Orient: Data center construction drives high demand for equipment, and the prosperity of equipment going overseas is expected to continue.

Orient released a research report stating that investments in data centers and energy are expected to drive further growth in global demand for high-end equipment. The prosperity of global AIDC project construction is expected to continue, which will drive the demand for high-altitude operation platform equipment to continue to grow, leading to the continued prosperity of high-end equipment going global, with domestic manufacturers expected to benefit. Related targets: Zhejiang Dingli Machinery (603338.SH, Buy), XCMG Construction Machinery (000425.SZ, Not Rated), ZOOMLION (000157.SZ, Buy). Orient's main points are as follows: Event Recently, the International Powered Access Federation (IPAF) released the "2026 Rental Market Report," which stated that the US high-altitude operation platform rental market grew by 4% in 2025, reaching a scale of approximately $15.8 billion, exceeding the organization's earlier expectations for the year. The market growth is mainly attributed to the cost advantages of leasing compared to purchasing equipment, robust underlying demand, and business activities related to facilities management and data center projects. Investments in data centers and infrastructure driving growth in high-end equipment demand Investments in AI infrastructure such as data centers have become an important driver of high-end applications in the US. The bank found that data centers and energy investments are driving factors in private construction spending in the US. During the period from January to May 2026, the non-residential portion of private construction spending in the US was down by -1.7% YoY, but office spending accounted for 14.4% of the non-residential portion, with a YoY growth of 17.1%. Within office spending, the data center portion saw a YoY growth of 47.7% and accounted for 54.7% of office spending; energy (including natural gas and oil) spending accounted for 21.3% of the non-residential portion, with a YoY growth of 9.0%. With the latest IPAF report in mind, the bank believes that the current high prosperity of data center construction, combined with a new round of power infrastructure construction in North America and globally, is catalyzing the demand for power infrastructure through data center construction. Looking ahead, the bank believes that investments in data centers and energy are expected to drive further growth in global demand for high-end equipment. Continuation of AIDC construction prosperity, optimistic about the continued prosperity of high-end equipment going global The bank sees that market confidence in computing power investments is gradually returning. Previously, market concerns about global computing power facilities being oversupplied arose when Meta announced the launch of external computing power leasing services, but these concerns have been alleviated as they later announced a $10 billion investment to build their first data center in Canada. Looking upstream in the industry chain, SK Hynix recently stated that 2027 will be the most supply-constrained year in the history of the storage industry. Despite their efforts to expand capacity to the maximum, even by the year 2030, customer demand may still exceed their supply capacity. Looking ahead, the bank believes that the development of current AI applications is still in its early stages and AI can empower more products and production scenarios, including humanoid Siasun Robot&Automation, and the potential demand for computing power has not yet been fully released. Therefore, it is far from an oversupply of computing power at present. The bank believes that the prosperity of global AIDC project construction is expected to continue, driving the continuous growth in demand for high-altitude operation platform equipment globally, leading to the continued prosperity of high-end equipment going global, with domestic manufacturers expected to benefit. Risk Warning Macro-economic fluctuations leading to investments falling short of expectations, data center construction falling short of expectations, international trade risks, intensified industry competition risks.