Sector performance: From the perspective of horizontal comparison of various industries, in the 11th week of 2025 (March 10, 2025 to March 14, 2025), the machinery and equipment industry has a negative weekly cumulative excess return relative to the Shanghai Composite Index, ranking 21st among all industries, with a weekly cumulative excess return of -2.07pct. So far in 2025, the cumulative annual excess return of the machinery and equipment industry is +15.05pct.

Rail transit equipment: From January to February, the national railway fixed asset investment increased by 5.1% year-on-year; From January to February, 726 million passengers were transported by railways across the country. According to the WeChat official account of China Railway, 1) investment in fixed assets: From January to February this year, the national railway fixed asset investment completed 68.54 billion yuan, a year-on-year increase of 5.1%. In February, Chongqing East Railway Station entered the static acceptance stage, the Xi'an-Yan'an high-speed railway tunnel was completed, the Xi'an-Chongqing high-speed railway Ankang tunnel was successfully completed, and a number of key projects such as Shanghai-Nanjing-Hefei high-speed railway, Huangkeo-Baise railway and other key projects made positive progress. 2) Passenger traffic: From January to February, the country's railways sent 726 million passengers, a year-on-year increase of 4.7%, a record high for the same period in history. The national railway operated an average of 11,605 passenger trains per day, a year-on-year increase of 8.7%.

Forklifts: Industry sales increased by 49% year-on-year in February; Anhui Heli plans to establish a factory with an annual output of 10,000 forklifts and lithium batteries in Thailand. 1) According to the China Construction Machinery Industry Association, 101451 sets of forklifts of various types were sold in February 2025, a year-on-year increase of 49.1%. Among them, domestic sales were 66,245 units, a year-on-year increase of 59.4%; The export volume was 35,206 units, a year-on-year increase of 32.9%. 2) According to the "Announcement on the Resolution of the 10th Meeting of the 11th Board of Directors" of Anhui Heli, the company decided to jointly invest with local enterprises in Thailand to establish Heli Thailand Company in cash, and the company holds 75% of the shares. The company plans to build factories in the surrounding areas of Bangkok, Thailand, with an annual output of 10,000 forklifts and 10,000 sets of lithium battery packs.

Industrial gases: Weekly price recovery of liquid gas continued. According to the official WeChat public account of Zhuochuang Information Industrial Gases, as of March 13, this week's gas prices: 1) liquid gas: (1) liquid oxygen: 424 yuan/ton, up 5% month-on-month and down 0.5% year-on-year; (2) Liquid nitrogen: the average price was 412 yuan/ton, up 2.2% month-on-month and down 8.4% year-on-year; (3) Liquid argon: the average price was 508 yuan/ton, up 4.94% month-on-month and down 55.79% year-on-year. 2) Rare gas: (1) Tube bundle high-purity helium: the average price was 87.29 yuan/cubic meter, down 1.21% month-on-month; (2) High-purity helium: the average price was 657.14 yuan/bottle, flat month-on-month, down 17.25% year-on-year; (3) Xenon: the average price was 28,000 yuan/cubic meter, down 2.24% month-on-month and 34.12% year-on-year; (4) Krypton: the average price was 300 yuan/cubic meter, down 3.45% month-on-month and 33.33% year-on-year; (5) Neon gas: the average price was 125 yuan/cubic meter, flat month-on-month, down 7.41% year-on-year.

Oil service equipment: Jereh Natural Gas 3.6GW gas-fired power plant pressure regulating station equipment began to be shipped to Saudi Arabia in batches. According to Jereh Gas's official WeChat account, the 3.6GW combined-cycle natural gas regulator equipment independently designed and manufactured by Jereh Natural Gas has been sent to Qassim Phase I & Taiba Phase I projects in Saudi Arabia to provide support for local clean energy power generation and utilization.

Ships: The global container ship capacity reached 31.88 million TEU; SUMEC delivered three Crown 63 3.0 bulk carriers in succession. 1) According to data released by Alphaliner quoted by China Shipping Weekly's WeChat official account, as of March 14, 2025, the total number of container ships in operation worldwide reached 7,269, an increase of 14 from a month ago. The global capacity totaled 31,879,708 TEU, an increase of 145,660 TEU, and the total tonnage of operating ships was 378186931 deadweight tonnage. 2) According to the WeChat official account of SUMEC, recently, the shipping company of SUMEC Co., Ltd. has delivered 3 Crown 63 3.0 bulk carriers one after another. At present, nearly 40 ships of this type have been delivered, further consolidating the leading position of the shipping company in the international ULTRAMAX type (Supramax bulk carrier) market.

Lithium battery equipment: In 2025, the global shipment of lithium batteries for embodied intelligent robots will reach 2.2GWh, and the industry's first mass production line of fast-charging and wide-temperature 46 series large cylindrical batteries will be delivered and put into production. 1) According to the WeChat public account of Gaogong Lithium Battery, with the commercialization of a large number of embodied robots, there will be a huge demand for lithium batteries. Referring to Tesla's Optimus single unit with power, if each embodied intelligent robot is equipped with an average battery capacity of 2kWh, GGI predicts that the global shipment of lithium batteries for embodied intelligent robots will reach 2.2GWh in 2025, and the demand will exceed 100GWh by 2030, with a compound growth rate of more than 100% from 2025 to 2030. 2) According to the WeChat public account of Yifei Laser, recently, the industry's first mass production line of 46 series large cylindrical all-tab ultra-charged wide-temperature batteries was officially put into operation in Ningbo. The production line was delivered by Yifei Laser to provide system solutions and implement delivery. The production line has applied new processes and technologies such as the newly upgraded all-tab current collector non-destructive molding technology, laser welding intelligent control system, and high-steady-state ultra-low spatter laser welding, which has effectively improved the manufacturing efficiency and product performance. At the same time, the magnetic levitation transmission scheme is adopted, which improves the transmission speed and accuracy, and reduces the dust and mechanical loss. The whole line adopts a flexible design scheme, which can be compatible with the production of various large cylindrical batteries such as 4680/4695/46120.

Robots: Zhiyuan released the first universal embodied pedestal model GO-1; NOETIX releases the first continuous somersault humanoid robot, the N2. 1) According to the WeChat official account of Zhiyuan Robot, Zhiyuan released the first general embodied pedestal model - Genie Operator-1, which pioneered the Vision-Language-Latent-Action (ViLLA) architecture, which is composed of VLM (multi-modal large model) + MoE (hybrid expert), in which VLM obtains general scene perception and language understanding capabilities with the help of massive Internet graphic data, MoE The Latent Planner (implicit planner) in MoE obtains general action understanding capabilities with the help of a large number of cross-ontology and human operation video data, and the Action Expert (action expert) in MoE obtains fine action execution capabilities with the help of millions of real machine data. Embodied intelligence has been taken to the next level. 2) According to Science and Technology Daily and NOETIX Songyan Power's WeChat public account, the 1.3-meter-tall humanoid robot N2 released by NOETIX Songyan Power completed a continuous backflip, and Jiang Zheyuan, the technical director, said that the backflip is more likely to get out of control due to the structure of the soles of the feet. The team boosted the explosiveness with crotch weights, powerful motors, and lightweight materials to achieve this challenging move in just three weeks.

Photovoltaic equipment: Aiko N-type ABC won the bid for Datang module frame centralized procurement, and Otway Semiconductor's aluminum wire bonder was repurchased by China Resources Microelectronics in large quantities. Datang Group announced the bidding results for the 2025-2026 photovoltaic module frame procurement. Relying on the advantages of N-type ABC modules, such as high efficiency, reliable quality and innovative technology, Aiko successfully won the bid for the "N-type BC photovoltaic modules" as the first winning bidder, with a capacity of 1GW. Otway and China Resources Microelectronics have passed the multi-stage verification of semiconductor aluminum wire bonding machine equipment, and have recently been repurchased in large quantities. At present, Otway aluminum wire bonding machine equipment has been successfully introduced into more than 50 semiconductor manufacturing enterprises, involving power devices, IGBT modules, laser devices and other fields.

Construction machinery: Truck crane sales in February 2025 +11.9% YoY. According to the statistics of major truck crane manufacturers by China Construction Machinery Industry Association, 1,656 truck cranes of various types were sold in February 2025, a year-on-year increase of 11.9%, of which 985 were sold in China, a year-on-year increase of 9.81%; The export volume was 671 units, a year-on-year increase of 15.1%.

Export chain: The RMB appreciated slightly against the US dollar this week. 1) The spot exchange rate of USD/RMB on Friday was 7.23, -0.13% from last Friday; The EUR/CNY exchange rate was 7.87, +0.11% from last Friday. 2) In China's export container freight index (CCFI) this week, the composite index was 1191.69, down 6.77% year-on-year and 1.61% month-on-month; European routes were 1622.61, down 14.00% year-on-year and up 1.63% month-on-month; the US East route was 1040.09, down 10.85% year-on-year and 1.94% month-on-month; the western route of the United States was 923.48, down 11.32% year-on-year and 4.06% month-on-month; Southeast Asia routes were 961.96, up 37.20% year-on-year and 0.95% month-on-month.

This week, it is recommended to pay attention to the targets: CRRC, Hangyang, Jereh, Honghua Digital, Sinovel Precision, Otway, Bochu Electronics, Shuanghuan Transmission, Halma Technology, Hengli Hydraulics, Sany Heavy Industry, XCMG Machinery, Yindu Shares, CTI, Greatstar Technology, CIMC.

Risk warning: slowdown in fixed asset investment, tightening of credit policy, potential trade protectionism, etc.

Compliance Reminder: The company acts as the market maker of [688516 Otway], [688396 China Resources Micro] and [688188 Bochu Electronics] in the national SME share transfer system, and investors are reminded to pay attention to the potential risk of conflict of interest in the release of the securities research report.