China Securities Co., Ltd.: CES exhibition Siasun Robot & Automation shines brightly, with excavator tailing market in December.

China Securities Co., Ltd. released a research report stating that CES's exhibition Siasun Robot&Automation has shone brightly, and the industry is expected to benefit deeply from the development of AI. Tesla's Gen3 is gradually entering a new product release period, with domestic manufacturers accelerating the launch of new products and capital operations. It is recommended to focus on high-quality segments at the bottom, and grasp certainty and core changes. In terms of engineering machinery, excavator sales surged in December, and a strong start to the year 2026 is expected. The storage industry has started a new cycle, and semiconductor equipment companies are expected to maintain high growth in orders. The mid-term acceptance of solid-state batteries is proceeding as planned, with technology solutions further converging. Leading manufacturers are about to bid, and the spring market for lithium battery equipment is promising. The main points of China Securities Co., Ltd. are as follows: Siasun Robot&Automation CES's exhibition Siasun Robot&Automation has shone brightly, and the industry is expected to benefit deeply from AI development. Siasun Robot&Automation displayed good performance and AI intelligence at CES, showing the penetration of AI from software into the physical world. Siasun Robot&Automation, as an important carrier of AI application, will benefit deeply from the development of the AI industry. In addition, Musk's latest interview about Optimus once again shows confidence, with V3 possessing human-level dexterity, AI intelligence, and large-scale production capabilities. Events such as the release of Gen3, new product launches, and the IPO progress of domestic Siasun Robot&Automation manufacturers are worth close attention. It is recommended to focus on high-quality segments and grasp certainty and core changes such as dexterity. Engineering Machinery Excavator sales both domestically and abroad achieved double-digit growth in December, showing excellent performance beyond expectations. The outlook for a strong start to 2026 remains positive. In December 2025, excavator sales reached 23,095 units, a year-on-year increase of 19.2%. Of these, 10,331 units were sold domestically, up 10.9% year-on-year, and 12,764 units were exported, up 26.9% year-on-year. Non-excavator performance has been impressive since Q3, with November's domestic sales of car cranes and crawler cranes increasing by 26% and 102% respectively year-on-year, while exports increased by 8% and 53% respectively. The bank expects the domestic market to achieve growth of over 10% in 2026 and exports to grow by over 15%, with sustained positive momentum domestically and abroad. Semiconductor Equipment Changxin Technology's IPO application has been accepted, signaling the start of a large storage cycle, with equipment companies expected to maintain high growth in orders. Downstream expansion is expected to continue in 2026, especially in storage, where advanced logic is expected to continue to perform strongly, while mature logic may come under some pressure. Domestic manufacturers are accelerating the introduction of locally made equipment, with components, especially module components, expected to undergo faster localization processes. The sector's overall fundamentals are positive. Lithium Battery Equipment Mass production of solid-state batteries has begun, with national standards gradually improving, promising a spring market for the sector. At the 2026 CES exhibition, Finnish startup DonutLab announced the world's first all-solid-state battery, attracting attention as a potential milestone in the global solid-state battery industry, representing the transition of solid-state technology from the laboratory to mass production models. In addition, the national standard for solid-state batteries, "Part 1: Terminology and Classification for Solid-State Batteries for Electric Vehicles," is in the public consultation stage, standardizing industry-specific terminology to reduce confusion. As the mid-term acceptance of solid-state batteries progresses as planned, sample lines from various companies are rigorously tested, leading to further convergence of technology solutions, increased certainty, and a new round of order bids from leading battery and vehicle manufacturers. The spring market for the solid-state battery sector is promising in terms of configuration value. PCB Equipment AI-driven AIPCB is expected to continue driving the demand for updating and upgrading PCB equipment. The PCB industry is showing characteristics of returning to an upward trend, increasing product sophistication, and building factories in Southeast Asia, with the increase in production and changes in technology expected to drive the demand for updating and upgrading PCB equipment. In PCB equipment, the value ratios of drilling, laser drilling, inner layer graphics, outer layer graphics, plating, and inspection equipment are 15%, 5%, 6%, 19%, 19%, and 5% respectively. These are high-value and high-barrier segments that directly determine the interconnect density, signal integrity, and production yield of circuit boards. The industry is moving towards higher layer counts, finer wiring, and higher reliability, placing higher demands on processing technology and leading to significant changes in each segment. It is recommended to pay attention to Guangdong Dtech Technology in drilling and Kunshan Dongwei Technology in plating. Forklift & Mobile Siasun Robot&Automation In November, forklift sales continued to grow domestically and abroad, with a positive outlook for the high-volume intelligent logistics business. Domestic forklift sales increased by 5% in July and exports by 8%, by 11% and 17% in August, by 16% and 23% in September, by 8% and 13% in October, and by 4% and 11% in November for domestic and export sales respectively. The outlook for forklifts both domestically and abroad is positive. Leading companies are actively developing intelligent logistics and unmanned forklifts. In Q4 of this year, they have launched products related to intelligent logistics in the logistics field, and the "unmanned" trend is expected to quickly gain momentum. Key Recommendations for Mechanical Sector Jiangsu Hengli Hydraulic, Aobi Zhongyang, 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 related to fluctuations in the domestic macroeconomy, overseas market volatility, and unexpected delays in downstream expansion.