Sinolink: China's high-end equipment manufacturing industry "building a foundation for domestic demand, expanding overseas" suggests focusing on technological self-improvement and deepening the overseas market segment.

Sinolink released a research report stating that China's high-end equipment industry is continuously increasing its market share globally by capitalizing on the advantages of cost, technology, brand, and service. Therefore, from the demand side, it shows a characteristic of "stable domestic demand, strong overseas demand"; from the technological side, it shows a trend of "domestic demand stimulating overseas development, and overseas development driving upgrades." This has led to a structural transformation in China's high-end equipment manufacturing industry, forming a new pattern of "dual-drive" with a foundation in domestic demand and expansion in overseas markets. It is recommended to focus on two main lines for the future development of China's high-end equipment industry. First is the technological revolution represented by AI, which has become a new global growth engine and a key focus point in the technological self-strengthening sector in the great power competition. The second is the sector where global competitive strength continues to grow, and overseas market entry enters a new stage. Sinolink's main points are as follows: Technological Self-Strengthening With the vigorous development of AI technology, a new global technological revolution has begun, and major world powers are focusing on strengthening the technological self-strengthening sector. Technological breakthroughs or changes in emerging technology directions are expected to have broad development prospects and will continue to draw market attention. It is recommended to focus on sectors like gas turbines, industrial mother machines, humanoid robots (Siasun Robot & Automation), controllable nuclear fusion, and quantum computing. Deepening Overseas Expansion At the current moment of reshaping the global industrial landscape, China's equipment manufacturing industry is vigorously expanding overseas through high-end transformation. With the explosive growth of emerging market demand and the recovery of demand in Europe and the United States, the prospects for China's high-end equipment in overseas markets are continuously broadening. It is recommended to focus on advantage industries with strong global competitiveness, such as engineering machinery, forklifts, and agricultural machinery with significant potential for export market share growth. Investment Recommendations and Valuation It is recommended to focus on companies with international competitiveness and those actively embracing emerging industries, such as Anhui Yingliu Electromechanical, Jiangsu Hengli Hydraulic, Wuhan Huazhong Numerical Control, First Tractor, Yantai Jereh Oilfield Services Group, Hangzhou Zhongtai Cryogenic Technology Corporation, XCMG Construction Machinery, Anhui Heli Co., Ltd., Quantumctek Co., Ltd. Risk Warning Risks include lower-than-expected downstream demand, slower-than-expected innovation in new products, and increased competition.