Sinolink: Construction machinery is still at the bottom stage, bullish on humanoid Siasun Robot&Automation, engineering machinery and agricultural machinery.

Sinolink released a research report stating that Tesla, Siasun, BYD Company Limited, Huawei and other main manufacturers continue to increase their investment, with domestic and foreign industries resonating, providing comprehensive investment opportunities in the science and technology innovation board sector. Currently, the domestic construction machinery market is still at the bottom stage, with exports continuing to grow. The agricultural machinery industry is bottoming out in the off-season, with channels still in the process of destocking. The destocking of the agricultural machinery industry continues to progress, paving the way for a strong start in Q1 of 2025. It is recommended to pay attention to the domestic leading company in the large tractor industry, First Tractor. Sinolink's main points are as follows: Market Review Performance of the sector this week: 2024/12/16-2024/12/20 In the five trading days, the SW machinery and equipment index fell by 2.27%, ranking 14th out of the 31 primary industry categories classified by Shenwan; during the same period, the Shanghai and Shenzhen 300 index fell by 0.14%. Performance year-to-date in 2024: The SW machinery and equipment index rose by 9.36%, ranking 14th out of the 31 primary industry categories classified by Shenwan; during the same period, the Shanghai and Shenzhen 300 index rose by 14.47%. Siasun Robot & Automation officially entered mass production for commercial use, continuously catalyzing the industry. On December 16th, it was learned that Siasun officially started mass production for commercial use of the general Siasun Robot & Automation for handling and assembly work. As of December 15th, the cumulative production of Siasun Robot & Automation had reached 962 units, with plans to produce nearly 1000 units by the end of the year. The end of the year until 2025 will mark a key milestone for the mass production of humanoid Siasun Robot & Automation, continuously catalyzing the industry. main manufacturers such as Tesla, Siasun, BYD Company Limited, Huawei continue to increase their investment, with domestic and foreign industries resonating and providing comprehensive investment opportunities for the sector. The domestic construction machinery market is still at the bottom stage, with exports continuing to grow. 1) Domestic: According to data from the China Construction Machinery Industry Association, the sales of domestic mobile cranes, crawler cranes, and truck cranes in November 2024 were 620/54/1405 units, with year-on-year changes of -39.2%, -44.9%, and +11.1%, respectively. Some products have already resumed positive growth, indicating a clear signal of the bottoming out of the domestic construction machinery market. 2) Overseas: According to association data, the export value of Chinese construction machinery in November 2024 was 4.485 billion USD, a year-on-year increase of 16.3%. The continued double-digit growth of exports verifies the logic of resonance within and outside the sector. It is optimistic about the long-term development trend of major construction machinery manufacturers overseas. It is recommended to continue monitoring companies like Sany Heavy Industry, XCMG Construction Machinery, ZOOMLION, Guangxi Liugong Machinery, and Shantui Construction Machinery. The agricultural machinery industry is bottoming out in the off-season, focusing on inventory reduction and bottom reversal in the industry. According to the China Agricultural Machinery Circulation Association, the tractor AMI index was 38.2% in November, a decrease of 4.6 percentage points compared to October, and -11.8% / +1.7% compared to the same period in 2022/2023. According to the National Bureau of Statistics, in November 2024, the production volume of large, medium, and small tractors of enterprises above designated size were 0.56/1.53/1.1 million units, with year-on-year changes of -27.9%, -30.1%, and -8.3% respectively. Comprehensive analysis shows that the overall performance of the agricultural machinery industry is slightly lower than the same period in 2023, but the overall situation is stable, with a clear indication of bottoming out in the off-season. Since September this year, affected by the decline in grain prices and industry inventory backlog, the production and sales of the agricultural machinery industry have declined. Currently, channels are still in the process of destocking, with overall stable performance in the fourth quarter of 2024. The destocking of inventory in the agricultural machinery industry continues to progress, paving the way for a strong start in the first quarter of 2025. It is recommended to focus on First Tractor, the leading company in the domestic large tractor industry. Risk Warning: Risks of macroeconomic changes; Risks of fluctuations in raw material prices; Risks of policy changes.