Soochow Securities: 2026 Outlook Highlights Equipment Exports + AI Boost, Structural Opportunities in Domestic Demand & New Tech

Stock News12-10

Soochow Securities released a research report projecting that under the Fed’s rate-cut cycle, overseas demand may enter a new upcycle by 2026, sustaining strong engineering machinery exports and creating domestic-international synergy. Domestic demand is expected to bottom out with improving sentiment, favoring alpha picks in FA/plastic injection machines/testing/machine tools. High-growth sectors like PCB equipment/liquid cooling/diesel & gas turbines will thrive on AI catalysts. For new technologies, humanoid robot mass production hinges on cost reduction, benefiting local component suppliers. Key views:

**Equipment Exports**: - **Engineering Machinery**: Domestic recovery in 2025 and moderate export rebound, with profit quality upgrades. Domestic cycles may be gradual but prolonged, while overseas demand rises post-2026 Fed easing. Top picks: Sany Heavy Industry (600031.SH), XCMG (000425.SZ), Zoomlion (000157.SZ), Liugong (000528.SZ), Hengli Hydraulic (601100.SH). - **Industrial Forklifts**: 2025 growth driven by replacement demand and automation. Smart forklay solutions favored: Hangcha Group (603298.SH), Zhongli (603194.SH), Anhui Heli (600761.SH). - **Oilfield Equipment**: Middle East EPC projects offer historic export opportunities. Recommendations: Jereh (002353.SZ), Neway (603699.SH).

**Domestic Demand Recovery**: - **PV Equipment**: Platform integration phase; perovskite/HJT adoption accelerates. Key players: Meyer (300751.SZ), Jingsheng (300316.SZ), Autowell (688516.SH), Gaoce (688556.SH). - **Battery Equipment**: Solid-state batteries drive new demand. Top picks: Lead (300450.SZ), Lianying (688518.SH), Hangke (688006.SH). - **Semiconductor Equipment**: Recovery + localization, boosted by AI/storage cycles. Favored: NAURA (002371.SZ), AMEC (688012.SH), Wide (688147.SH), Tongfu (688072.SH).

**High-Growth Sectors**: - **Liquid Cooling**: AI server adoption lifts cold plates/CDU values. Hongsheng (603090.SH), Envicool (002837.SZ) in focus. - **PCB Equipment**: AI-driven expansion boosts high-speed material demand. Han’s CNC (301200.SZ), Dingtai (301377.SZ) prioritized. - **Gas Turbines/Diesel Gensets**: AI power gaps spur local substitution. Jereh (002353.SZ), Yingliu (603308.SH) highlighted.

**New Tech**: - **Humanoid Robots**: Tesla Optimus’ 2026 mass production relies on cost cuts, aiding local suppliers like Hengli (601100.SH), Green (688017.SH).

**Risks**: Export payment delays, weak infrastructure spend, supply chain disruptions, tech bottlenecks.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment