China Securities Co., Ltd.: Optimus mass production is gradually approaching, humanoid Siasun Robot & Automation sector catalyst continues.

China Securities Co., Ltd. released a research report stating that the mass production of Optimus is gradually approaching, and in the near future, the production guidelines for the supply chain are becoming clearer. The increase in volume is gradually being verified, and the subsequent release and production of the V3 products are still worth keeping a close eye on. In addition, the IPO of domestic company Siasun Robot & Automation continues to progress, which may lead to a re-evaluation of its valuation, with a focus on the humanoid Siasun Robot & Automation sector. Semiconductor Equipment: Huawei introduced the Tao Law, expressing optimism about the trends in the semiconductor industry. The Tao Law proposed by Huawei points to a new way of measuring progress in chips and systems in China, focusing on how long it takes to complete a task rather than just "nanometers." This expands the optimization beyond the transistor layer to include the logic folding technology, unified bus, Hi-ONE, and recent encapsulated optical I/O technology. Although terminologies may differ, they generally fall under advanced packaging. The core processes mentioned by Huawei involve logic folding using three-dimensional structures instead of two-dimensional ones, with additional processes such as hybrid bonding, thinning, more Chemical Mechanical Planarization (CMP), and higher testing demands. China Securities Co., Ltd. believes that this opens up opportunities for advanced processes and benefits all semiconductor equipment as the value and space for use increase. The focus on advanced packaging should be enhanced, with key incremental processes like bonding, CMP/thinning, plating, TSV, and more. Siasun Robot & Automation: Siasun Robot & Automation is a key direction in AI applications with a focus on high-quality elements in the sector. Physical AI represents the next wave of artificial intelligence, with Siasun Robot & Automation being one of the best physical carriers for AI. It is projected that billions of autonomous systems and Siasun Robot & Automation systems will operate in the physical world in the future. While the sector has seen some fluctuations recently, the advancement of physical AI remains a solid industry trend that deserves attention. In addition, the mass production of Optimus is nearing completion, with clear guidelines for the supply chain, and the subsequent release and production of V3 products remain worthy of close attention. The continued progress of the IPO of domestic Siasun Robot & Automation company may lead to a re-evaluation of its valuation, with a focus on high-quality elements in the sector. AIDC Power Generation Equipment: Clear trend of domestic gas turbine exports. Recent orders for domestic gas turbines are increasing, leading to price increases in the industry chain. After companies like GEV increased prices for gas turbines in March, there is a trend of price increase for domestic gas turbines, which is expected to enhance profitability. Power shortages remain a major theme for the year, and the industry chain for gas turbines is expected to continue to perform well. According to calculations, global demand for gas turbines is expected to exceed 150GW by 2028, while global supply may fall short of 100GW, leading to an increasing gap that supports a positive outlook for the gas turbine industry chain and trends such as ship conversion to gas. Lithium Battery Equipment: Uncovering the second growth curve to initiate a new development cycle. The lithium battery equipment industry inherently possesses a strong capital spending cycle attribute. During periods of high market growth, equipment companies depend on downstream battery factories for large-scale production expansion, but when downstream production capacity utilization decreases and expansion slows down, equipment orders may exhibit more drastic fluctuations than end demand, displaying a typical "second derivative" characteristic. Therefore, equipment manufacturers have been promoting platformization and diversification to pursue a second growth curve, which seems to be showing initial results. The significance of the second growth curve lies in the ability to smooth out the fluctuations in the main business and improve revenue quality, as well as elevate the valuation center to transform the company from a "cyclical equipment provider" to a "platform-based high-end equipment provider." Currently, companies in the lithium battery equipment sector are focusing on three core directions for the second growth curve: 1) expanding universal technology and automation solutions to non-lithium battery areas, such as photovoltaics, 3C electronics, smart logistics, automotive, semiconductors, etc.; 2) empowering products for overseas markets with advanced technology, such as expanding production in foreign battery plants, following domestic customers overseas, providing localized deliveries and services, etc.; 3) exploring new technologies and processes, such as solid-state batteries, sodium batteries, dry electrode compaction, equal-pressure consolidation, composite flow fields, etc. Companies in the lithium battery equipment sector have demonstrated their ability to platformize technology while retaining the option for new technologies, making them truly noteworthy. Construction Machinery: Strong performance in domestic and international demand makes it a good time for investment. The excavator market is improving, with leading companies starting to raise prices. Sales of excavators exceeded expectations in March, and both domestic and international sales continued to exceed expectations in April. In April, sales of various types of excavators reached 28,745 units, an increase of 29.8% year-on-year. Of these, 16,920 units were sold domestically, up 34.9% year-on-year, while exports reached 11,825 units, an increase of 23.2% year-on-year. Domestic demand is increasing, and exports are maintaining strong growth. This year, the peak season for the domestic excavator market has moved later due to the relatively late Chinese New Year compared to last year. Since March, domestic excavators have shown high year-on-year growth, and it is expected to continue to grow in the future. Exports are showing strong performance despite global situations, tariff changes, interest rate cuts, etc. The high growth momentum of China's construction machinery industry remains strong.