Investment Rating - The report maintains a positive outlook on the low-altitude economy and engineering machinery sectors, suggesting a potential recovery in the engineering machinery industry in the second quarter of 2025 [5][4]. Core Insights - The low-altitude economy is rapidly developing, characterized by improved policies, technological breakthroughs, and deep industry collaboration. It is expected that 2025 will mark the year of large-scale operations in this sector [3]. - The engineering machinery sector continues to show resilience in both domestic and export markets, with leading companies reporting good growth in performance and order backlog [4]. Weekly Market Review - From May 18 to May 23, 2025, the Shanghai Composite Index fell by 0.57%, while the ShenZhen Component Index and the ChiNext Index decreased by 0.46% and 0.88%, respectively. The Shenwan Machinery Equipment Index dropped by 2.48%, underperforming the CSI 300 Index by 2.30 percentage points, ranking 30th among 31 sectors [2][11]. - Within the machinery sector, sub-sectors such as general equipment, specialized equipment, and engineering machinery experienced declines of -3.44%, -0.86%, and -2.17%, respectively [11]. Key Sector Tracking - The low-altitude economy is supported by various local governments implementing specialized policies, which are expected to enhance the development and application of this sector [3]. - The engineering machinery sector is advised to focus on companies with strong overseas production capabilities and diversified customer bases due to ongoing trade tensions [4]. Investment Recommendations - For the low-altitude economy, recommended companies include ShenZhen Urban Transport, SuJiaoKe, and WanFeng AoWei among others [5]. - In the engineering machinery sector, companies such as Sany Heavy Industry, XCMG, and Anhui Heli are highlighted as potential investment opportunities [5].