China Securities Co., Ltd. has released a research report indicating that SEMI forecasts continuous growth for semiconductor equipment over the next three years. SEMI projects global semiconductor manufacturing equipment sales to reach a record high of $165.9 billion in 2026, a year-over-year increase of 23.2%. This growth momentum is expected to persist through 2028, with total equipment sales potentially hitting a record $229.5 billion, marking five consecutive years of expansion. A historically rare, full-chain price increase is underway for global semiconductor equipment components. Pricing power in the semiconductor supply chain is structurally shifting from chip end-products to equipment and components. Component companies, which are smaller with higher fixed-cost ratios, see price hikes directly translate into profits. Meanwhile, production line expansion cycles of 12 to 18 months result in the least supply elasticity. Attention should be paid to the domestic substitution demand and price increase logic driven by extended lead times from overseas suppliers of valve piping, ceramic parts, RF power supplies, and GAS BOX.

Humanoid Robots: The sector is experiencing multiple catalysts, suggesting a focus on high-quality segments. Tesla's Optimus is moving towards mass production, Unitree's IPO is progressing smoothly, and UBTech has launched a new ultra-bionic product, creating a confluence of catalysts. Physical AI represents the next wave of artificial intelligence, with robots serving as one of the best physical carriers for AI, making the industry's development trend clear. Leading manufacturers are actively promoting the application of humanoid robots in industrial and commercial settings. As robot generalization capabilities improve, their application scenarios are expected to expand further, with 2026 potentially becoming a significant year for vertical humanoid robot applications. Mass production by leaders is progressing orderly, and supply chain volume guidance is becoming clearer, validating the pace of volume ramp-up. Upcoming V3 product releases and mass production applications warrant close monitoring. Additionally, new product launches, IPO progress, and application deployments by domestic robot companies continue to catalyze sector performance, supporting a positive outlook and suggesting a focus on high-quality segments.

AIDC Power Generation Equipment: GE Vernova's upward revision of order and capacity targets, along with another multi-billion dollar order for Jereh Group, confirms the high prosperity of the global gas turbine market. This week, GE Vernova released its Q2 earnings, with total formal orders and reserved capacity for gas turbines reaching 116 GW. The company raised its 2026 order target to 125 GW and expects a further increase in gas turbine contract signing by 2027. GE Vernova also plans further capacity expansion, having initiated measures to push capacity to 30 GW by 2030. Meanwhile, Jereh Group announced a $1.465 billion contract (1GW+) with a cloud service provider, approximately RMB 9.95 billion, with phased delivery expected before November 2027. We believe GE Vernova's upward revision of order guidance and capacity expansion plans, along with Jereh Group's substantial gas turbine order, reconfirm the high prosperity cycle of the gas turbine market. 2026 does not mark the peak for orders; the industry remains in a supply shortage. Short-cycle gas turbine capacity is still a scarce resource. The domestic gas turbine industry chain, possessing the capability to export complete units and supporting equipment, is accelerating its overseas market expansion by leveraging delivery capabilities and cost-effectiveness advantages. We firmly support the overseas expansion of domestic gas turbines.

Construction Machinery: Domestic and overseas excavator sales exceeded expectations in June, suggesting a firm position for low-level investments. In June 2026, sales of various excavators totaled 25,445 units, a year-over-year increase of 35.3%. This includes 10,898 units sold domestically (including 65 electric excavators), up 33.9% year-over-year, and 14,547 units exported (including 34 electric excavators), up 36.4% year-over-year. Growth rates accelerated both domestically and internationally. This year, domestic excavator sales have shown a noticeable post-season shift, partly due to the later Chinese New Year. Since March, domestic excavators have maintained strong year-over-year positive growth, with the trend expected to continue. Export performance remains robust, unaffected by international situations, tariff changes, or interest rate cuts, maintaining China's high growth trajectory in construction machinery. The domestic market structure is improving, with leading companies beginning to raise prices. Starting May 1st, companies like Sany, XCMG, LiuGong, and Shantui announced approximately 5% price increases for excavators. Sany and XCMG also raised prices for crane products, reflecting a slowdown in the industry's price war since the beginning of the year, shifting towards healthier development.

Semiconductor Equipment: The global prosperity cycle is being continuously confirmed, focusing on price hikes and overseas expansion. SEMI updated its forecast, predicting continuous growth for semiconductor equipment over the next three years. SEMI projects global semiconductor manufacturing equipment sales to reach a record high of $165.9 billion in 2026, a year-over-year increase of 23.2%. This growth momentum is expected to continue through 2028, with total equipment sales potentially reaching a record $229.5 billion, achieving five consecutive years of growth. TSMC revised its capital expenditure for 2026 upward. TSMC expects its full-year capital expenditure for 2026 to be between $60 billion and $64 billion, compared to a previous estimate of $52 billion to $56 billion, an increase of $8 billion or approximately 15%. ASML's overall performance comprehensively exceeded market expectations and its own previous guidance. Quarterly total net sales were €9.326 billion, up 21% year-over-year and 6.4% quarter-over-quarter, significantly surpassing the company's previous guidance of €8.4-9.0 billion and the market consensus of €8.85 billion. ASML raised its full-year performance target for the second time this year, driven by high prosperity in the AI computing and memory recovery sectors, with continuous optimization of the profit structure. A historically rare, full-chain price increase is underway for global semiconductor equipment components. Pricing power in the semiconductor supply chain is structurally shifting from chip end-products to equipment and components. Component companies, being smaller with higher fixed-cost ratios, see price hikes directly translate into profits. Meanwhile, production line expansion cycles of 12-18 months result in the least supply elasticity. Attention should be paid to the domestic substitution demand and price increase logic driven by extended lead times from overseas suppliers of valve piping, ceramic parts, RF power supplies, and GAS BOX.

Lithium Battery Equipment: The implementation of new national standards is accelerating the development of the solid-state battery industry. Firstly, on the policy and standards front, the world's first national standard for automotive solid-state batteries, GB/T 43568-2026, was officially implemented on July 1st. This standard quantitatively defines liquid, hybrid solid-liquid, and all-solid-state batteries based on the proportion of liquid electrolyte content, explicitly banning vague marketing terms like "semi-solid," "quasi-solid," and "similar solid-state." This thoroughly clarifies the conceptual chaos in the industry's technology, using standardization to continuously guide the industry towards compliant and scaled development. Secondly, on the mass production and construction front, several benchmark production lines have reached key milestones. Docotest's GWh full-solid-state production line began operations on July 1st, with mass-produced cell energy density reaching 350 Wh/kg. Enpower Energy's 2GWh hybrid solid-liquid base in Chuzhou completed capacity ramp-up and reached full production. Saike Power's 0.1GWh all-solid-state pilot line in Yibin is expected to be completed by year-end. From an industry total perspective, in the first half of 2026, publicly planned total investment in the solid-state battery industry chain exceeded RMB 30 billion, with over 100 GWh of capacity under construction. The industry is accelerating from R&D investment to a capacity release cycle. Thirdly, concerning the lithium battery equipment cycle, orders and profitability for leading companies are simultaneously recovering. Lead Intelligent Equipment's new orders in the first quarter totaled RMB 9.6 billion, a year-over-year increase of 60%, driven primarily by incremental domestic and international lithium battery equipment orders, accompanied by growth in energy storage equipment. The overall order growth rate for the lithium battery equipment industry is maintained at 20%-30%, with overall gross margins further recovering. High industry capacity utilization is driving a sustained supply shortage for equipment. The industrialization timelines for automakers and battery companies are becoming clear. GAC plans to start hybrid solid-liquid battery vehicle verification in 2026. CATL and BYD respectively plan to achieve small-batch production and demonstration installation of all-solid-state batteries by 2027. The industrialization timeline continues to become clearer. The current sector is in a "standard implementation + mass production breakthrough + equipment delivery" triple resonance window, and we continue to hold a positive view on the allocation value of the lithium battery equipment and solid-state battery sectors.