Lyon: New momentum in mainland industrial sector. SANY INT'L (00631) and others receive "outperform the market" rating.

The report released by Lyon points out that under the background of the continuous promotion of anti-inner-loop policy in China, the industrial sector is experiencing three key driving forces, including the increasing demand for mining equipment, the maturity of the humanoid robot supply chain, and the consolidation of the express delivery industry. In terms of core business, the bank expects the equipment replacement cycle to continue, coupled with high investments in the power grid and renewable energy, which will drive excavator sales to grow by about 10%. Overseas factories of first-line suppliers are ready, and humanoid robot mass production will commence in the second half of the year; stimulated by strong demand and price increases in the lithium-related fields, automation demand is expected to recover by about 5% year-on-year. The bank prefers companies with stable or recovering core businesses that can also benefit from emerging driving forces. Its top stock picks are Jiangsu Hengli Hydraulic (601100.SH), Sany Heavy Industry (600031.SH), SANY INT'L (00631), and J&T EXPRESS-W (01519), with Jiangsu Hengli Hydraulic receiving a "highly confident to outperform the market" rating and the others receiving an "outperform the market" rating.