China Securities Co., Ltd.: Yushu's IPO pricing exceeded expectations and is expected to drive a reshaping of valuations for the parent manufacturers.

China Securities Co., Ltd. published a research report stating that the IPO pricing of Yushu exceeded expectations and is expected to drive the revaluation of manufacturers' shares. Future developments such as the release and mass production of Optimus V3, the launch of new products by domestic Siasun Robot & Automation, the advancement of Siasun Robot & Automation's IPO, and the application landing will continue to catalyze the sector's market. It is recommended to focus on quality segments. In addition, domestic gas turbine manufacturers are speeding up their overseas expansion thanks to their delivery capabilities and high cost-performance ratios, maintaining a strong outlook for their overseas endeavors. In the semiconductor equipment sector, global semiconductor equipment components are undergoing a historic and unprecedented full-chain price surge. The pricing power of the semiconductor industry chain is structurally shifting from end chips to equipment and component segments. The main points from China Securities Co., Ltd. are as follows: Humanoid Siasun Robot & Automation: The IPO pricing of Yushu exceeded expectations and is likely to drive the revaluation of manufacturers' shares. The IPO pricing for Yushu is set at 150.80 yuan per share, corresponding to an issuance market value of approximately 61 billion yuan, exceeding prior expectations and is expected to drive the revaluation of manufacturers' shares. Domestic supply chain manufacturers are actively promoting capability building in multiple dimensions such as "brain," "cerebellum," and "body," and are exploring applications in industrial and commercial scenarios, with shipment volumes continuing to expand; as Siasun Robot & Automation's generalization level increases, it is anticipated that its deployment scenarios will further broaden. Physical AI represents the next wave of artificial intelligence, and Siasun Robot & Automation is one of the best physical carriers of AI, indicating a clear trend in industrial development. Subsequent developments such as the release and mass production progress of Optimus V3, the launch of new products by domestic Siasun Robot & Automation, the advancement of Siasun Robot & Automation's IPO, and application landing will continually catalyze the sector's market, and it is recommended to focus on quality segments. AIDC Power Generation Equipment: Financial reports from the three giants reaffirm the high prosperity of the gas turbine industry. In the second quarter, SE, MHI, and GEV signed new gas turbine orders of 15GW, about 4GW, and 12.1GW, respectively, achieving rapid growth compared to the previous period, with all three companies reporting continuous order increases. Specifically, SE has a total of approximately 95GW in formal and reserved large gas turbine orders, MHI's orders have increased to 80 units/35GW, and GEV's gas turbine orders have grown from 100GW to 116GW. On the supply side, all three are accelerating production expansion, with SE planning to increase large gas turbine production capacity from 35 units to over 50 units by FY28, MHI aiming to double heavy-duty gas turbine production capacity by FY30 compared to FY24, and GEV planning to increase output to 30GW by 2030. Meanwhile, the profit margins of the gas turbine related sectors of the three companies have significantly improved, with tight supply and demand accelerating into pricing and profitability realization. The viewpoint from this firm states that the orders, revenue, profit margins, production capacity, and guidance of the three giants in Q2 have all demonstrated significant growth and have collectively been revised upward. The scale of orders on hand provides strong visibility for future deliveries, indicating the continuation of high prosperity in the global gas turbine market. Domestic gas turbines, thanks to their delivery capabilities and high cost performance, are speeding up overseas expansion, with a firmly optimistic outlook for their international ventures. Construction Machinery: In July, both domestic and foreign sales of excavators continued to resonate upward, and the sector is expecting gradual quarterly improvements. In July 2026, the sales of various types of excavators hit 19,521 units, a year-on-year increase of 13.9%. Among these, domestic sales were 7,608 units (including 41 electric excavators), up 4.13% year-on-year; exports were 11,913 units (including 62 electric excavators), up 21.2% year-on-year. Overall, both domestic and foreign sales continue to maintain positive growth, with exports sustaining a high growth rate of over 20%. However, the growth rate of domestic sales has shown signs of slowing down, particularly as small excavators' growth rates have lowered and last years Q3 domestic sales had a relatively high base. Nonetheless, the overall trend remains positive, and there are optimistic expectations for continued upward resonance in both domestic and international demand. This year, domestic excavator sales have shown a noticeable shift towards a later peak season, as the Spring Festival was relatively late compared to last year, leading to a significant recovery in domestic excavator sales with high year-on-year growth since March. Exports have maintained strong performance and have not been disturbed by international conditions, tariff changes, or interest rate hike expectations, indicating that China's construction machinery sector continues to enjoy high growth. The domestic landscape is improving, with leading companies starting to raise prices. Companies such as SANY, XCMG, Guangxi Liugong Machinery, and Shantui have announced price increases for excavators and cranes, reflecting a slowdown in the industry price war that has existed since the beginning of the year, steering the industry towards healthy development. Semiconductor Equipment: The global economic cycle continues to confirm, pay attention to the overseas expansion process. SEMI has updated its forecasts, expecting the semiconductor equipment market to continue its growth over the next three years. SEMI projects that global sales of semiconductor manufacturing equipment will reach a historic high of $165.9 billion by 2026, a year-on-year increase of 23.2%. This growth trend is expected to continue until 2028, with total equipment sales potentially reaching a record $229.5 billion, achieving five consecutive years of growth. TSMC has raised its capital expenditure forecast for 2026. TSMC now expects its total capital expenditure for the year to be between $60 billion to $64 billion, up from a previous estimate of $52 billion to $56 billion, an increase of $8 billion, approximately 15%. ASML's overall performance has exceeded market and company expectations. The total net sales for the quarter were 9.326 billion, a year-on-year increase of 21%, and a quarter-on-quarter increase of 6.4%, significantly surpassing the company's previous guidance of 8.4 billion to 9 billion as well as the market consensus of 8.85 billion, marking the second upward revision of its annual performance target this year. The dual drivers of AI computing power and storage recovery are fueling high prosperity in the industry, with continuous optimization of the profit structure. Global semiconductor equipment components are experiencing an unprecedented price surge across the entire chain. The pricing power of the semiconductor industry chain is structurally shifting from end chips to equipment and component segments. Component companies tend to be smaller, with a high ratio of fixed costs, meaning that price increases are directly translated into profits; concurrently, production line expansion takes 12-18 months, making supply elasticity the weakest. There is a pressing demand for domestic substitutes and pricing logic due to extended lead times from overseas suppliers for valves, pipelines, ceramic parts, RF power sources, and GAS BOX. Lithium Battery Equipment: Lithium battery production scheduling continues to reach new highs, and solid-state batteries have entered a new phase of deployment. Firstly, the lithium battery production scheduling is high, with China's total lithium battery production in August at approximately 304GWh, a month-on-month increase of 7.4%, which surpasses the early month's anticipated range of 3%-5%. Energy storage cell production scheduling stood at 125GWh, generating a net increase of about 10GWh, with preparations for large overseas storage projects propelling energy storage to become the primary growth driver. Secondly, solid-state industrialization is accelerating with multiple milestones being achieved: Qingdao Zhongke Yuan completed the road test of its sulfide all-solid-state battery pack on August 5, marking the first publicly reported operation of a sulfide route in China. A discussion meeting on the draft for ten industry standards for solid-state lithium batteries was held by the Ministry of Industry and Information Technology at the end of July, advancing the standard system from terminology classification to in-depth technical specifications across the entire chain. Additionally, starting from September 1, the Ministry of Finance and other agencies have exempted solid-state batteries from consumption taxes until the end of 2028, directly enhancing corporate profit margins. Thirdly, in terms of equipment realization, Shanghai SK Automation Technology, in joint development with Qingtao Energy, has completed the delivery of all-solid-state dry roller press equipment, opening a new growth curve for solid-state equipment. In terms of industrialization pace, 2026 is designated as the verification year for all-solid-state batteries, with GAC initiating validation for the installation of mixed solid-liquid batteries. Contemporary Amperex Technology and BYD Company Limited have outlined plans for small-scale production and demonstration installation of all-solid-state batteries in 2027, with the cost of sulfide electrolytes having decreased by over 35%, transitioning from "technically feasible" to "economically feasible." The sector is currently in a "high production scheduling prosperity + solid-state battery installation validation + equipment realization" triple resonance window, continuing to uphold the value of allocation in lithium battery equipment and solid-state battery sectors. Risk warnings: (1) Risks of macroeconomic fluctuations: Machinery is a typical midstream capital goods industry that is closely related to macroeconomic fluctuations. If there is a significant shift in macro policies, it will inevitably impact overall demand in the machinery industry. (2) Risks of overseas market fluctuations: The overseas expansion of Chinese companies is not guaranteed to be smooth, and the future journey will undoubtedly encounter various frictions. Whether these are merely short-term issues or indications of a new trend requires careful judgment. (3) Risks of downstream expansion falling short of expectations: If downstream industries fail to expand as anticipated, corresponding equipment demand will decline, adversely affecting order volumes, performances, and other related factors within companies in the industry.