--- title: "Soochow Securities Co., Ltd.: General equipment demand is bottoming out, waiting for recovery, exploring α opportunities in segmented directions" type: "News" locale: "en" url: "https://longbridge.com/en/news/224030850.md" description: "Soochow Securities Co., Ltd. released a research report indicating that the demand for general equipment is bottoming out, and the manufacturing industry's prosperity needs to improve. In October to December 2024, PMI showed a slight recovery, with a small increase in the production of industrial robots and machine tools. The 3C and semiconductor industries are expected to replace the new energy sector in contributing to demand, and the injection molding machine market shows good demand, with significant potential for domestic equipment to go abroad. Overall market demand is stable, the industry competition landscape is favorable, and leading enterprises are expected to continuously increase market share through FB business in the future" datetime: "2025-01-06T06:48:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/224030850.md) - [en](https://longbridge.com/en/news/224030850.md) - [zh-HK](https://longbridge.com/zh-HK/news/224030850.md) --- # Soochow Securities Co., Ltd.: General equipment demand is bottoming out, waiting for recovery, exploring α opportunities in segmented directions According to the Zhitong Finance APP, Soochow Securities released a research report stating that the mid-to-high-end data of general automation meets expectations, while the overall prosperity level of the manufacturing industry needs improvement. From October to December 2024, the PMI has remained above the boom-bust line for three consecutive months, indicating a slight recovery in manufacturing prosperity. In terms of equipment production, from January to November 2024, China's industrial robot output reached 480,000 units, a year-on-year increase of 11%. Among these, the demand from the home appliance/electronics/semiconductor sectors is relatively good, while the demand for lithium batteries and photovoltaics is poor. The output of machine tools reached 610,000 units, a slight year-on-year increase of 1.7%, with orders for imported Japanese machine tools increasing by 33% year-on-year, mainly due to the continuous depreciation of the yen, which has improved the cost-performance ratio of Japanese machine tools. A horizontal comparison of relative valuations across various sub-sectors shows that the relative valuation levels, from low to high, are machine tools, cutting tools, reducers, FA, injection molding machines, and industrial robots. **Industrial FA: Elimination of Downstream Drag from New Energy, 3C & Semiconductor Industries Contribute New Growth** The 3C and semiconductor industries are expected to take over from the new energy sector in contributing demand, with FB business opening up long-term growth space. The industrial FA industry aims to address the pain points of component procurement for industrial equipment manufacturers, with overall market demand stabilizing at a high ceiling and a favorable competitive landscape within the industry. In recent years, demand in the lithium battery and photovoltaic industries has weakened, while the 3C and semiconductor industries are expected to take over demand and continuously contribute incremental elasticity. In the medium to long term, the market space for FB business is about three times that of FA business, with a high growth ceiling. Leading FA companies are expected to leverage FB business to continuously increase their BOM share with customers. **Injection Molding Machines: Capital Expenditures in 3C and Home Appliances Drive Domestic Demand Recovery, Medium to Long-Term Overseas Market Space is Vast** In 2024, domestic demand for injection molding machines is good, and in the medium to long term, the export of domestic equipment opens up a growth ceiling for leading companies. Under the guidance of large-scale equipment renewal policies, capital expenditures in the domestic home appliance and 3C industries are on the rise, driving a recovery in domestic demand for injection molding machines. Leading domestic injection molding machine manufacturers are launching cost-effective models to accelerate penetration into lower-tier markets. In terms of exports, the overseas market for injection molding machines is even broader, with leading domestic manufacturers accelerating the layout of overseas sales channels, and the rapid expansion of overseas markets will open up the medium to long-term growth ceiling for injection molding machine companies. **Humanoid Robots: Optimus Mass Production Imminent, Localization of Components Expected to Complete the Final Cost Reduction Link** Attention should be paid to investment opportunities in T-chain and Huawei-chain robot body & component companies. Tesla's Optimus robot is expected to achieve mass production by 2025, but the mass production of humanoid robots still needs to address the key cost reduction link, and domestic component manufacturers are expected to benefit significantly. Additionally, domestic humanoid robots are accelerating their layout, with many manufacturers announcing production plans for humanoid robots. It is recommended to pay attention to investment opportunities in T-chain and Huawei-chain robot body & component companies. **Machine Tools: Domestic Demand Stabilizing and Good Overseas, Focus on the Trend of Localization of Complete Machines & Components** With Trump's administration, self-sufficiency has become imperative, and there is optimism for domestic high-end machine tools to break through against the trend. The importance of safety in the machine tool industry chain has increased under Trump's administration, with frequent domestic support policies aiding the acceleration of localization for high-end machine tools and components. Additionally, in the context of weak demand in the machine tool industry, the market share is concentrating towards leading companies. In the medium to long term, competition in the overseas machine tool market is expected to be milder, with a high market ceiling Against the backdrop of gradually diminishing influence in the Russian-speaking region, we are optimistic about the accelerated overseas expansion of domestic machine tool manufacturers. **Target Aspects** In the industrial FA sector, we strongly recommend the domestic leader Yihada (301029.SZ); for injection molding machines, we recommend the domestic dual leaders Haitian International (01882) and Yizhiming (300415.SZ); for humanoid robots, we recommend Luyiharmonic (688017.SH) and suggest paying attention to Beite Technology (603009.SH), Wuzhou Xinchun (603667.SH), Zhaowei Electromechanical (003021.SZ), Aifute (688165.SH), and Tuosida (300607.SZ); for machine tools, we recommend Huazhong CNC (300161.SZ), Haitan Precision (601882.SH), and Neway CNC (688697.SH), which benefit from improved domestic demand and self-control. **Risk Warning** The industry's prosperity may not meet market expectations, risks of core component supply disruptions, and risks of rising commodity prices ### Related Stocks - [000837.CN](https://longbridge.com/en/quote/000837.CN.md) - [601882.CN](https://longbridge.com/en/quote/601882.CN.md) - [688577.CN](https://longbridge.com/en/quote/688577.CN.md) - [300161.CN](https://longbridge.com/en/quote/300161.CN.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [300769.CN](https://longbridge.com/en/quote/300769.CN.md) - [600110.CN](https://longbridge.com/en/quote/600110.CN.md) - [603009.CN](https://longbridge.com/en/quote/603009.CN.md) - [600438.CN](https://longbridge.com/en/quote/600438.CN.md) - [601012.CN](https://longbridge.com/en/quote/601012.CN.md) - [000155.CN](https://longbridge.com/en/quote/000155.CN.md) - [002971.CN](https://longbridge.com/en/quote/002971.CN.md) - [06690.HK](https://longbridge.com/en/quote/06690.HK.md) - [688165.CN](https://longbridge.com/en/quote/688165.CN.md) - [301029.CN](https://longbridge.com/en/quote/301029.CN.md) - [300068.CN](https://longbridge.com/en/quote/300068.CN.md) - [688146.CN](https://longbridge.com/en/quote/688146.CN.md) - [HUAWEI.NA](https://longbridge.com/en/quote/HUAWEI.NA.md) - [300124.CN](https://longbridge.com/en/quote/300124.CN.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [002024.CN](https://longbridge.com/en/quote/002024.CN.md) - [601555.CN](https://longbridge.com/en/quote/601555.CN.md) - [09880.HK](https://longbridge.com/en/quote/09880.HK.md) - [301005.CN](https://longbridge.com/en/quote/301005.CN.md) - [605050.CN](https://longbridge.com/en/quote/605050.CN.md) - [01882.HK](https://longbridge.com/en/quote/01882.HK.md) - [002009.CN](https://longbridge.com/en/quote/002009.CN.md) - [002056.CN](https://longbridge.com/en/quote/002056.CN.md) - [002536.CN](https://longbridge.com/en/quote/002536.CN.md) - [PHUN.US](https://longbridge.com/en/quote/PHUN.US.md) - [002158.CN](https://longbridge.com/en/quote/002158.CN.md) - [688017.CN](https://longbridge.com/en/quote/688017.CN.md) - [600478.CN](https://longbridge.com/en/quote/600478.CN.md) - [688306.CN](https://longbridge.com/en/quote/688306.CN.md) - [300415.CN](https://longbridge.com/en/quote/300415.CN.md) - [DJTWW.US](https://longbridge.com/en/quote/DJTWW.US.md) - [300607.CN](https://longbridge.com/en/quote/300607.CN.md) - [003021.CN](https://longbridge.com/en/quote/003021.CN.md) - [688028.CN](https://longbridge.com/en/quote/688028.CN.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [300488.CN](https://longbridge.com/en/quote/300488.CN.md) - [688059.CN](https://longbridge.com/en/quote/688059.CN.md) - [688549.CN](https://longbridge.com/en/quote/688549.CN.md) - [603667.CN](https://longbridge.com/en/quote/603667.CN.md) - [DJT.US](https://longbridge.com/en/quote/DJT.US.md) - [688308.CN](https://longbridge.com/en/quote/688308.CN.md) - [300780.CN](https://longbridge.com/en/quote/300780.CN.md) - [SOXS.US](https://longbridge.com/en/quote/SOXS.US.md) - [002595.CN](https://longbridge.com/en/quote/002595.CN.md) - [688697.CN](https://longbridge.com/en/quote/688697.CN.md) - [603938.CN](https://longbridge.com/en/quote/603938.CN.md) - [CP00062.US](https://longbridge.com/en/quote/CP00062.US.md) ## Related News & Research - [The 'Elon Musk Effect' Could Send SpaceX Stock Into Wild Swings After IPO Even If Starlink Makes 'Billions' In Profit, Warns Expert](https://longbridge.com/en/news/286923494.md) - [Motiva Port Arthur refinery reports crude oil release after pipe issues](https://longbridge.com/en/news/286971029.md) - [Announcement from Eimskip: Seafarers’ Union of Iceland announces strike](https://longbridge.com/en/news/286679460.md) - [11:48 ETInventHelp Inventor Develops New Remote Control Finder (TKA-458)](https://longbridge.com/en/news/286941635.md) - [Guangzhou Port Launches Nansha Phase V Project to Boost Capacity to 35 Million TEUs](https://longbridge.com/en/news/286753272.md)