indicating active trading interest [11] - **Analyst Ratings**: Majority of stocks rated as Buy/Overweight, indicating positive sentiment among analysts [10][11] Conclusion - The China Industrials sector is poised for growth, particularly in automation, heavy machinery, and new energy equipment, with specific companies highlighted as key investment opportunities. The overall sentiment remains optimistic, supported by technological advancements and market recovery trends.

Core Insights - U.S. technology company Palantir has secured a significant contract to provide additional software solutions to HD Hyundai, enhancing its presence in the heavy industry sector in South Korea [1] Group 1 - Palantir is expanding its operations in South Korea by increasing its software sales to HD Hyundai [1]

AI Leadership & Competition - The US potentially leads in AI development due to advanced chips from Nvidia, but China possesses significant electrical power resources [2] - China's mature chips may provide an advantage in handling the processing power required for continuous AI queries [4][5] - China's manufacturing capacity offers strategically valuable training data for AI development, contrasting with the US focus on consulting and healthcare [6][7] Infrastructure & Resources - A potential US constraint in AI development is the limited availability of electrical power [3] - China has organized itself to prioritize heavy industry, ensuring resources for AI infrastructure [4] Chip Technology - China's AI chips are considered at best the fourth best, posing a substantial constraint [3] - Mature chips are going to be necessary for inference [4]

Industry Overview - Poland's south, the center of coal mines and heavy industry, is undergoing changes [1]

So this is what I want to you to picture. So this is is early morning 5 or 6 am I have in my car back in the dark outside in the factory over there I was trying to press bum milk after se month of matinity leave after 15 minutes I will try to sneak in in the board of room meeting with own mouth and trying to answering on the engineer blue spring and no one in that room like why why did why should they know But I was over there trying to fit my kids but try to fix a solution on the CNC machine that goes fail ...

Group 1 - Thyssenkrupp's marine systems business is experiencing growth due to a favorable defense outlook, contributing to its value perspective [2] - The strong balance sheet of Thyssenkrupp enhances the residual value of the company, making it an attractive investment opportunity [2] - The Value Lab focuses on long-only value investment ideas, targeting a portfolio yield of approximately 4% and has seen success over the past five years [1] Group 2 - The Valkyrie Trading Society consists of analysts who share high conviction investment ideas that are expected to yield non-correlated and outsized returns in the current economic environment [3]