China Securities Co., Ltd.: Engineering machinery data in November exceed expectations, Siasun Robot & Automation plays a role in the industrial resonance between China and the United States.

China Securities Co., Ltd. released a research report stating that the U.S. government is focusing on the development of Siasun Robot & Automation, further raising the strategic height of the development of the U.S. Siasun Robot & Automation industry, and continuing to resonate between the industries of China and the U.S. November construction machinery data exceeded expectations, the fundamentals remain good, and the outlook for the year-end market is positive. Regarding solid-state battery equipment, as the mid-term acceptance of solid-state batteries is expected to be completed by the end of the year, the technical solutions will further converge, and certainty will gradually increase. Leading battery factories and electric vehicle manufacturers are expected to open a new round of order bidding by the end of the year. China Securities Co., Ltd.'s main points are as follows: Humanoid Siasun Robot & Automation The Trump administration is focusing on the development of the Siasun Robot & Automation field, and the industries of China and the U.S. are continuing to resonate. Siasun Robot & Automation is the physical embodiment of artificial intelligence, and current actions by the Trump administration indicate that Siasun Robot & Automation technology is becoming the next major frontier in competition between China and the U.S. The Trump administration's focus on the development of the Siasun Robot & Automation field further raises the strategic height of the U.S. Siasun Robot & Automation industry, and future domestic policies are also worth looking forward to. U.S. companies are actively layout in the Siasun Robot & Automation track, forming a "model-simulation-hardware" closed loop, with high concentration of capital and technology; the domestic supply chain system is improving, accelerating the landing of Siasun Robot & Automation scenarios, and promoting full-stack technology development. The resonance between China and the U.S. in the Siasun Robot & Automation field is expected to continue. The previous sector has undergone sufficient corrections, and upcoming events such as Gen3 acquisitions, new product releases, and Yushu's IPO progress are worth focusing on. It is recommended to focus on quality moments at the bottom, and grasp core changes in certainty and agility. Construction Machinery Domestic excavator sales exceeded expectations in November, exports maintained high growth rates on a high base, and non-excavator domestic sales continued to grow at a high rate. The overall fundamentals remain good, and the sector is firmly optimistic. At the current time, the logic of the resonance between domestic and foreign sales of construction machinery has been continuously verified. The bank believes that for tracking monthly data, more attention should be paid to overseas markets. The profits of most companies from overseas business account for more than 70%, and the sharp recovery in exports since the second half of this year is a high-growth recovery on a high base. The situation of domestic excavators does not represent the full picture of domestic sales. The operating status of industry companies from Q4 to the present remains at a good level. The sector is confidently optimistic. Lithium Battery Equipment The electrification of ships is driving lithium battery applications into new scenes, and the outlook for the year-end market of lithium battery equipment is positive. In recent years, the application scenarios of lithium batteries have gradually expanded from land-based vehicles to eVTOL aircraft flying in the air, and now to ships sailing on the water. This cross-scene penetration is not accidental, but an inevitable result of the precise matching of its core advantages such as high energy density, long cycle life, rapid charge and discharge capabilities with the development needs of various fields, which is quietly reshaping the development patterns of transportation, energy, and the industrial sectors. As the penetration rates of electrification in new scenes such as airborne flights, waterborne travels, and new energy storage gradually increase, the bank remains bullish on further increasing lithium battery demand. In addition, breakthroughs in new technologies such as solid-state batteries and sodium-ion batteries will further accelerate the rate of electrification in various scenes. With the mid-term acceptance of solid-state batteries expected to be completed by the end of the year, technical solutions will further converge, certainty will gradually increase, and leading battery factories and electric vehicle manufacturers are expected to initiate a new round of order bidding by the end of the year, favoring the cross-year market outlook of lithium battery equipment. PCB Equipment AIPCB is expected to continue driving the demand for updates and upgrades of PCB equipment. The PCB industry is showing characteristics of returning to an upward trend, product sophistication, and the establishment of factories in Southeast Asia. The increase in production and changes in processes are expected to continue driving the demand for updates and upgrades of PCB equipment. In the PCB equipment sector, the value shares of drilling, laser drilling, internal layer graphics, external layer graphics, plating, and testing equipment are 15%, 5%, 6%, 19%, 19%, and 5% respectively, all of which are high-value and high barrier segments, directly determining the interconnect density, signal integrity, and production yield of circuit boards. Industry driven by AI is gradually developing towards higher layers, more refined wiring, and higher reliability, with higher demands on processing processes and significant changes in various segments. It is recommended to pay attention to Guangdong Dtech Technology in the drilling segment, and Kunshan Dongwei Technology in the plating segment. Forklift & Mobile Siasun Robot & Automation Domestic and export sales of forklifts continue to grow, and the bank is optimistic about the volume of intelligent logistics-related businesses. In July, domestic sales of large forklifts increased by 5% year-on-year, and exports by 8%. In August, domestic sales of large forklifts increased by 11% year-on-year, and exports by 17%. In September, domestic sales of large forklifts increased by 16% year-on-year, and exports by 23%. In October, domestic sales of large forklifts increased by 8% year-on-year, and exports by 13%. The bank is optimistic about the resonance between domestic and international demand for forklifts. Leading companies are actively deploying smart logistics and unmanned forklifts, and in Q4 of this year, they have already launched intelligent products related to the logistics field, with the potential for rapid expansion of "unmanned" operations. Key recommended companies in the machinery sector: Jiangsu Hengli Hydraulic, Obi China Light, Guangxi Liugong Machinery, XCMG Construction Machinery, Yantai Jereh Oilfield Services Group, Naipu Mining Machinery, Sany Heavy Industry, ZOOMLION, Anhui Heli Co., Ltd., Hangcha Group, Centre Testing International Group, SHOUCHENG, Wuxi Lead Intelligent Equipment, Bozhon Precision Industry Technology, HAITIAN INT'L, Yizumi Holdings, Rigol Technologies, 3S Industry Group INC., Suzhou Maxwell Technologies. Risk Analysis: Risks of fluctuations in the domestic macroeconomic situation, risks of market fluctuations overseas, and risks of downstream expansion not meeting expectations.