China Industrials: Trip Takeaways: Stronger, Broader Capex Boom

研报英文原文证据摘录

China Industrials: Trip Takeaways: Stronger, Broader Capex Boom

Idea

June 8, 2026 12:16 AM GMT

Morgan Stanley Asia Limited+MChina Industrials | Asia Pacific Sheng Zhong

Equity Analyst

Trip Takeaways: Stronger, Sheng.Zhong@morganstanley.comChelsea Wang +852 2239-7821

Jinlin.Wang@morganstanley.com +852 2239-1118

Broader Capex Boom Carlos Chai

Research Associate

Carlos.Chai@morganstanley.com +852 3963-3180

The trip strengthened our conviction in the super capex cycle,

from AI hardware equipment to broad equipment and

automation, and on upgrade potential for China's advanced

equipment. We prefer Wuxi Lead, Han's Laser, Hengli Hydraulic,

Sany, Hongfa, Leaderdrive, Neway Valve, and Bochu. China Industrials

Asia Pacific

Industry View In-Line

Key Takeaways

The two segments most beyond expectations have been AI hardware equipment

and the Apple supply chain. Battery and semi equipment are also seeing booming

demand.

Unlike prior ones, this AI-driven capex cycle combines massive scale with rapid

technology iteration, driving continuous equipment upgrade demand.

Most of the companies we met are expanding capacity, widely passing on strong

demand to upstream mechanical and electrical products/equipment.

The strong upgrade demand strengthens companies' abilities toward more

advanced equipment, and also supports margin expansion.

Construction machinery demand, especially overseas, is stronger than market

expectations on strong infra construction and Chinese brands market share gains.

We met with industrial companies to explore overall demand and key themes:

• Automation/robotics/general equipment companies Leaderdrive/Lens Tech/

Leadshine/Xinje/OPT/Farsoon/Bozhon Precision/Topstar/One Robotics/

Huayan Robotics/Zhaowei/Neway Valve