Zhongjin: The PMI index rose month-on-month in June. In July, focus on sectors such as AI infrastructure, and optical module equipment.

Zhongjin released a research report stating that the PMI in June 2026 was 50.3%, an increase of +1.0ppt compared to the previous month. The bank is optimistic about AIDC, PCB equipment, and the liquid cooling sector. The bidding for domestic IDC is expected to restart sooner than expected; the main body of AIPCB expansion in 2026 is expected to spread to the entire industry; it is optimistic about 2026 being the first year of realization of orders and logic in the liquid cooling industry. The rapid growth of the optical communication testing instrument market, and it is the right time for domestic substitution. Companies in the shipbuilding industry chain related to whole ships and components have a thick cushion of performance safety. In terms of engineering machinery, it is believed that demand for excavators both domestically and internationally will continue to grow in July. In July, it is recommended to continue to focus on the AI infrastructure chain, shipbuilding, engineering machinery, optical module equipment, and other high-growth sectors and sectors with high performance expectations. Zhongjin's main points are as follows: AI Infrastructure Chain Positive outlook for AIDC, PCB equipment, and the liquid cooling sector. 1) AIDC: Looking at the domestic chain, the bank believes that the bidding for domestic IDC is expected to restart sooner than expected; looking at the overseas chain, according to company announcements, Yantai Jereh Oilfield Services Group recently consecutively won AIDC gas turbine orders totaling over $700 million, and the supply of machine heads is sufficient. Pay attention to the broad market for diesel engines for ships. According to company announcements, MTU and Caterpillar are scheduled to produce until 2028, creating opportunities for domestic ship diesel engines due to supply-demand gaps. 2) PCB equipment: The bank believes that in 2026, the main body of AIPCB expansion is expected to spread to the entire industry. 3) Liquid cooling: Optimistic about the liquid cooling industry's order realization and logic in 2026; in addition, the trend of liquid cooling for optical modules is accelerating. Shipbuilding & Engineering Machinery 1) Shipbuilding: The ship market has seen a recovery in the first half of the year, with global new ship orders/delivery order amounts increasing by +61%/+10% year-on-year from January to June. Companies related to the industry chain of whole ships and components have a relatively thick cushion of performance safety, and it is recommended to pay attention to this sector. 2) Engineering machinery: Export continues to boom, with optimism for mining equipment. In June 2026, excavator exports increased by 36.4% year-on-year, and domestic sales increased by 33.9% year-on-year; sales of new energy engineering machinery also maintained a strong momentum. The bank believes that demand for excavators both domestically and internationally will continue to grow in July. With high mineral resource prices remaining high, the recovery of mining capital expenditure and breakthroughs in overseas markets for large mining trucks are expected. Optical Module Equipment: High-speed optical connection, equipment construction 1) Since May, the business progress of optical module equipment manufacturers has been rapid; the global value chain of optical module packaging and testing is in the order of: testing, coupling, chip mounting (eutectic/solid-state), and other equipment (including automated assembly lines). 2) In the R&D and production processes of optical modules, a rigorous testing process is required, using various communication testing instruments such as sampling oscilloscopes, clock recovery units, and error analyzers. The optical communication testing instrument market is growing rapidly, and it is the right time for domestic substitution. Risks Downstream demand and new product expansion are lower than expected, weakening overseas market conditions, and geopolitical uncertainties.