Core Viewpoint - Shudao Equipment is establishing a gas industry equity investment fund with a total scale of 2 billion yuan, focusing on LNG, industrial gases, and hydrogen energy sectors, which will enhance its investment and strategic layout capabilities [1][2]. Group 1: Fund Establishment - The fund will be jointly established with Shudao Fund Management Co., Ltd. and Shudao Equity Investment Fund Co., Ltd. [1] - The fund's total scale is set at 2 billion yuan, with all contributors being entities controlled by Shudao Investment Group [1]. - The fund will invest in sub-funds or direct equity investments in LNG, industrial gases (including specialty gases and electronic gases), and hydrogen energy [1]. Group 2: Fund Structure and Returns - The fund will follow a principle of "priority guaranteed fixed income, subordinate enjoying excess returns" during its 8-year duration (4 years for investment and 4 years for exit) [1]. - The minimum return rate is set at a simple annualized rate of 6%, with 90% of excess returns allocated to limited partners (LPs), distributed in a 4:6 ratio between priority and subordinate LPs [1]. Group 3: Company Performance and Strategy - Shudao Equipment has a complete core technology system in gas liquefaction and separation, with applications in various fields such as nuclear reactors, semiconductor manufacturing, and clean energy [2]. - The company is enhancing its "1+3" industrial layout, focusing on deep-cooling technology manufacturing while developing transportation equipment, gas investment operations, and clean energy investment operations [2]. - In the first half of this year, the company's gross profit margin significantly increased to 27.76%, marking a three-year high, and the net profit attributable to the parent company reached its highest level since 2017, indicating improved profitability [2].

Investment Rating - The industry investment rating is "Positive" [7] Core Viewpoints - The report emphasizes the need to focus on advanced technology and companies with safety margins due to escalating trade risks [2][15] - The report highlights the recovery in the engineering machinery sector and suggests that companies like Hengli Hydraulic and Yizhiming are well-positioned to benefit from this trend [3][4][16] - The report notes that the geopolitical risks, particularly related to U.S. tariffs on Chinese imports, necessitate attention to companies with overseas production capabilities [15][16] Summary by Relevant Sections 1. Key Companies - **Hengli Hydraulic**: As a leading player in the domestic transmission sector, it is expected to benefit from the recovery in engineering machinery. The company has completed the construction of its linear actuator project and has begun small-scale production, with a focus on increasing investment in the ball screw sector for sustained growth [3][16] - **Yizhiming**: This company, a leader in injection molding and die-casting machines, is optimizing its competitive capabilities through continuous domestic and international expansion. It is anticipated that the macroeconomic recovery will support ongoing industry demand [4][17] - **Fosda**: Specializing in deep-cooling technology equipment, Fosda is projected to achieve a net profit of 258-295 million yuan in 2024, reflecting a year-on-year growth of 34.97%-54.33%. The company has a robust order book and is expected to enhance its profitability through increased overseas business [5][18] - **Sande Technology**: The company is focusing on instrument equipment and unmanned intelligent equipment, with an expected net profit of 138-152 million yuan in 2024, indicating a significant year-on-year growth of 156.81%-182.86% [8][19] - **Jiaocheng Ultrasonic**: This company is concentrating on ultrasonic equipment and solutions, with projected revenue of 580 million yuan in 2024, a year-on-year increase of 11.03% [9][20] 2. Market Trends - The report indicates that the engineering machinery sector is experiencing a recovery, with excavator sales in March 2025 reaching 29,590 units, a year-on-year increase of 18.5% [59] - The manufacturing PMI for March 2025 is reported at 50.5%, indicating a continued recovery in the manufacturing sector [29] - The report highlights the increasing demand for industrial robots, with a cumulative production of 91,088 units in the first two months of 2025, reflecting a year-on-year growth of 27.0% [51] 3. Recommendations - The report suggests focusing on key sectors such as engineering machinery (e.g., Sany Heavy Industry, LiuGong, XCMG) and humanoid robots (e.g., Hengli Hydraulic, Yizhiming) [16] - It also recommends monitoring companies with independent growth logic and strong fundamentals, such as Hengli Hydraulic and Sande Technology [16]