Gf Securities Co.,Ltd. has released a research report stating that while infrastructure investment is showing positive signs of recovery, real estate investment remains at low levels, resulting in overall domestic demand that is still relatively weak, with expectations for continued policy support. On the external demand front, driven by the AI industry, leading overseas companies have generally raised their capital expenditure expectations. The major trend of AI investment is relatively clear, forming a sharp contrast with traditional industries, and attention should be paid to changes in new technologies. Industrial products in Europe and America are entering a low-level inventory replenishment cycle; demand from mining sectors in Asia, Africa, and Latin America is strong, potentially leading to a synchronized upward trend. The main views of Gf Securities Co.,Ltd. are as follows:

Macroeconomic Developments

According to the National Bureau of Statistics, in May 2026, the national Consumer Price Index (CPI) increased by 1.2% year-on-year, unchanged from the previous month (1.2%), maintaining a positive year-on-year growth rate. From January to May, the cumulative completed investment in infrastructure construction (including power) reached 8,579.287 billion yuan, a year-on-year increase of 0.75%.

Market Performance Analysis

During the current period (June 27 to July 4), the machinery industry index (CITIC) rose by 2.76%, while the CSI 300 Index fell by 0.54% and the ChiNext Index declined by 4.16%. Among machinery sub-sectors, the top three gainers this period were humanoid robots (+14%), ships (+9%), and general automation (+8%). The three largest decliners were PCB equipment (-7%), 3C equipment (-7%), and photovoltaic equipment (-5%).

Sector Dynamics and Developments

(1) According to the Volcano Engine official website, the FORCE Original Power Conference was held in Beijing on June 23-24, where ByteDance released five new self-developed models, including the Doubao large model 2.1 series, fully targeting the large-scale industrial implementation of AI.

(2) According to the NVIDIA annual shareholder meeting webcast on June 24, Jensen Huang declared that "useful AI" has arrived and confirmed that the Vera Rubin architecture has entered full-scale mass production, specifically built for agent AI.

(3) Unitree Robotics announced via its official WeChat account that it has lowered the starting price of the UnitreeR1 to 29,900 yuan, accelerating the industrialization process of humanoid robots in China.

(4) With ChangXin Memory's imminent listing, coupled with last week's announcements by Samsung and SK Hynix of hundred-billion-dollar investment and capacity expansion plans (Samsung at 2655 trillion won, SK Hynix at 1100 trillion won), this validates the high-growth cycle of the memory industry driven by AI. The expansion efforts of memory manufacturers continue to intensify, further driving demand for upstream semiconductor equipment.

Recommended Focus Areas

(1) AI Chain: Rubin entering mass production, mSAP process driving inflation in equipment and consumables, PCB equipment gradually becoming semiconductor-like; significant expansion in optical communication, increased automation rates driving equipment demand growth; rapid expansion of AI data center power demand, extending gas turbine production cycles beyond 30 years, with breakthroughs for domestic gas turbines; memory equipment experiencing a dual resonance from both memory and advanced process expansion. Recommended stocks include Jereh Group Co.,Ltd., Hans Laser, Yingliu Co.,Ltd., Precision Technology, Changchuan Technology (jointly covered with the electronics team), China Shipbuilding Industry Group Power Co.,Ltd., Jingzhida, and Binglun Environment. It is also suggested to monitor Qiangyi Co.,Ltd., Xin Qi Wei Zhuang, Zhongwu High-Tech, Dongwei Technology, Wanze Co.,Ltd., Liande Co.,Ltd., and Lianxun Instruments.

(2) Cyclical Assets: Acceleration in general orders, a sequential decrease in new ship prices, and a resonance of domestic and international demand for construction machinery. Recommended stocks include Songfa Shares, China Shipbuilding Industry Group Power Co.,Ltd., China State Shipbuilding Corporation Limited, Hengli Hydraulic Co.,Ltd., XCMG Construction Machinery Co.,Ltd., Sany Heavy Industry Co.,Ltd., Inovance Technology Co.,Ltd., Bichu Electronics, and Neway Valve Co.,Ltd.. It is also suggested to monitor YFH and Zoomlion Heavy Industry Science & Technology Co.,Ltd..

(3) Growth Assets: The humanoid robot Optimus V3 is about to enter mass production, with the supply chain successively receiving project designations. It is suggested to monitor Lead Intelligent Equipment Co.,Ltd., Jiaocheng Ultrasonic, Weike Technology, Zhejiang Rongtai, and Amperex Technology Ltd..

Risk Factors

Macroeconomic changes leading to fluctuations in demand for machinery products; rising raw material prices suppressing corporate profitability; exchange rate changes causing profit volatility; slower-than-expected progress in capacity reduction, etc.