Zhongtong Finance learned that Northeast Securities released a research report stating that in July, the national scale industrial added value increased by 5.1% MoM, and had steady overall development. The overall development of general and special equipment remained stable, and the growth rate of machine tool production increased significantly MoM. Equipment updates continued to advance, and the purchase of equipment and manufacturing technology investment maintained a high level. It is expected that the update of equipment will accelerate in the second half of the year, driving effective investment downstream.

Event: National Bureau of Statistics releases July economic data.

Industrial added value above designated size:

In July, the national industrial value-added of scale enterprises increased by 5.1%, a decrease of 0.2 percentage points compared to the previous period.

1. The manufacturing industry increased by 5.3% MoM, a decrease of 0.2 percentage points, of which the operating income of equipment manufacturing / high-tech manufacturing increased by 7.3% / 10.0% MoM, an increase of 0.4 percentage points / 1.2 percentage points, and equipment manufacturing drove the industrial added value by 2.4 percentage points, with a contribution rate of 47.9%. 2. General equipment manufacturing / special equipment manufacturing increased by 3.2% / 2.5% MoM, a decrease of 0.2 percentage points / 0.9 percentage points. The manufacturing industry of railways, ships, aerospace, and other transportation equipment increased by 12.7% MoM while electrical machinery and equipment manufacturing increased by 2.8% MoM.

Industrial main product output:

In July, metal cutting machine tools increased by 8.0% MoM, industrial robots increased by 19.7% MoM, 3D printing equipment decreased by 25.3% MoM, service robots increased by 41.6%, and civil drones increased by 84.7%.

Fixed asset investment completion amount:

From January to July, the national fixed asset investment completion amount increased by 3.6% MoM.

1. Manufacturing investment increased by 9.3% MoM, a decrease of 0.2 percentage points, of which the investment in general equipment / special equipment increased by 13.8% / 13.3% MoM, a decrease of 0.2 percentage points / an increase of 0.7 percentage points. The manufacturing industry of chemical raw materials and chemicals increased by 9.9% MoM, and nonferrous metal smelting and rolling processing increased by 23.7% MoM. The automobile manufacturing industry increased by 5.0% MoM, while the manufacturing industry of railways, ships, aerospace, and other transportation equipment increased by 30.1% MoM. 2. High-tech manufacturing increased by 9.7%, of which the aerospace and aircraft and equipment manufacturing increased by 37.7%. 3. Driven by equipment updates, the purchase of equipment and manufacturing technology investment increased by 17.0%, and manufacturing technology reform investment increased by 10.9%.

Overall, industrial development remained relatively fast in July. The equipment manufacturing industry continued to play a leading role, while new production forces continued to grow, and high-tech manufacturing continued to grow rapidly. The output growth of civil drones, industrial robots, and service robots was impressive. The overall situation of general and special equipment manufacturing remained stable, the growth rate of machine tool production increased significantly MoM, and the downturn in producer prices in the industry widened. This is basically in line with the observations that the pressure on the profit side of the general sector is greater than that on the revenue side. Equipment updates continued to advance, and the purchase of equipment and manufacturing technology investment maintained a high level. The 300 billion yuan long-term special national debt funds will be put in place, and the update of equipment is expected to accelerate in the second half of the year, driving effective investment downstream. At the same time, the machine tool and instrumentation sectors are expected to benefit from related policies.

Risk Warning: Overseas economic downturn exceeds expectations, geopolitical conflicts intensify, domestic economic recovery speed is lower than expected, and the export business climate continues to be low.