Core Viewpoint - The report highlights significant changes in the investment strategies of Ruiyuan Fund's star fund managers, with notable adjustments in stock holdings and performance metrics for the fourth quarter of 2025. Group 1: Fund Performance and Adjustments - Ruiyuan Growth Value Mixed Fund experienced a net redemption of 136.2 million shares, marking the second-highest redemption in its history, with total net assets decreasing from 23.629 billion yuan to 21.087 billion yuan [3][4] - The fund's stock allocation increased slightly from 89.93% to 90.48%, while the proportion of Hong Kong stocks in the fund's net value decreased from 27.92% to 20.14% [3][4] - Ruiyuan Balanced Value Three-Year Holding Fund's stock allocation reached a three-year high of 90.66%, with a slight increase in the proportion of Hong Kong stocks to 41.99% [10] Group 2: Stock Holdings and Changes - The top ten holdings of Ruiyuan Growth Value Mixed Fund included New Yisheng, Shenghong Technology, and Ningde Times, with New Yisheng seeing a 22.73% reduction in holdings [4][5] - Ruiyuan Balanced Value Three-Year Holding Fund saw significant changes, with the re-entry of Midea Group into the top ten holdings and reductions in holdings of companies like Lixun Precision and China Ping An [10][12] - The fund managers noted a shift in focus towards sectors like photovoltaic and semiconductor high-end equipment manufacturing, while reducing exposure to companies with weak fundamentals [6][10] Group 3: Future Outlook and Strategy - The fund managers expressed optimism about the market, anticipating that the return on equity assets will remain attractive compared to other asset classes, with potential returns exceeding 10% for leading companies [11][13] - They plan to focus on companies with strong fundamentals and competitive advantages, particularly those expanding overseas, as this is expected to drive future growth [13][14] - The report indicates a structural market environment with limited risks of significant downturns, while opportunities for excess returns remain [8][13]

Core Viewpoint - The company, Juxing Technology, forecasts a net profit for 2025 between 2.419 billion and 2.764 billion yuan, reflecting a year-on-year growth of 5% to 20%, despite challenges from increased tariffs and a turbulent global trade environment [2] Group 1: Financial Performance - The company's net profit excluding non-recurring gains is expected to be between 2.31 billion and 2.65 billion yuan, with a growth rate of 0.2% to 15.2% year-on-year [2] - Revenue is projected to remain stable, with the company's global production network and optimized product and channel structure serving as key support [2] - The second quarter of 2025 will see pressure on domestic production due to the U.S. "reciprocal tariff" policy, affecting delivery schedules and increasing costs [2] Group 2: Global Production Strategy - The company has established a global production layout with 23 production bases, including 12 overseas, to mitigate trade cycle fluctuations [3] - Significant investments in overseas production, such as 120 million yuan in Vietnam and 150 million yuan in Thailand, highlight the strategic priority of shifting production to Southeast Asia [3] - By the end of 2025, Southeast Asian production is expected to cover 90% of exports to the U.S., providing a crucial buffer against tariff barriers [2][3] Group 3: Product and Channel Upgrades - The optimization of product structure, particularly the explosive growth in the electric tools segment, is a core driver of profit growth [4] - The electric tools segment achieved revenue of 742 million yuan in the first half of 2025, a year-on-year increase of 56.03%, with a gross margin improvement of 2.18 percentage points [4] - The company has invested 175 million yuan in R&D, holding 2,904 patents, which supports product upgrades and market position [4] Group 4: E-commerce and Direct Sales - The optimization of channel structure has expanded the company's profit margins, with cross-border e-commerce direct sales becoming a key strategy to offset tariff costs [5] - The company has achieved over 30% growth in its cross-border e-commerce business, with online revenue increasing by 12% year-on-year [5] - The company’s self-owned brand revenue is approaching 50%, significantly improving gross margins compared to OEM business [5] Group 5: Future Outlook - Short-term disturbances are expected in Q4 2025 due to currency fluctuations and additional costs from U.S. factory relocations [6] - The company anticipates a return to stable growth in 2026, supported by new business and product developments [6] - The global production and supply chain system positions the company to respond flexibly to market demands, aiming to increase market share in the global DIY tools market [6]

Investment Rating - The report recommends a positive investment outlook for the machinery equipment industry, particularly focusing on companies with high export potential and strong growth prospects in overseas markets [3][10]. Core Insights - The report identifies three major opportunities for machinery equipment exports: the Belt and Road Initiative driving demand in resource-rich countries, strong demand recovery in Europe and the US, and the shift from capacity export to technology export in high-end manufacturing [3][4][5]. - Key companies recommended for investment include SANY Heavy Industry, Zoomlion, LiuGong, and Hengli Hydraulic in the engineering machinery sector, and Jerry Holdings and Neway in the oil service sector [3][4][5][67]. Summary by Sections Belt and Road Initiative - Investment in oil, gas, and mineral resources in resource-rich countries is accelerating, driving demand for domestic equipment and expanding global market share [3]. - The engineering machinery sector is expected to benefit from rising prices of non-ferrous metals and increased capital expenditure by mining companies, leading to higher demand for high-margin excavators [3][10]. European and American Demand - The report highlights a recovery in overseas production capacity and macroeconomic recovery, focusing on high-quality targets with significant exposure to European and American markets [4]. - Key recommendations include leading Chinese hand tool exporter Juxing Technology and companies in the industrial forklift sector such as Hangcha Group and Anhui Heli [4]. High-End Manufacturing Export - The shift from capacity export to technology export is emphasized, with Chinese equipment manufacturers leveraging their advantages to enhance export ceilings [5]. - Companies involved in the production of optical module equipment, lithium battery equipment, and photovoltaic equipment are highlighted as key players, with specific recommendations for firms like Meiwai and Aotewi [5]. Engineering Machinery Export - The report anticipates a new upward cycle for overseas engineering machinery demand starting in 2025, driven by recovery in global demand and increased capital expenditure in mining and infrastructure [10][11]. - Key companies with established overseas operations and competitive advantages in mining and large infrastructure projects are expected to benefit significantly [10][11]. Oil Service Market - The Middle East is identified as a core market for oil service companies, with high certainty for growth due to stable capital expenditure and strong demand [67][69]. - Recommended companies include Jerry Holdings, which has a comprehensive international certification system and strong project execution capabilities, and Neway, which has a significant presence in the aftermarket service sector [67][69].

Group 1 - The core viewpoint of the article is that Donghai Securities has given a "buy" rating to Juxing Technology (002444.SZ) based on its resilient performance despite external environmental fluctuations [1] - The cross-border e-commerce channel has shown impressive performance, and the company's own brand strength has increased [1] - The company is cultivating a second growth curve, with significant breakthroughs in its electric tools business [1] - Recently, the company has received new orders that are showing a year-on-year improvement [1]

Core Viewpoint - The report from Donghai Securities indicates that Juxing Technology is expected to achieve a net profit attributable to shareholders of 2.419 billion to 2.764 billion yuan in 2025, representing a year-on-year growth of 5.00% to 20.00% [1] Financial Performance - For Q4, the company is projected to realize a net profit attributable to shareholders of 264 million to 609 million yuan, showing a year-on-year change of -28.40% to 65.46% [1] - The overall performance is in line with expectations, demonstrating resilience despite external environmental fluctuations [1] Business Development - The cross-border e-commerce channel has shown strong performance, and the company's own brand strength is increasing [1] - The company is cultivating a second growth curve, with breakthroughs in the electric tools business [1] - As new production capacity in Southeast Asia becomes more efficient, collaboration with traditional ODM clients is expected to return to normal [1] Competitive Positioning - The company has established a diversified global production capacity layout and is building core competitiveness through product innovation, brand strengthening, and channel development [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5] Core Insights - The company's global layout is showing effectiveness, and it is advancing new business expansions [1] - The company expects a net profit attributable to shareholders of 2.419 billion to 2.764 billion yuan for 2025, representing a year-on-year growth of 5% to 20% [3] - The company has implemented a "nomadic factory plan" to adapt to external environment fluctuations, which has helped maintain revenue stability [3] - The cross-border e-commerce channel has seen over 30% year-on-year growth in the first half of 2025, enhancing the company's brand strength [3] - The electric tools business has achieved a breakthrough with a revenue increase of 56.03% in the first half of 2025 [3] - The company has received recognition from Amazon for its brand development, indicating strong channel performance [3] - New orders have shown positive growth, and the company is expected to continue expanding its business and product lines [3] Financial Forecasts - Total revenue is projected to reach 14.8 billion yuan in 2024, with a growth rate of 35.37%, and is expected to grow to 21.35 billion yuan by 2027 [2][4] - Net profit attributable to shareholders is forecasted to be 2.30 billion yuan in 2024, increasing to 3.58 billion yuan by 2027, with a growth rate of 36.18% in 2024 [2][4] - The diluted EPS is expected to rise from 1.93 yuan in 2024 to 3.00 yuan in 2027, with corresponding P/E ratios decreasing from 18.41 to 11.85 [2][4]

Group 1 - The report emphasizes the growth potential driven by AI and the reversal of the anti-involution cycle in the manufacturing sector [1] - Key companies highlighted include Yokogawa Electric, Zhejiang Rongtai, Shanghai Yanpu, Taotao Vehicle, Sany Heavy Industry, Zoomlion, XCMG, and others [2][3] - The core investment strategy focuses on sectors such as machinery, lithium battery equipment, and intelligent robotics, with a positive outlook for 2026 [4][6] Group 2 - The machinery sector is expected to see a strong start in 2026, with continued focus on technological growth in areas like embodied intelligence and commercial aerospace [4] - The report notes that the lithium battery equipment sector has crossed a turning point, with demand driven by energy storage and overseas power batteries, projecting a compound annual growth rate (CAGR) of 19% from 2024 to 2027 [6][10] - The report predicts significant profit growth for key companies, with expected net profits for 2025, 2026, and 2027 being 0.13 billion, 0.84 billion, and 1.90 billion respectively, indicating a CAGR of approximately 290% [11][17]

Core Viewpoint - The stock of Juxing Technology has experienced fluctuations, with a recent decline of 2.00%, while the company shows a modest year-to-date increase of 3.67% in stock price [1]. Financial Performance - For the period from January to September 2025, Juxing Technology achieved a revenue of 11.156 billion yuan, reflecting a year-on-year growth of 0.65%. The net profit attributable to shareholders was 2.155 billion yuan, marking an increase of 11.35% compared to the previous year [2]. Shareholder Information - As of September 30, 2025, the number of shareholders for Juxing Technology was 36,300, a decrease of 25.35% from the previous period. The average number of circulating shares per person increased by 33.96% to 31,637 shares [2]. Dividend Distribution - Since its A-share listing, Juxing Technology has distributed a total of 2.524 billion yuan in dividends, with 1.423 billion yuan distributed over the last three years [3]. Major Shareholders - As of September 30, 2025, the second-largest circulating shareholder is Hong Kong Central Clearing Limited, holding 28.6788 million shares, an increase of 8.9613 million shares from the previous period. The fourth-largest shareholder, Ruiyuan Growth Value Mixed A, holds 23.7311 million shares, a decrease of 1.445 million shares [3].

Summary of Key Points from Conference Call Records Industry Overview - The mechanical industry is focusing on key development areas such as robotics, AI-related equipment, future energy technologies, and traditional mechanical sectors with cyclical advantages [1][3][9]. Core Insights and Arguments Robotics Sector - Domestic manufacturers like Yushu and Leju are expected to go public, with a focus on companies such as Dongfang Precision and Zhongjian Technology [1][3]. - The robotics sector is anticipated to see significant growth, with a production forecast of tens of thousands of units by early 2026 [3]. AI-Related Equipment - The gas turbine is highlighted as a primary recommendation for data center construction, with Jerry Holdings securing a $200 million order and a projected market value of 100 billion RMB [1][4]. - PCB equipment companies like Dingtai High-Tech and Dazhong CNC are expected to benefit from increased AI PCB demand, with market valuations projected to rise significantly [1][5]. Solid-State Batteries - Solid-state battery companies are entering small-scale production bidding phases, with leading firms like CATL taking action [1][6]. - The solid-state battery sector is driven by replacement demand, indicating a stable growth trajectory [6]. Lithium Battery Equipment - Orders in the lithium battery equipment sector are expected to recover significantly starting from Q4 2025, with some companies experiencing order growth rates of 50% or higher [1][7]. - The industry is projected to show a performance turning point in 2026, with significant increases in orders and market activity [7][8]. Nuclear Fusion Industry - The nuclear fusion sector is gaining momentum, with substantial capital expenditures and projects like the Hefei Best project receiving 7 billion RMB in investment [9]. - The industry is expected to see opportunities in 2026, particularly with projects entering peak bidding periods [9]. Engineering Machinery - The domestic engineering machinery market is projected to grow at 10%-15%, driven by large energy projects and infrastructure investments [2][10]. - Overseas markets, particularly in Africa, the Middle East, and Southeast Asia, are expected to see growth rates of 15%-20% [10]. Additional Important Insights Export Chain - The engineering machinery sector has a high overseas revenue contribution, with companies like Juxing Technology and Ousheng Electric benefiting from North American interest rate cuts [2][11]. - The export chain is sensitive to changes in demand, with companies showing confidence in future performance through stock buybacks [11]. Performance Expectations - Companies are expected to see significant growth in Q4 2026, following the resolution of one-time expenses and production ramp-up [12]. - The compound annual growth rate for certain companies is projected to exceed 30% in the coming years [12]. Other Notable Companies and Industries - Companies like Chunfeng Power and Taotao Vehicle are highlighted for their resilience in the motorcycle and two-wheeler sectors [13]. - The tool and gas industries are recommended for their quick turnover and responsiveness to demand changes, with companies like Hangyang and Huari Precision being notable mentions [14][15]. Machine Tool Sector - The machine tool sector is expected to see gradual improvement in orders and performance, with companies like Neway CNC and Haitian Precision being key focuses [16]. Industrial Control Sector - Recommended companies in the industrial control sector include Huichuan Technology and Xinjie Electric, which are expected to experience order growth [17].

Investment Rating - The investment rating for the company is "Buy" and it is maintained [8]. Core Insights - The company, Juxing Technology, forecasts a net profit attributable to shareholders of 2.419 to 2.764 billion yuan for the year 2025, representing a year-on-year increase of 5% to 20%. The expected net profit after deducting non-recurring items is projected to be between 2.309 to 2.654 billion yuan, with a year-on-year increase of 0.2% to 15.2% [2][6]. - The revenue for the year is expected to remain flat year-on-year, supported by new production capacities in Vietnam and Thailand, as well as significant growth in electric tool products. The company’s high level of internationalization and product innovation efficiency has reduced the impact of exchange rate fluctuations on profitability, while direct sales through cross-border e-commerce and increased sales of new products have effectively improved gross margins. Looking ahead to 2026, the inventory cycle and new product cycle are expected to resonate, with a high likelihood of an upward trend in the U.S. real estate and consumer cycles, indicating a return to faster growth for the company [2][6][12]. Summary by Sections Financial Performance - For Q4 2025, the company expects a net profit attributable to shareholders of 264 to 609 million yuan, with a year-on-year change of -28.40% to 65.46%, and a median of 436 million yuan, corresponding to a year-on-year growth rate of 18.53%. The expected net profit after deducting non-recurring items is projected to be between 273 to 619 million yuan, with a year-on-year change of -26.38% to 66.69%, and a median of 446 million yuan, corresponding to a year-on-year growth rate of 20.16% [6][12]. - The company anticipates achieving net profits of 2.592 billion yuan in 2025, 3.101 billion yuan in 2026, and 3.720 billion yuan in 2027, with corresponding price-to-earnings ratios of 17, 14, and 12 times respectively [12]. Market Dynamics - The company has seen a recent increase in new orders, which is expected to gradually reflect in revenue. Despite some negative impacts from tariffs on domestic production capacity, overseas production capacity has returned to normal post-Q2, and the additional tariff costs have raised average industry prices, leading to a decline in industry sales [12]. - The electric tool segment is expected to see significant growth, becoming an important growth driver for the company. The company is continuously expanding its product categories and areas, with new products expected to gradually contribute to revenue growth [12]. Industry Outlook - As of January 2, 2026, the U.S. 30-year fixed mortgage rate has decreased to 6.15%, down from 6.18%, which is expected to further stimulate housing demand and promote steady growth in home sales. The outlook for 2026 is positive, with expectations of a rebound in the U.S. real estate and consumer cycles [12].