Jingshun Great Wall Fund: China's fast-growing market demand and cost advantage in the manufacturing industry are the main reasons for global industrial transfer. Therefore, the demand brought by large-scale infrastructure investment during the 11th Five Year Plan period will greatly relieve the pressure of overcapacity in the industry and improve the overall profitability of the industry. Based on the above background factors, we believe that China's shipbuilding industry, port machinery industry and construction machinery industry will benefit from the industrial transfer and the new round of infrastructure investment cycle, and the leading companies with core competitiveness are our key investment direction.

Xiangcai Heyin: the construction machinery industry has entered the recovery stage since the middle of last year, and the sales volume has increased significantly compared with the same period of last year, of which the sales volume of excavators has doubled. In addition, export will be a long-term driving force of the machinery industry. From the global valuation level, the shares of China's construction machinery industry are undervalued. The median price earnings ratio of global construction machinery companies in 2006 was 14 times, while the valuation of Chinese companies was about 10 times. China Construction machinery is in a period of cyclical recovery and rise. In the long run, the growth of Chinese companies is better than that of international companies, and they should enjoy a high valuation.

Financing fund: with the industrial adjustment policy of "holding while holding pressure" and the structural strengthening of the state's investment in fixed assets, the relevant sub industries are facing very good development opportunities. We are optimistic about the bottleneck industries and long-term equipment sub industries, specifically marine diesel engines, port lifting machinery, mining equipment, railway equipment, electrical equipment and CNC machine tools.

Guohai Franklin fund: there are few negative factors affecting China's construction machinery industry, and there are certain investment opportunities. We should focus on leading enterprises in the construction machinery industry, enterprises with technical advantages and quality advantages, and products and enterprises with certain international competitiveness. At the same time, attention should be paid to the cooperation between industry leading enterprises and foreign capital and the possibility that the second echelon enterprises in the industry may be merged by foreign capital.