China Securities released a research report indicating that Unitree's (688836.SH) listing on the STAR Market has established a valuation anchor for the humanoid robotics sector, potentially leading to a re-rating of robot manufacturers. Continued catalysts include the Optimus V3 launch, new domestic product releases, and upcoming IPOs. Global gas turbine orders reached approximately 38GW in Q2 2026, a record high for a single quarter. Excavator sales in July showed synchronized domestic and export growth, with exports rising 21.2% year-on-year. Industry structure is improving, and leading companies have raised prices. SEMI projects record sales of $165.9 billion in 2026, highlighting opportunities for domestic substitution of components. In the lithium battery equipment sector, solid-state mass production timelines are converging, with policy, production, and equipment catalysts aligning. China Securities maintains a positive outlook on lithium battery equipment and solid-state battery sectors.
Humanoid Robotics: Continuous Catalysts Domestically and Abroad, Focus on High-Quality Segments
Unitree's STAR Market debut provides a clear valuation benchmark for the humanoid robotics sector. Manufacturers, with direct access to end-users, hold significant value in the supply chain, and their valuations are poised for a reset. Robotics companies are actively advancing capabilities in "brain," "cerebellum," and "body" technologies, exploring applications in industrial and commercial settings while expanding shipment volumes. As robots achieve higher levels of generalizability, their addressable applications are expected to broaden. Physical AI represents the next wave of artificial intelligence, and robots are among its most effective physical carriers, making the industry's development trajectory clear. Upcoming catalysts, including Optimus V3 launch and production progress, new domestic robot releases, IPO advancements, and application deployments, will continue to drive sector momentum. Investors are advised to focus on high-quality segments.
AIDC Power Equipment: Global Gas Turbine Boom Continues, Core Components Constrain Deliveries, Rapid Growth in Gas Reciprocating Engines
On the demand side, global gas turbine orders reached approximately 38GW in Q2 2026, a record high, with the US contributing nearly half. Engine capacity for data center-related projects in development (announced, pre-construction, and under construction) has more than tripled over the past six months to 45GW. Electricity demand from data centers in Malaysia rose to 9.3% of total usage in the second week of August, up from an average of 7% in 2026, potentially peaking at 31% of peninsular Malaysia's power demand by 2035. To meet this demand surge, an estimated 9GW of new gas-fired capacity is needed by 2032. Shanghai Electric's first gas turbine order for a 500MW-class combined cycle project in Malaysia lays a solid foundation for expanding its presence in the Malaysian and Southeast Asian markets. On the supply side, BNEF projects that announced expansion plans will boost global gas turbine annual capacity by over 50% by 2030, with the top three manufacturers contributing 28GW of the added 35GW. However, upstream components such as single-crystal blades, forgings, specialty alloys, and generators continue to constrain deliveries.
China Securities believes that record Q2 global orders, coupled with rising US gas-fired construction and AIDC-related project shares, underscore sustained industry momentum. Heavy-duty gas turbine delivery slots remain scarce, pushing some customers toward modular solutions to shorten commissioning timelines. Hot-end components remain a bottleneck for heavy-duty turbine deliveries, while the gas reciprocating engine market grows rapidly. The industry supply-demand gap is expected to persist. Domestic gas turbine manufacturers, leveraging shorter delivery cycles, cost competitiveness, and enhanced product capabilities, are well-positioned to accelerate overseas market share gains.
Construction Machinery: July Excavator Sales Show Synchronized Domestic and Export Growth, Sector Poised for Sequential Quarterly Improvement
In July 2026, sales of excavators totaled 19,521 units, up 13.9% year-on-year. Domestic sales reached 7,608 units (including 41 electric units), up 4.13%, while exports totaled 11,913 units (including 62 electric units), up 21.2%. Overall, both domestic and export sales maintained positive growth, with exports continuing their high growth rate above 20%. Domestic sales growth moderated, particularly for smaller excavators, partly due to a high comparison base in Q3 of the previous year. The overall trend remains favorable, and continued synchronized growth in domestic and external demand is expected. This year, the domestic excavator peak season has shifted later due to the later Chinese New Year, with domestic sales maintaining robust year-on-year growth since March and projected to continue. Export performance remains strong, unaffected by geopolitical factors, tariff changes, or rate hike expectations, sustaining China's construction machinery growth momentum. The domestic competitive landscape is improving, with leading companies announcing price increases. Sany, XCMG, Liugong, and Shantui have raised prices on excavators and cranes, reflecting an easing of the price war that began early this year and a shift toward healthier industry development.
Semiconductor Equipment: Global Cycle Confirmed, Focus on International Expansion
SEMI's updated forecast predicts continuous growth in semiconductor equipment over the next three years, with global sales projected to hit a record $165.9 billion in 2026, up 23.2% year-on-year. This growth momentum is expected to extend through 2028, with total equipment sales potentially reaching a record $229.5 billion, marking five consecutive years of expansion. TSMC has revised its 2026 capital expenditure guidance upward to $60-64 billion, from a previous estimate of $52-56 billion, an increase of $8 billion or roughly 15%. ASML's overall results significantly exceeded market expectations and its own prior guidance. Quarterly net sales reached €9.326 billion, up 21% year-on-year and 6.4% quarter-on-quarter, substantially surpassing both its guidance of €8.4-9.0 billion and the market consensus of €8.85 billion. ASML raised its full-year targets for the second time this year, driven by AI computing power and memory recovery, with an optimized profit structure. The global semiconductor equipment components industry is experiencing a rare, broad-based price surge. Pricing power in the semiconductor supply chain is shifting structurally from chip end-users to equipment and component manufacturers. Component suppliers, being smaller with higher fixed-cost ratios, see price increases translate directly into profits. With production line expansion cycles lasting 12-18 months, supply elasticity is at its lowest. Attention is drawn to domestic substitution opportunities and price hike logic driven by extended lead times from overseas suppliers for valves, piping, ceramic parts, RF power supplies, and gas boxes.
Lithium Battery Equipment: Solid-State Timelines Converge, Equipment Sector Poised for Inflection Point
From a policy perspective, preferential policies are reshaping the cost structure. Starting September 1, lithium-ion batteries will end over a decade of tax exemption, incurring a 2% consumption tax, rising to 4% from September 2027. Solid-state batteries, along with sodium-ion and fuel cells, will be exempt until the end of 2028, provided they meet national standards verified by CMA test reports. This marks the first linkage between tax leverage and the national standards system, accelerating the phase-out of low-end capacity through tax costs while establishing a certification benchmark for technology authenticity. The relative cost curves for liquid and solid-state batteries are thus being redrawn. On the industry front, mass production timelines are converging across the board. The Yibin World Power Battery Conference concluded with a consensus for vehicle integration by 2027. Chery announced full solid-state vehicle verification in 2027 and mixed solid-liquid battery installation in Q4. BYD's 20GWh full solid-state production line in Bishan is set to break ground in Q3. The Ministry of Industry and Information Technology has outlined a roadmap for lithium-rich manganese-based cathodes, silicon-based anodes, and solid-state electrolytes. Leading battery customers have initiated GWh-level production line tenders and are gradually issuing orders, with full solid-state complete lines delivered and accepted by leading vehicle manufacturers. The equipment sector is transitioning from R&D verification to small-scale delivery. On the technology front, engineering and manufacturing are becoming the competitive focus. Dry electrode processing is considered essential for full solid-state mass production, potentially reducing comprehensive energy consumption by about 60% compared to wet processes. The value of key equipment such as isostatic pressing and dry roll pressing is increasing. Industry consensus is shifting from parameter competition to equipment commissioning and yield ramp-up. High-energy-density applications like low-altitude and embodied intelligence are leading initial volume growth, with a clear pathway for automotive-scale adoption by 2030. With policy, production, and equipment catalysts converging, the investment value of lithium battery equipment and solid-state battery sectors remains compelling.
Risk Warnings
(1) Domestic macroeconomic fluctuations; (2) Overseas market volatility; (3) Downstream capacity expansion falling short of expectations.