Investment Rating - The report maintains a positive outlook on the drone development driven by policies and recommends high-quality export chain targets in the machinery industry [2][4]. Core Insights - The report highlights the growth of the low-altitude economy, particularly through the application of drones in agriculture, which is expected to enhance the development of this sector [3][19]. - The machinery sector is anticipated to see a rebound in the second quarter, with strong resilience in both domestic sales and exports, particularly in the engineering machinery segment [3][4]. Weekly Market Review - From June 1 to June 6, 2025, the Shanghai Composite Index rose by 1.13%, while the ShenZhen Component Index increased by 1.42%, and the ChiNext Index saw a rise of 2.32%. The machinery equipment sector increased by 0.93%, outperforming the CSI 300 Index by 0.05 percentage points, ranking 19th among 31 sectors [11][13]. - Within the machinery sub-sectors, general equipment and automation equipment saw increases of 1.29% and 1.41%, respectively, while engineering machinery experienced a decline of 0.64% [11][14]. Key Sector Tracking - The low-altitude economy is supported by government initiatives, including the use of drones for agricultural surveys, which is expected to open new application areas [3][19]. - The machinery equipment sector is advised to focus on companies with strong overseas production capabilities and diversified customer bases, especially in light of expected improvements in exports to the U.S. [3][4]. Investment Recommendations - For the low-altitude economy, recommended companies include ShenChengJiao, SuJiaoKe, and WanFengAoWei among others [4]. - In the machinery equipment sector, suggested companies include Sany Heavy Industry, XCMG, and Anhui Heli for engineering machinery, and companies like Giant Star Technology and QuanFeng Holdings for the export chain [4].